Bali is not just a tropical paradise in Southeast Asia — it’s also a promising location for building a business. A favorable climate, a growing economy, and welcoming conditions for foreign entrepreneurs make the island an ideal starting point.
Foreign investors looking to establish a business in Indonesia can set up a company in Bali under a PT PMA (Penanaman Modal Asing) license. Essentially, this is the equivalent of a limited liability company with foreign capital participation.
In this article, we’ll walk you through the key steps that will simplify the company registration process in Indonesia and help you avoid common mistakes.
Under Indonesian law, a PT PMA company name must consist of three words in either English or Indonesian. Each word must contain at least three letters.
Before finalizing your name, we recommend checking its availability. You can submit a name approval request through the official online system of the Indonesian Ministry of Law.
Tip: Choose a name that is easy to pronounce, memorable, and reflects your area of business. This will simplify brand promotion down the road.
Registering a PT PMA requires at least two shareholders. These can be individuals or legal entities. The PMA designation indicates that the founding structure includes foreign nationals.
At this stage, it’s important to clearly define:
Important: A PT PMA structure must include at least one director and one commissioner. Both positions can be held by foreign nationals.
PT PMA companies can engage in a wide range of business activities. The full list is available on the OSS portal (One Single Submission), managed by Indonesia’s Ministry of Investment.
Company owners can select up to five business activity codes. However, we recommend starting with just one or two. The reason is simple: more KBLI codes mean higher minimum capital investment requirements.
Additional activity codes can be added later for an extra fee.
To register a PT PMA, you must provide a legal address within Indonesia. This can be a rented or owned property. The following documents are required:
Tip: Many entrepreneurs use virtual office services at the initial stage. This significantly reduces costs and speeds up the registration process.
At this stage, the company’s articles of association are drafted, the authorized capital is determined, and the legal entity is officially registered.
Key consideration: The Indonesian government only allows foreigners to establish medium and large companies with authorized capital exceeding 10 billion Indonesian rupiah (approximately $625,000). Small businesses with capital starting from 50 million rupiah are available exclusively to Indonesian citizens.
Immediately after registration, the company is enrolled for tax purposes and receives an individual NPWP (Nomor Pokok Wajib Pajak) number — the Indonesian equivalent of a tax identification number. A company registration certificate is also issued.
In Indonesia, each type of business activity requires a corresponding license. The licensing process is relatively straightforward, but we strongly recommend engaging a qualified lawyer at this stage.
A specialist can help you determine:
