Setting up a Business in Bali
Why Invest in Indonesia, and where does one start?
Indonesia is an extremely attractive place for foreigners to live, trade and invest. Many foreigners own businesses in Bali – in a variety of sectors such as tourism, accommodation, trading, manufacturing, restaurant and service industry. The Indonesian Government is trying to remove red tape in order to attract foreign investors, however obtaining business permits is still confusing and hazardous, in particular to newcomers who lack experience with Indonesian laws. Indonesia has cultural peculiarities which, to an outsider, can make matters extremely complicated. Our consultants are here to bridge the working relationships with the land owner, Banjar, and the local authorities. Citra Consultant Indonesia is here to assist you in setting up your company legally, with all the necessary documentation needed to ensure your success.
Deciding what type of business formation suits the needs of your business is key.
Will you be starting a PT Local (Private Limited company), PT PMA, CV (Indonesian owned company) or Representative office?
Most foreign owned companies in Indonesia are classified as a PT PMA – Penanam Modal Asing – or Limited Liability Company. A foreign investor can be a foreign person, a foreign company or a foreign government body. (An exception to this is a foreign representative office, where a foreign company is doing only marketing or exploring business opportunities in Indonesia that does not generate income).
Foreign ownership varies from 1% to 100% and depends on the business classification. The determining factor is the “Negative Investment List” issued by the Indonesian Government. This stipulates which sectors are open to foreign investment in Indonesia as well as the percentage of foreign ownership permitted. Business scopes outside of this list, is opened to foreign investment, unless stated otherwise in other regulations. CCI’s consultants will advise you on the exact regulations concerning your business activities.Indeed, our team provides a full company registration service that manages the incorporation process.
You will leave our consultation meeting understanding the answers to critical matters like:
How can I own a business in Bali? What businesses in Bali are open to foreign investment? What are the risks of being a director and having a company? When can I start working in my company? What are the rules and regulations for employing local or expat staff? How do I file business taxes once the company is set up? How long will it take to register my business in Bali? What is the investment capital for a PMA (Foreign Investment Company) or PT. Local (Local company)? Those are few examples of things that are frequently asked by foreign investors. One has no choice but to follow the Indonesian rules. CCI knows that successful businesses in Bali have one thing in common – a proper legal foundation. Having the proper start to your business will make or break it, therefore we make it our duty to deliver ultimate security, protection and full compliance with Indonesian business, property and immigration laws.
CCI offers the following business incorporation services:
- Company establishment: PMA (foreign investment limited liability company), PT (local limited liability company), UD (Private Trading Company), CV (Limited Partnership) and Yayasan (Foundation).
- Foreign Investment advice including legal updates.
- Reporting investment activities (LKPM) to the BKPM (Indonesian Investment Coordinating Board).
- Employment: contracts and advice on Indonesian government requirements.
- Restructuring the legal status of companies, i.e. from CV to PT, from PT Local to PMA, change shareholders, change of board of directors or commissioners, expand the scope of your business.
- Mediation to get permission and licenses for international corporate seminars and meetings.
- Indonesian National Social Security (BPJS – Badan Penyelenggara Jaminan Sosial) enlistment for Indonesian and expat employees.
- Guidance on legal acquisitions of company owned property and assets.
A good business consultant should be able to offer you:
- Customized attention to accommodate our client’s busy travel schedules.
- Current updates on rules and regulations, including foreign Investment laws and visa laws.
- Expiry notification for all your legal permits, contracts and business certificates, as well as the consequent renewal of these documents.
- Professionally drafted contracts that are translated to English.
- Employment contracts that protect you and your company’s interest.
- Door-to-door service for document pick up and delivery.
We are happy to help answer questions and help get your business in Bali started. You can start here.