Embarking on the journey of establishing a restaurant and cafe business in Bali demands considerable effort from foreign entrepreneurs. Nevertheless, the prospect of opening a dining establishment in this picturesque locale can be one of the most fulfilling experiences of a lifetime. Balancing the pursuit of steady profits with the allure of living in paradise, setting up a restaurant in Bali aligns with the aspirations of many international investors.
Undoubtedly, when executed with precision, establishing a restaurant in Bali presents a promising route to success. For those seeking guidance on the process or currently in the throes of setting up their initial restaurant in Bali, this article serves as a valuable resource.
Also read: 20 Best Food in Bali: A Guide to Exquisite Balinese Cuisine
Restaurant and Cafe Business in Bali
Dining in Bali has evolved significantly, transforming the island into a lucrative paradise beyond being a sought-after holiday destination. According to the McKinsey Global Institute, an estimated 135 million individuals will enter the country’s consuming class by 2030. This demographic, with increased disposable income, will continuously seek entertainment and dining experiences, contributing to the sector’s significant impact on the country’s GDP.
Also read: 10 Business Opportunities in Bali: Which are the Most Profitable?
Can a Foreigner Open a Restaurant in Bali?
Yes, foreigners can absolutely open a restaurant in Bali! In fact, since 2016, you’ve been able to own 100% of a restaurant business as a foreigner, which makes the process much easier. However, there are still some steps and considerations involved in turning your culinary dream into reality.
Also read: How to Start a Business in Bali as Foreigners: A Complete Guide
Legal Entities for Bali’s Restaurant Business
To set up a restaurant business in Bali, which is considered part of the tourism industry, foreign investors should refer to Ministerial Regulation No. PM. 87/HK.501/MKP/2010. Compliance involves establishing a physical space capable of accommodating over 60 seats in commercially suitable zones, along with acquiring necessary permits, as outlined in subsequent sections. (read also: BPOM Indonesia Food Regulation)
Legal entities for restaurant businesses in Bali include two common options: a local company (PT) and a foreign-owned company (PT PMA). While a PT requires 100% ownership by an Indonesian national, a PT PMA offers the advantageous option of 100% foreign ownership in the restaurant sector, aligning with the Indonesian government’s Negative Investment List.
It is crucial to note that small-scale eateries, known as “Rumah Makan” in Indonesian, can only be formed under a PT owned by Indonesians.
Also read: The Minimum Capital for Establishing PMA Company in Indonesia
Licenses and Permits Required for Opening a Restaurant in Bali
The necessary permits and licenses for this industry are outlined below:
- Building permit (IMB)
- NPPKBC and/or SIUP-MB if you sell and/or produce alcohol
- Tourism operational license
- Health and hygiene license
- Tanda Daftar Usaha Pariwisata (TDUP) (or restaurant license) that valid for a period of 5 years, contingent on the Bali area.
- Intellectual property licenses required for playing either pre-recorded or live music.
Also read: Exploring the Types of Business Licenses in Indonesia
Required Documents for Restaurant License
- Complete application form
- Copy of IMB permit
- Pictures in color of business location
- Copy of company NPWP
- Copy of ID/Passport
- Copy of Environmental Impact Analysis AMDAL
- Copy of Company Article of Association
Also read: Top Food Startups in Indonesia
InvestinAsia can Help You to Open a Restaurant in Bali
For those daunted by the complex regulations and paperwork involved in starting a restaurant or open a company in Bali, InvestinAsia stands ready to assist in navigating this process efficiently. Check InvestinAsia’s F&B Business Launch page for more information.
Our team of experts will assist you with:
- PMA registration in Indonesia
- Indonesia Local PT PMDN Set Up
- Indonesia representative office set up
- Virtual office rent in Indonesia
- Business registration number in Indonesia
- Indonesian Business Licenses
- Indonesia Trademark Registration
If you have further questions or inquiries, you can start by contacting us for FREE consultation.
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