Doing business in Bali has become increasingly attractive to foreign entrepreneurs. The island’s stunning natural beauty, vibrant culture, and growing economy offer a unique blend of lifestyle and opportunity.
Whether you’re drawn to the tourism industry, wellness, spirituality, or sustainable ventures, Bali presents a diverse range of profitable business sectors.
Why open a business in Bali?
Situated strategically in Southeast Asia and thriving with tourism, Bali provides fertile ground for diverse business opportunities. Its global reputation as a tourism hub draws millions of visitors yearly, ensuring a consistent flow of potential clients.
With a vibrant expatriate community, Bali offers a dynamic business environment that facilitates integration and success for newcomers.
Can foreigners own a business in Bali?
While foreigners cannot directly own land in Indonesia, there are legal structures through which businesses can operate. The most common is a limited liability company (PT), where foreigners can hold a majority stake.
However, navigating the legal and bureaucratic landscape can be complex, making professional guidance essential.
How much does it cost to start a business in Bali?
The cost of starting a business in Bali varies significantly based on the industry, business size, and chosen legal structure. Factors such as permits, licenses, office space, and staffing contribute to overall expenses.
While starting with a limited budget is possible, proper financial planning is important for long-term success.
10 most profitable businesses in Bali to start
Bali attracts over 6 million visitors annually with its unique culture, stunning beaches, lush landscapes, and top-notch services. If you’re eyeing business opportunities in Bali, here are some profitable roads to consider:
1. Hospitality and tourism
Businesses in Bali offering accommodations in natural settings, diverse cuisine, and unique tours cater to Bali’s extensive tourism market. Standout businesses focus on stylish design, smooth operations, competitive pricing, and great customer service to attract and retain customers.
2. Green tourism and sustainability
Bali’s natural beauty and a strong commitment to sustainability have positioned the island as a prime destination for eco-tourism ventures. Eco-resorts, sustainable agriculture, and environmentally friendly transportation are flourishing green businesses.
3. Wellness and spa
Bali’s wellness tourism industry presents lucrative opportunities for entrepreneurs to offer holistic retreats, yoga programs, and authentic spa experiences.
4. Organic farming and agriculture
Bali’s growing appetite for organic and locally grown food has created a fertile ground for agricultural entrepreneurs. From cultivating fresh produce to crafting artisanal food products, the island’s tropical climate and rich soil provide ideal conditions for sustainable farming ventures.
5. Traditional crafts and artisanry
Bali’s rich artistic legacy fuels a vibrant handicraft industry. Entrepreneurs can thrive by showcasing and retailing traditional crafts, including intricate wood carvings, exquisite textiles, and distinctive pottery, appealing to both local enthusiasts and global markets.
6. Retail and fashion
Bali’s vibrant atmosphere makes it ideal for fashion and retail ventures. Opportunities range from bohemian-chic clothing stores to upscale beachwear boutiques and handicraft markets.
Read more: Brand trademark registration guide for cosmetics & fashion industry in Bali
7. Real estate and property
Bali’s real estate market offers opportunities in luxury villas, eco-resorts, and rental properties catering to long-term stays. There’s a growing demand for eco-friendly designs, smart home technologies, and amenities that support remote work lifestyles.
8. Digital nomad hub
With its favorable climate and infrastructure, Bali is a hotspot for digital nomads seeking coworking spaces and community-driven environments. Businesses supporting remote workers with innovative coworking spaces, services, and community-building activities are in demand.
9. Food & beverage exports
Bali’s fertile soil and tropical climate support the growth of coffee, cacao, fruits, coconut sugar, and spices that are highly sought after globally.
Export opportunities exist for high-quality, locally sourced products like chocolates, beauty products, and natural foods, tapping into the wellness and health food industries worldwide.
10. Water sports and adventure tour
Bali’s stunning coastline and crystal-clear waters create a thriving water sports and adventure tourism environment. Businesses can capitalize on this by starting a water sports center or adventure tour company.
How to start a business in Bali for foreigners
If you find Bali attractive for investment, you may be contemplating how to start the best business in Bali. Here are the guidelines for foreigners:
1. Select a business activity
Begin by choosing a business activity that aligns with your interests and objectives. It’s essential to consult the Investment Coordinating Board (BKPM) website, which lists permitted business activities for foreigners in Indonesia.
2. Determine the legal structure
Foreigners in Indonesia have two main options for structuring their business:
- PT PMA (Foreign-Owned Limited Liability Company): This option allows full ownership employment of foreigners and facilitates business visa sponsorship.
- CV (Limited Liability Partnership): This type of partnership is less common and requires at least two shareholders, one of whom must be an Indonesian citizen.
3. Register your business
Once you’ve chosen your legal structure, you can register your business with the Ministry of Law and Human Rights in Bali, either online or in person at their office. Consider using InCorp’s service to ensure a smooth registration process.
4. Obtain a business license
To operate legally, obtain a business license from the local government. Explore InCorp’s services for Business License to gain more guidelines.
5. Obtain a Tax Identification Number (NPWP)
Acquire a Tax Identification Number (NPWP) for effective tax management from the nearest tax office. This step is crucial for ensuring financial compliance.
6. Open a business bank account
Establish a dedicated business bank account, ensuring you have obtained your NPWP beforehand, as it is a prerequisite for this process.
7. Secure a business visa
If you intend to work within your business, securing a business visa from the Indonesian Immigration Office is mandatory. This visa ensures adherence to Indonesia’s regulatory framework.
Tips for starting a business in Bali for foreigners
To ensure a smooth process for setting up your business in Bali, consider the following tips:
1. Conduct thorough research
Invest time in understanding Indonesia’s business landscape. You can focus on regulations, tax requirements, and local customs to avoid unexpected challenges.
2. Engage professional assistance
For those unfamiliar with Indonesia’s business environment, consider engaging a lawyer or accountant experienced in local practices. InCorp, with extensive market entry experience, can guide you through legal complexities and ensure compliance.
3. Build local connections
Networking with Bali-based businesses can offer valuable insights and support. Attend local events and engage with business communities to establish beneficial relationships.
4. Practice patience
Launching a business in a foreign country presents challenges, but perseverance is key to success. Embrace the learning process and maintain dedication to your objectives.
Start your business in Bali with InCorp
Bali offers exceptional business opportunities if you are considering establishing a business there. InCorp Indonesia can simplify doing business in Bali with:
- Company registration: Let us handle the complexities of setting up your business entity in Bali.
- Bali properties: List your property with us or find the perfect villa for your stay from our curated selection of Bali properties.
Our consultant will guide you through the complexities of local regulations, guaranteeing compliance with all standards. Click the button below to take full advantage of this vibrant destination’s lucrative opportunities.
Get in touch with us.
What you'll get
A prompt response to your inquiry
Knowledge for doing business from local experts
Ongoing support for your business
Disclaimer
The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.
We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.
Verified by
Ales Cina
Consulting Manager at InCorp Indonesia
Aleš manages solution delivery at InCorp Indonesia, optimizing incorporation processes and client relationships. His experience in internal auditing, retail, and sales offers valuable global insights. Aleš, with a degree in Economics and Finance from the Czech Republic, helps clients navigate cross-border business challenges, focusing on cultural and legal insights.
Frequently Asked Questions
- Import facilities
Investors in Indonesia, particularly in manufacturing, may benefit from import tax exemptions for capital goods and raw materials through the Master List Facility. The imported goods must meet specific criteria, such as not being produced locally or not meeting industry demand despite local production. - Tax holiday
The government offers CIT reductions of 50% or 100% for 5–20 years for listed pioneer industries, based on investment value. After this period, a CIT reduction of 25% or 50% applies for two fiscal years. Non-listed sectors can also apply by meeting criteria demonstrating pioneer industry status. - Tax allowance
For companies in certain designated areas or regions, the government may provide the following tax concessions:
Net income reduction up to 30% of the amount invested, prorated at 5% annually for six years, on condition that the assets invested are retained for the same duration.
Accelerated depreciation and/or amortisation deductions
An extension of tax losses carried forward for a maximum of ten years
A 10% (or lower if treaty relief is available) withholding tax rate on dividends paid to non-residents
The applicant eligible has to meet high-level-criteria for the above tax facilities:
High investment value or for export purposes
High manpower absorption
High level of local content - Investment allowance
The government offers a reduction in net income of up to 60% of the investment, distributed at 5% annually over six years of commercial production, contingent upon the retention of invested assets for the same duration. To qualify, applicants must meet business line eligibility criteria and employ a minimum of 300 Indonesian workers in the project. - Super deduction
This facility could be granted to certain businesses, such as:
60% reduction in net income of the amount of tangible fixed assets invested for labor-intensive industries, distributed throughout a certain time frame.
Up to 200% reduction in the gross income of the amount spent for human resources development in certain competency activities.
Up to 300% reduction in gross income of the amount spent for certain R&D activities in Indonesia. - Business Identification Number (NIB)
- Standard Certification
- Standard Certification is necessary for medium-low and medium-high-risk businesses
- Licenses/Permits
A newly established PMA company in Indonesia is typically provided with import facilities, tax holidays, tax allowances, or investment allowances.
Pioneer industries are industries that have a wide range of connections, provide additional value and high externalities, introduce new technologies, and have strategic value for the national economy.
To provide you with accurate pricing information for our product registration services, we consider the complexities of your inquiries and the dynamic nature of regulations in Indonesia. As a result, the pricing for the service may vary accordingly. For detailed information, don’t hesitate to contact our consultants.
In Indonesia, the licensing system has been updated with the implementation of the Omnibus Law. Businesses are categorized into four risk levels based on the PMA company classification. Licensing requirements vary accordingly, with three main types:
Low-risk businesses needing only an NIB
High-risk businesses require licenses/permits
Additionally, basic requirements, including business location, must be met. Many licensing processes are facilitated through the Online Single Submission (OSS) platform managed by the Investment Coordinating Board (BKPM).
Indonesian Company Law establishes a two-tier governance system with Directors managing day-to-day operations and representing the company, while the Board of Commissioners supervises and advises them. The articles of association may empower board of Commissioners to provide consent or assistance to Directors for specific legal acts.
