There are many very attractive advantages for doing business in Bali for the many foreign nationals that operate business here. If you were to take a survey among the expats/foreign nationals already working and living here you would get varied reasons why they set-up their businesses on Bali. However, for most it's the easy going life-style, the warm climate and people, the beach, the nightlife, (the girls for some ha ha), the low cost of living, the low cost of labour/staffing AND maybe the number one reason being 'NO' or low tax payments for Bali business operations. Very few small business owners (local and foreign) pay tax on their incomes.
However, there is NOTHING 'easy-going' about obtaining business licensing, along with the legal right to conduct business here on Bali. Most government interactions here are inefficient, expensive, lengthy, complicated AND 'frustrating'. However, forming a Indonesian company (PT/PMA) and obtaining correct business licensing is arguably the most complicated and difficult government process of them all.
It is also very important to note that the police and immigration department are both very active and very successful in seeking out illegal/unlicensed business operations (owned by both foreign and Indonesian nationals). To be investigated, let alone to be prosecuted for unlawfully working or operating business in Bali is a very serious situation that leads to very negative consequences, that often includes imprisonment and deportation for foreign nationals.
If you opt to follow Indonesian law you will be seeking to obtain a PMA Company/License to operate your Bali business as a foreign owner. However, while PMA Company registrations allow direct foreign ownership in the sole name of the foreign national owner, 100% ownership is limited to only 'Restaurants and Import/Export' businesses. All other types of Bali business must award varying share values to an Indonesian national. This is often overcome using an Indonesian national as a 'nominee' or 'name only' shareholder. However, using a nominee is the same secure method used when setting up PT Companies that are infact fully owned by foreign nationals. So, unless your planning on setting up a Bali Restaurant or Import/Export business you would still need a nominee (name-only shareholder) if you are not partnering with an Indonesian national.
Key points for PMA Company/Bali Business License: Direct foreign business ownership in the name of foreign national owner. For all business models other then Restaurants and Import/Export operations, a nominee (name-only) part owner (shareholder) must be used if not partnering with an Indonesian national. More expensive, complicated and longer completion times to produce. Government controls and attention regarding operations and tax compliance/payments. Restricted operations license. Future risk of increased complications and restrictions is expected due to current government policy regarding foreign owned companies.
Key points for PT Company/Bali Business License: The most common and preferred Indonesian company structure to operate Bali businesses owned in part or fully by foreign nationals. 100% full ownership and control securely achieved through the use of nominee (name-only) contracts/agreements (similar to those commonly used to overcome foreign ownership property laws). Lowest cost, faster and less complicated to complete company/business license formation. Government interference and tax audits highly unlikely. Broad business licencing, for multiple business options and operational flexibility. Most recommended for future security of business operations, assets, foreign national visa availability and limited liability for foreign nationals.
We have been serving the Bali Expat community and foreign nationals with Bali legal, Bali visa and Bali business services for over 16 years. We have a long history of successful legal and business dispute outcomes for our clients. However, the bulk of our time is spent obtaining Bali business licensing and the forming of Bali business company registrations, that legalise our client's Bali business investments, secure business operations and ensure secure asset protections. We can supply many satisfied client recommendations and references for Bali business services upon request.
All our Bali business service clients are issued with a secure client service contract. The service contract details the services to be provided and the fully inclusive service fees. The most important and vital client feature in our standard service contract states that under no circumstances will we, the service provider request additional payments or fees. Be very wary of persons or 'agents' offering to supply company formations and business licensing services for very low rates. Many unlicensed agents have developed a very dishonest approach of securing sales by offering very low service fees, only to later request additional funds to complete promised services. We no longer work with such agents due to the misleading method of sales they use and the resulting anger and upset their victims all suffer.
Please contact us for more information and Bali business/immigration consultations TODAY.
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