Cost of Business Registration in Bali: Complete Breakdown

Understanding PT PMA: Your Only Option as a Foreigner

If you're a foreign investor looking to start a business in Bali, you must establish a PT PMA (Perseroan Terbatas Penanaman Modal Asing) - a foreign-owned limited liability company. This is the only legal structure available for foreigners and comes with specific capital requirements and registration costs.

Capital Requirements

Before diving into registration costs, understand the capital commitments required:

Total Investment Plan

You must declare a total investment plan of over IDR 10 billion (approximately USD 600,000). This amount is realized progressively over time - you don't need the full amount upfront.

Minimum Paid-Up Capital

IDR 2.5 billion (approximately USD 150,000) must be deposited into a corporate bank account at the time of incorporation. Important: This capital cannot be withdrawn for 12 months after incorporation.

Registration Costs Breakdown

Company Name Reservation: USD 300-1,000

This includes:

• Government filing fee: approximately IDR 200,000 (USD 12)

• Notary service fee for preparation and submission

• Processing of 3 name options through the Ministry of Law and Human Rights

First-Time Incorporation: USD 1,700-3,500

The core incorporation package typically includes:

• Deed of Establishment drafting and notarization

• SK Kemenkumham (legal entity decree) issuance

• NIB (Business Identification Number) activation through OSS

• Tax registration (NPWP) setup

• Standard articles of association

Mandatory Local Requirements

These costs are often overlooked but are essential:

• Resident Director (if you're foreign): USD 5,000-6,000

• Resident Commissioner: Starting at USD 5,000

• Registered Address/Virtual Office: USD 349-500 per year

• Corporate Bank Account Setup: USD 150-250

Total Incorporation Cost with Work Permit (KITAS)

When you add everything together, including your personal work visa:

Total estimated cost: USD 12,199-15,250

This includes company formation, all mandatory local requirements, and a work permit (KITAS) for one foreign director.

Post-Incorporation Permits and Licenses

Depending on your business sector, you may need additional permits. Costs vary significantly:

• Tourism licenses (travel agency, tour operator): USD 500-5,000+

• Import licenses (API-U, API-P): USD 300-1,200

• Building-use approvals (SLF): USD 500-5,000+

• Environmental permits (AMDAL, UKL-UPL): USD 700-5,000+

• Food and beverage licenses: USD 500-2,000

• Retail trading licenses: USD 300-1,500

Ongoing Compliance Costs

Running a PT PMA involves regular compliance obligations with associated costs:

Monthly/Quarterly Expenses:

• Tax reporting and filing: USD 80-300 per month

• Payroll administration: USD 50-150 per month

• BPJS (social security) administration: USD 50-100 per month

• Accounting and bookkeeping: USD 100-500 per month

Annual Expenses:

• Annual company report to OSS: USD 100-300

• License renewals: USD 200-1,000+ depending on permits held

• Annual tax return preparation: USD 300-1,000

• KITAS renewal (work permit): USD 1,500-2,500

Important Requirements to Know

A licensed Indonesian Notary must draft and legalize the Deed of Establishment. This cannot be done independently by foreign investors - you must work with a qualified professional.

Other key requirements:

• All company documents must be in Indonesian

• Directors must have KITAS to sign certain documents

• Bank account requires minimum deposit and corporate seal

• Some sectors have foreign ownership restrictions

Cost-Saving Tips

1. Compare service providers - Prices vary significantly between firms

2. Bundle services - Many providers offer discounts for complete packages

3. Plan your business activities carefully - Wrong KBLI codes mean costly amendments later

4. Consider starting with minimal licenses - Add permits as your business grows

5. Use virtual office services - Much cheaper than physical office space initially

How MyBali.biz Can Help

We provide transparent, competitive pricing for all business registration services in Bali. Our packages include:

• Complete PT PMA incorporation with all government fees

• Director and commissioner nominee services

• Virtual office address in prime Bali locations

• Work permit (KITAS) processing

• Ongoing compliance and accounting support

Contact us for a detailed quote tailored to your specific business needs. We'll provide a clear breakdown with no hidden fees.