Bali Company Registration and Incorporation Service

State-Owned Company (BUMN)

• Public Company (PERUM)
• Liability Company (PERSERO)

Private-Owned Company (BUMS)

• Firma (Fa)
• Commanditaire Vennootschap (CV)
• Limited Company (PT/ Perseroan Terbatas) (PT PMDN & PT PMA)

Representative Office / KPPA

PT, PMA, and KPPA are all types of legal entities in Bali that can be used by foreign businesses. PT stands for Perseroan Terbatas, which is a limited liability company. PMA stands for Penanaman Modal Asing, which is a foreign investment company. KPPA stands for Kantor Perwakilan Perusahaan Asing, which is a foreign company representative office.
The main difference between PT and PMA is the ownership structure. PT can be wholly owned by Balins, while PMA must have at least 1% foreign ownership. KPPA does not have any ownership requirements.

The meaning of company incorporation is the formal process of establishing a separate legal entity for a new corporation, independent of its owners. In a wider context, incorporation refers to the process of registering a business with the state to establish it as a separate legal entity.

• Limited Liability Protection
• Enhanced Credibility and Professionalism
• Access to Capital and Financing Options
• Perpetual Existence
• Tax Benefits and Incentives

PT PMDN company requirements:

• 2 local shareholders
• 1 director
• 1 commissioner
• Projected investment value:
• Small-scale business: IDR 50 million
• Medium-scale business: IDR 500 million
• Large-scale business: more than IDR 10 billion
• It is acceptable to use virtual offices as a registered business address.

PMA company requirements:

• 2 shareholders
• 1 director
• 1 commissioner
• Investment plans must be at least IDR 10 billion for each company activity.
• Local registered address in a commercial building

KPPA requirements:

• Must hire a minimum of one chief representative officer.
• Chief representative officer cannot be director
• Local registered address in a commercial building

• Register the name of the company
• Request for Deed of Establishment
• Apply for the Domicile Certificate of the Company
• Acquire a tax registration number (NPWP)
• Obtain your business ID number (NIB)
• Submit any other relevant certifications or authorizations
• Acquire work visas
• Open a business bank account

For foreigners who want to invest in PT PMA in Bali, it must have a minimum investment of 10 billion Bali Rupiahs. Moreover, a minimum paid-up capital requirement of 2.5 billion Balin rupiahs is mandatory for foreigners seeking to establish a foreign-owned PMA company in Bali.

A PT can only be owned by Balin citizens following Balin law. However, foreigners can establish a company in Bali by making a partnership with locals to invest in PT PMA.

In Bali, the standard rate of corporate income tax (CIT) is 25%. Nonetheless, for the fiscal year 2020/2021, it is reduced to 22%. Besides, starting from the year 2022 and onward, it will be further decreased to 20%.

In Bali, companies are required to register all relevant information in the data registration system of the Ministry of Law and Human Rights (MoLHR) according to Article 29 of Law No. 40 of 2007 on Limited Liability Companies, as amended by Government Regulation in Lieu of Law on Job Creation No. 2 of 2022 ("Company Law").
MoLHR Regulation No. 41 of 2021 on the Organization and Work Procedures of the Ministry of Law and Human Rights designates the Directorate General of Administration of General Laws (AHU) to be responsible for handling administrative legal matters, including company registration. To facilitate public access to registered company information in Bali, AHU has developed an online public service platform called AHU Online, which can be accessed through the AHU website: https://ahu.go.id/.
AHU Online is a user-friendly platform that allows visitors to access information about companies registered under the Company Law in Bali. The platform is accessible through desktop or mobile web browsers and offers a search bar feature on its home page. To access the search page, visitors can click on the "Data Download AHU" button on the home page, which will redirect them to a search page dedicated to this purpose. Alternatively, visitors have the option to access the search page directly by using the following link: https://ahu.go.id/pencarian/profil-pt. Once they are on the search page, they can enter the name of the company they are interested in. If the search is successful, the platform will display relevant information about the company on a search result page.

A foreign founder can explore a PT PMA structure for an eligible commercial activity in Bali. The proposed ownership, KBLI, investment plan and operating address need to be reviewed before registration; a representative office is a different option when the intention is to establish a non-commercial presence.

A PT PMA may be considered for an eligible property-related or villa business, but incorporating the company does not itself grant land ownership or permission to operate accommodation. Have the proposed land rights, building use, business classification and any tourism approvals assessed for the actual project.

Start with the proposed ownership and business activity. A PT PMA may be appropriate for foreign-owned commercial operations, while a representative office serves a different, non-commercial purpose. Check the business classification, intended Bali address and sector-specific permissions before committing to an operating site.

Not necessarily. Company registration creates the entity and core documents in the selected package. The operating site, actual services and business classification may call for additional location, sector or other approvals. Those steps should be scoped separately for the business you plan to run.

You can ask about Bali virtual office options such as Canggu, ECCOS Living Plaza and Jimbaran Hub. Whether a virtual office suits your registration and operational needs depends on the activity and the address requirements applicable to that business.