Starting A Company in Bali: Business Consultant’s Guide for Foreign Entrepreneurs

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Bali’s booming tourism industry attracts not only vacationers but also aspiring business owners. Foreigners can now set up their own business in Bali, thanks to Indonesia’s recent efforts to simplify investment and business processes. 

From creative fields like fashion, photography, and graphic house, to wholesale import-export trade. So many options and opportunities. But what does it take to get your business off the ground in Bali? Let’s find out.

Business Consultant Tips for Company Incorporation

First thing first, a profitable business needs a solid foundation. That’s why it is highly recommended for you to start your own company. Operating outside the legal framework in Indonesia exposes you to unnecessary risks and limitations. A legitimized company will support you with a professional image, fosters trust with customers, and grants access to essential resources – all vital ingredients for building a sustainable and profitable business in Bali.

The most popular option for foreign entrepreneurs in Indonesia is a PT PMA (Foreign-Owned Limited Liability Company). This structure grants full ownership, allows hiring foreign staff, and facilitates business visa sponsorship.

Incorporation involves working with a public notary to create a Deed of Establishment. This document contains specific information about your company, including details on shareholders, the type of business activity you will be engaged in, and the amount of authorized capital, along with the company’s management structure

An alternative is a Representative Office (KPPA) established by a foreign company to represent its interests in Indonesia. However, KPPA functionality is limited. They typically cannot engage in direct operations, sign contracts, issue invoices, receive client payments, or participate in other profit-generating activities. However, any options you choose require you to obtain a tax identification number (Nomor Pokok Wajib Pajak/NPWP) from the tax office before you continue registering your business.

Applying for Business License

Once the public notary officially validates your Deed of Establishment and you’ve obtained your tax identification number, it’s time to register your newly established company for legal operation in Indonesia. Essentially, to launch a business, you’ll need to acquire the following licenses:

1. Single Business Identity Number (NIB): This number serves as a unified registration for various business licenses.

2. Business License (Izin Usaha): This authorizes your specific business activity which are classified based on an assessment of the level of hazard, the level of risk, and the range of business scale.

The good news is that business licenses can be applied for online through the Online Single Submission/OSS website (https://oss.go.id/ ). However, for certain business sectors like finance, mining (oil and gas, minerals, coal, and geothermal), and property, additional licenses require application through the One Stop Service Center (Pelayanan Terpadu Satu Pintu or PTSP Pusat) also managed by Coordinating Ministry for Investment and Maritime Affairs.

Business Consultant Tips for the Essentials  

A thriving business doesn’t happen overnight; it’s built on a strong foundation of supporting factors.  This includes:

1.  In-depth target market research to understand your ideal customer’s needs, wants, and pain points. By having a clear picture of your target audience, you can tailor your products, services, and marketing efforts to resonate with them.

2.  Assembling a capable team and staff.  Surrounding yourself with skilled and motivated individuals who complement your strengths is crucial for efficient operations and growth.

3. Additionally, utilizing the correct marketing tools, whether it’s social media platforms, marketing software, or other digital strategies, is essential for reaching your target market and building brand awareness.

4.  Finally, success factors are the drivers that propel your business towards achieving its goals. This could be anything that sets you apart from the competition, such as a high-quality product or service that consistently delivers value to your customers. Exceptional customer service that builds loyalty and positive word-of-mouth can also be a significant success factor.

Business Consultant Services for Trusted Local Partner

Apart from understanding the important legal requirements mentioned above, you also need to avoid basic mistakes in setting up your company to ensure your company will be running well. First, you need to make sure that you use the trusted agent to register your company. BKPM requires you to have a locally owned company to process the application. Seven Stones Indonesia can assist you with your market-entry strategies.  

With deep understanding of Indonesian industries and regulations, our comprehensive service in business setup will make your initial entry running smooth and seamless. You can focus on growing your business, achieving your financial goals, and let us do the paperwork. Ready to conquer the Indonesian market? Contact Seven Stones Indonesia today or fill out our contact form below with your burning questions about company setup. Our professional team will be happy to answer.   

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Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.