Complete Guide to Business Registration in Bali for Foreigners and Investors

Bali isn’t just a holiday island. It has long been a magnet for foreign investors looking to start a company and handle their business registration in Bali. With its tropical climate, rich culture, and a stable growing economy, Bali offers the perfect environment to build a new business. Many foreigners see great opportunities in tourism, property, food and beverage, and premium lifestyle services. That’s why business registration in Bali is no longer just a dream — it’s a real step for anyone who wants to invest in one of the most desirable destinations in the world.

If you’re thinking about starting a business in Bali, it’s important to understand the legal and administrative process clearly. To avoid any mistakes, read this article until the end — here you’ll find a complete guide to business opportunities, required licenses, and the official steps for business registration in Bali legally and safely.

What Are the Business Opportunities in Bali?

Over the past few years, Bali has become a center for creative industries and tourism growth in Indonesia. Every year, thousands of visitors come, and many end up staying or investing. This makes business registration in Bali an open opportunity, especially for those who want to build lifestyle-oriented or value-driven businesses. Here are some of the most promising sectors for foreign investors:

• Hospitality & Accommodation
  You can start with private villas, boutique hotels, or modern guesthouses. The demand for unique stays with a local touch continues to rise among travelers seeking authentic experiences.
• Food & Beverage
  Healthy restaurants, stylish cafes, and private catering services are trending. Bali has produced many successful culinary brands that later expand internationally.
• Wellness & Health
  Wellness-focused businesses are booming. Spas, yoga studios, and alternative therapy clinics are highly sought after by both locals and expats.
• Digital Services
  Areas like Canggu and Ubud have become digital nomad hubs. Opening a co-working space, creative studio, or digital agency gives you access to the global business network.
• Property & Real Estate
  Demand for long-term villa rentals keeps increasing. You can run property management, villa construction, or short-term rental services for tourists.

Why Is Business Registration in Bali Important?

Many foreigners who come to Bali are tempted to start a business right away without handling the proper legal permits. However, completing your business registration in Bali is a crucial step to operate safely and professionally. Legal registration isn’t just a formality — it’s long-term protection for you and your business. Here’s why registering your business in Bali is essential:

• Avoid legal penalties and deportation
  Running a business without an official license is considered illegal. The government has the right to issue fines or even deport foreign entrepreneurs.
• Obtain a legal stay permit (Investor KITAS)
  Once your business is officially registered, you can apply for an Investor KITAS, allowing you to stay in Indonesia long-term and manage your company legally.
• Open a company bank account
  A corporate bank account helps you manage transactions transparently and professionally. Banks only serve legally registered companies.
• Hire staff legally
  You can employ both local and foreign workers in compliance with Indonesia’s labor regulations.
• Increase business credibility
  A legally registered company builds trust with clients, partners, and investors. It shows your commitment and professionalism as a business owner.

Having a legal business license allows you to operate with confidence, focus on growth, and avoid potential legal issues in the future while running your business in Bali.

Types of Business Licenses in Bali

When going through your business registration in Bali, you need to understand that every business type requires different licenses. Each license ensures your operations are legal, protected, and officially recognized by the Indonesian government. Below are the three main types of licenses you must know before starting your business in Bali:

• Business License (Nomor Induk Berusaha / NIB)
  This is the basic license that shows your company is officially registered in Indonesia. The NIB is issued through the OSS (Online Single Submission) system and serves as your company’s main identification. With an NIB, you can open a company bank account, handle taxes, and make transactions under your business name. It’s also a key requirement before applying for other permits.
• Operational License
  Once you have your NIB, you need to apply for an operational license based on your business activity. For example, if you’re opening a restaurant, you’ll need a restaurant business license. If you’re managing a villa or hotel, you’ll need a tourism license. This license confirms that your business meets local safety, comfort, and environmental standards.
• Special Industry Licenses
  Certain industries require additional permits from specific authorities. For instance, spas and clinics need approval from the Health Department, bars and lounges need alcohol sales permits, while digital agencies might need registration with the Ministry of Communication (Kominfo). These special licenses ensure that your business follows technical and industry-specific regulations.

By completing all three licenses, your business will not only operate legally but also build a strong reputation among clients, partners, and government institutions. This gives you the confidence to grow your business in Bali safely and professionally.

Procedure for Foreigners and Investors to Register a Business in Bali

If you are a foreign national or investor planning to start a business in Bali, understanding the legal process is essential. Every stage in the business registration in Bali process plays a crucial role in ensuring your business operates legally and is officially recognized by the Indonesian government. Below is a detailed step-by-step guide:

1. Determine Your Business Field

The first step is deciding what type of business you want to run. Make sure your business sector is not listed under the Negative Investment List (DNI), which includes industries restricted or closed to foreign ownership. Some small-scale businesses or sectors sensitive to culture and the environment may have ownership limitations.
Use the correct KBLI (Indonesian Business Classification Code) for your main activity, such as:

• KBLI 55101 – Hotel business
• KBLI 56101 – Restaurant business
• KBLI 68200 – Property or villa rental business

Choosing the right KBLI code helps you avoid revisions later and speeds up the licensing process.

2. Choose a Business Location

After defining your business field, select a location that complies with commercial zoning regulations. In Bali, local governments strictly enforce zoning rules — you cannot use a residential property as a business address.

You’ll need to rent or purchase a legally recognized property as your business address. The rental contract or land certificate will be required as supporting documentation during registration. Also, ensure the property has an environmental permit (if necessary) and is suitable for your business operations.

3. Prepare the Deed of Establishment

Next, you must create a Deed of Establishment through a licensed notary in Indonesia. This document includes:

• Company name
• Official business address
• Type and nature of business activities
• Ownership structure (shareholders, directors, commissioners)
• Capital amount and share distribution

For foreign investors, the company must be established as a PT PMA (Foreign-Owned Limited Liability Company), with a minimum total investment of IDR 10 billion (approximately USD 700,000).

4. Legalization by the Ministry of Law and Human Rights

Once the deed is completed, the notary will submit it through the AHU (General Legal Administration) system of the Ministry of Law and Human Rights. This step grants your company legal entity status in Indonesia.
After approval, you’ll receive a Certificate of Incorporation as proof that your business is officially recognized by the government.

5. Registration Through OSS (Online Single Submission)

Next, register your company through the OSS platform at oss.go.id. Here, you’ll fill out company information, select your KBLI codes, and apply for a Business Identification Number (NIB).
The NIB functions as your company ID and includes several roles:

• Company registration number
• Import identification number (if needed)
• Customs registration number

You can also apply for business and operational permits according to your sector (e.g., tourism, restaurant, or health services) directly through OSS.

6. Register with the Tax Office and Obtain a Company NPWP

Every business entity in Indonesia must have a Tax Identification Number (NPWP). After receiving your NIB, register your business at the local tax office based on your company’s address.
The NPWP is required for all financial activities, such as tax reporting, bank account opening, and business transactions with partners.

7. Apply for an Investor KITAS

Finally, you’ll need to obtain an Investor KITAS (Limited Stay Permit Card). This visa allows you to live in Indonesia legally while managing your company. The Investor KITAS is valid for two years and can be renewed. To apply, you’ll need to submit documents such as the deed of establishment, approval letter from the Ministry, NIB, and proof of share ownership. The Investor KITAS replaces the need for a separate work permit since you are recognized as an active investor.

Read more: Residence Permit: A Guide for Foreign Nationals Who Want to Stay in Indonesia

Requirements for Business Registration in Bali

Before starting your business registration in Bali, it’s important to prepare all the required documents completely. Each document has a specific purpose to prove your company’s legal status and structure. Below is a detailed explanation of the requirements you need to prepare to ensure a smooth registration process:

1. Passport with at Least 18 Months Validity

Your passport is the primary document proving your identity as a foreign investor. The Indonesian government requires a minimum validity of 18 months to prevent issues during your residence or investor permit (KITAS) application. If your passport expires sooner, renew it before starting the registration process to avoid delays or document rejection.

2. Business Address (Can Be a Virtual Office)

Every company must have a registered business address. In Bali, you cannot use a residential address since it must be located in a commercial zone. If you don’t yet have a physical office, you can use a legally licensed virtual office service.
This address will appear in your company deed, OSS registration, and NPWP (Tax ID) application. Ensure the address is verifiable and supported by legal documents such as a lease agreement or an official statement from the property owner.

3. Lease Agreement or Property Ownership Certificate

If you rent your business premises, you must have a legally valid rental agreement that includes:

• The names of both tenant and property owner
• Lease duration (minimum one year)
• Full property address
• Rental amount and payment terms
  If you own the property, include your land certificate — either Hak Milik (Freehold) or Hak Guna Bangunan (Right to Build). This document confirms that the address can legally be used for commercial purposes.

4. Business Plan

A business plan is a key document that outlines your company’s direction and goals. It’s often required when establishing a PT PMA (Foreign-Owned Company).
A solid business plan should include:

• Business description (industry, products, or services offered)
• Market analysis (target customers, competitors, and growth potential)
• Organizational structure and key roles
• Financial projection (investment, revenue, and profit for 3–5 years)
• Long-term expansion plans
  A clear business plan demonstrates your seriousness as an investor and supports a smoother approval process.

5. Shareholding Structure

This document details who owns the company and their respective shares. For a PT PMA, at least two shareholders are required — individuals or legal entities.

For example:

• Investor A (foreign) – 60% shares
• Investor B (local) – 40% shares
  The shareholding structure will be included in your company deed, approval letter from the Ministry of Law and Human Rights, and BKPM (Investment Coordinating Board) reports.

6. Minimum Investment Capital of USD 700,000 (≈ IDR 10 Billion)

The Indonesian government requires a minimum investment of USD 700,000 (around IDR 10 billion) to establish a PT PMA. This total represents the overall investment value, including setup costs, equipment, business development, and working capital. The amount ensures that foreign investors are genuinely committed to operating a serious, long-term business in Indonesia.

7. Minimum Paid-Up Capital of USD 175,000 per Foreign Shareholder

Each foreign shareholder must contribute at least USD 175,000 as paid-up capital. This amount may be used for operational expenses and must be recorded in the company’s financial statement. It also serves as proof of financial capability when applying for investment approval through BKPM.

8. All Documents in Bahasa Indonesia or Officially Translated

All foreign-language documents must be officially translated into Bahasa Indonesia by a sworn translator. This includes passports, lease agreements, partnership contracts, and other legal documents from abroad. Without official translation, the documents may be considered invalid and delay the registration process.

Tips for Starting a Business in Bali for Foreigners and Investors

Starting a business in Bali as a foreigner is exciting, but you must understand the right way to do it to ensure your business runs smoothly, legally, and successfully. Besides completing your business registration in Bali, there are several important things you need to pay attention to before you start operating.

• Avoid Using Local “Nominee” Names
  Many foreigners are tempted to start a business quickly by using a local Indonesian name as the registered owner. While it seems easier, this practice is extremely risky. Legally, the business won’t belong to you, meaning you have no ownership protection if problems arise in the future. Instead, establish a PT PMA (Foreign-Owned Company).
• Hire a Professional Business Consultant or Notary
  Indonesia’s business regulations, especially those involving foreign investment, can be complex and change over time. Working with an experienced legal consultant or notary who specializes in corporate and investment law in Bali can make the process much easier.
  We can help you prepare the correct documents, avoid administrative mistakes, and ensure your company complies with government requirements. It’s an investment that saves you time and prevents costly errors.
• Understand Local Work Culture
  Business in Bali often operates at a different pace than what you may be used to. The work culture here values relationships, patience, and communication. You’ll need to adapt to a more relaxed yet respectful working rhythm.
• Pay Attention to Business Zoning Regulations
  Not every area in Bali is allowed for commercial use. Before renting or purchasing property for your business, always check the local zoning permits (izin zonasi). If your business operates in the wrong zone, the local government has the authority to shut it down or revoke your business license. 
• Build Strong Local Connections
  Good relationships with local communities, village officials, and government representatives are invaluable for running a business in Bali. Establishing trust and showing genuine respect for the local community will make it easier to grow your business.

Read more: KITAS Investor: Everything You Need to Know Before Investing in Bali

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If you’re planning to move to Indonesia and start a business in Bali, it’s essential to understand the business registration in Bali thoroughly. Indonesia has strict legal regulations, especially for foreign investors. By knowing the required permits, registration steps, and proper company structure, you can build your business legally and avoid potential legal issues in the future.

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