How to Open a Company in Bali and Get a Business License Step by Step 2027

How to Open a Company in Bali and Get a Business License Step by Step 2027

Opening a company in Bali in 2027 involves adhering to new government regulations, especially in light of recent policy shifts affecting foreign-owned businesses. Following the outlined steps can help ensure a smooth process.

1. Understanding the Regulatory Environment

The Indonesian government has imposed a ban on registering new PT PMA (foreign-owned companies) under low-risk and medium-low-risk KBLI codes. This restriction, effective from late 2025, forces foreign investors to explore high-risk categories. Familiarize yourself with the updated Bali business registration guide to comprehend which business activities are permissible. The high-risk categories typically include sectors such as mining, certain types of manufacturing, and energy production. These sectors, while offering significant opportunities, also come with stringent regulatory requirements aimed at ensuring environmental and social compliance.

2. Choosing the Right KBLI Code

With the low-risk ban in place, selecting a high-risk or medium-high-risk KBLI code becomes crucial. These categories still allow foreign participation and offer potential for growth in Bali’s dynamic market. It’s essential to thoroughly research and select a viable business activity as per the current regulations. The official KBLI directory, available through the Indonesian Ministry of Investment website, is an invaluable resource for identifying suitable codes. Consider consulting with industry experts or business consultants who have an in-depth understanding of market trends and regulatory requirements. They can provide insights into which sectors are poised for growth and align with your business objectives.

3. Incorporation Process

• Drafting the Articles of Association: Work with a local notary to draft and notarize your company’s Articles of Association. This document outlines the company’s purpose, structure, and operational guidelines. It’s crucial to ensure that the articles are comprehensive and comply with Indonesian corporate laws.
• Obtaining a Deed of Establishment: Get the notarized deed registered with the Ministry of Law and Human Rights. This step solidifies your company’s legal standing and is a prerequisite for further registrations. The registration process typically takes between 7 to 14 days, depending on the complexity of the case and the workload at the ministry.
• Securing a Tax Identification Number (NPWP): Apply for a corporate NPWP from the local tax office. This number is essential for tax reporting and compliance. The application process involves submitting your deed of establishment and other relevant documents, and it may take up to 10 business days for the NPWP to be issued.

4. Registering with the OSS System

Once the company is incorporated, register it on the Online Single Submission (OSS) system. This platform facilitates the issuance of business licenses, including a Business Identification Number (NIB) which is mandatory for operating legally in Indonesia. The OSS system is designed to streamline the licensing process, reducing the need for physical paperwork and allowing real-time tracking of your application status. However, system can be complex, and it’s recommended to seek assistance from local professionals who are familiar with the platform’s intricacies.

5. Obtaining Necessary Permits and Licenses

Depending on your selected KBLI code, additional permits may be required. For high-risk activities, this could involve environmental permits, location permits, and sector-specific licenses. Consulting with a local expert can help navigate these requirements. For further details and assistance, refer to our application assistance page. Obtaining these permits often requires detailed submissions, including environmental impact assessments and proof of compliance with local zoning laws. The timeline for securing these permits can vary significantly, from a few weeks to several months, depending on the project’s scope and the responsiveness of the relevant authorities.

2027 Note: As regulatory changes are frequent, staying updated with the latest government announcements is crucial. This ensures compliance and helps in adapting your business strategy accordingly. Regularly checking official government websites and subscribing to industry newsletters can provide timely updates on regulatory changes that may impact your business operations.

FAQ

Can you outline a detailed, step-by-step process for a foreigner to open a company and obtain all necessary business licenses in Bali for 2027?

Yes, the process involves understanding the regulatory environment, choosing a high-risk KBLI code, drafting articles of association, registering with the Ministry of Law and Human Rights, obtaining a tax identification number, registering with the OSS system, and acquiring necessary permits pertinent to the business activity. Each step requires careful attention to detail and compliance with specific legal requirements to ensure a successful establishment in Bali’s business landscape.

What KBLI codes are still available for foreign-owned companies in Bali post-2026?

Only medium-high-risk and high-risk KBLI codes remain available for foreign-owned companies in Bali, following the ban on low-risk categories. These codes encompass sectors like certain manufacturing and energy industries. The Indonesian Investment Coordinating Board (BKPM) provides an updated list of these available codes, which should be consulted regularly to ensure alignment with current regulations.

How can I ensure compliance with the new regulatory requirements in Bali?

To ensure compliance, regularly consult updated governmental resources, engage with local legal experts, and leverage professional services for business registration and licensing. Staying informed will help navigate the changing landscape effectively. Participating in industry seminars and workshops can also provide valuable insights into best practices for maintaining compliance and adapting to regulatory changes.