How to set up your business in Bali

A 2026 Guide on How to Set Up Your Business in Bali

So, you’ve spent a few sunsets in Uluwatu or working from a café in Canggu and realized the “Island of the Gods” is more than just a vacation spot—it’s your next business headquarters.

The good news? Bali is more open to international entrepreneurs than ever. The realistic news? Indonesian bureaucracy is a marathon, not a sprint. If you’re planning to trade your flip-flops for a founder’s hat, here is the factual, no-fluff guide to setting up shop in 2026.

1. Pick Your Player: The Legal Structure

You can’t just “start” a business; you need a legal vehicle. For foreigners, there are two main paths:

1. PT PMA (Foreign-Owned Company): This is the gold standard. It allows for up to 100% foreign ownership (depending on your industry) and lets you sponsor your own residency visa (KITAS).
2. Local PT: This is a domestic company owned 100% by Indonesians. Some expats use “nominee” agreements here, but be warned: this is legally grey and risky. In 2026, the government is much stricter on “shadow” ownership.

The Big One: To open a PT PMA, you technically need a capital investment plan of IDR 10 billion (approx. $640,000 USD). You don’t need to drop this all on day one, but your “Paid-Up Capital” (the amount you actually transfer to the company bank account) must be at least IDR 2.5 billion.

2. The Paperwork Path

Once you’ve decided on a PT PMA, the steps look roughly like this:

1. Name Approval: Your company name must be at least three words (e.g., PT. Sunshine Tropical Ventures) and approved by the Ministry of Law.
2. Deed of Establishment: A local notary drafts your “Akta Notaris.” This is the DNA of your company, listing shareholders, directors, and your business activities (KBLI codes).
3. The NIB (Business ID): Everything goes through the OSS (Online Single Submission) system. You’ll get a NIB, which acts as your tax ID, import license, and general registration number all in one.
4. Tax Registration (NPWP): You’ll need a corporate tax number to open bank accounts and, well, pay taxes.
5. Official Link: OSS Website

3. Location, Location, Zoning

In Bali, you can’t just run a gym out of a villa tucked in a residential “green zone.”

1. Zoning (ITR): Before signing a lease, check the zoning. If the land isn’t zoned for “Tourism” or “Commerce,” you won’t get your operational licenses.
2. Building Permit (PBG): Ensure the building has the correct permits for your specific business type.
3. Where to check: Nation-wide: https://bhumi.atrbpn.go.id/ | Bali-specific location: https://gistarubali.id/

4. Visas and Staying Legal

Running a business on a tourist visa is the fastest way to get a one-way ticket out of the country.

1. Investor KITAS (E28A): If you are a shareholder and director of your PT PMA, you can apply for this 1 or 2-year residency permit.
2. Working KITAS: If you are an employee (not a shareholder), you’ll need a specific work permit.

5. Tax: Managing the “New” 2026 Rules

As of this year, Indonesia has fully rolled out the Coretax system, which makes tax reporting digital and much more transparent.

1. Monthly Reporting: Even if your company makes $0 in its first month, you must file monthly tax reports.
2. Quarterly Reports (LKPM): PT PMAs must report their investment progress to the BKPM (Investment Board) every three months. Miss these, and your licenses can be frozen.

6. Setting Up the Online Infrastructure

In 2026, the digital side of your business is just as regulated as the physical side. If you are selling services or products online within Indonesia, there are specific digital hurdles:

1. PSE Registration: Any business providing a digital service (website, app, or e-commerce) must register as a “Private Scope Electronic System Provider” (PSE) with the Ministry of Communication and Informatics (Kominfo).
2. Local Payment Gateways: To accept IDR payments seamlessly via QRIS (the ubiquitous local QR code system) or GoPay, you will need a local corporate bank account and an integration with a licensed payment gateway like Midtrans or Xendit. Stripe is not available yet in Indonesia (it’s on an invitation basis).
3. Domain & Hosting: If you want a .id or .co.id domain, you must provide your company NIB and Deed of Establishment to the registry. This adds massive local SEO authority and builds trust with Indonesian customers. For one stop shop, we recommend Hostinger, the hosting that Bali Best Motorcycle uses.
4. Data Privacy: Ensure your website’s terms of service comply with Indonesia’s PDP (Personal Data Protection) Law, which is strictly enforced as of 2026.

Final Pro-Tip: Hire a Fixer (The Good Kind)

Finally, there’s no shame in having assistance from someone who knows how to set up your business in Bali. Trying to navigate the OSS system or the tax office alone is a recipe for a headache. Find a reputable legal consultant or “agent.” Ask for recent references and avoid anyone promising “shortcuts”—in 2026, the digital systems make shortcuts almost impossible and very easy to track.

Bali is an incredible place to build something, provided you respect the local laws and the quirks, such as “Jam Karet” (rubber time) culture.

Ready to start the process?