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.
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What you'll get
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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
- Conduct a general shareholder meeting to approve the liquidation and the liquidator’s nomination
- Notify the Ministry of Law and Human Rights as well as the creditors of the liquidation and the distribution plan for the assets by newspaper notice
- All business licenses and tax numbers should be canceled or revoked; the tax office will conduct a tax audit to revoke the tax number
- Make sure creditors are paid and that any liquidation funds are distributed to shareholders (if any)
- Conduct a general meeting of shareholders to approve the liquidator’s discharge and acquittal
- Notify the Ministry of Law and Human Rights of the liquidation’s outcome. After receiving the notification, the Ministry of Law and Human Rights will deregister the company’s status as a legal entity and remove its name from the Company Registry
- Release the liquidation’s outcome in a newspaper
For tax purposes in Indonesia, companies must maintain their books in Rupiah, using the Indonesian language, and store them within the country. Exceptions for using USD and English in bookkeeping require prior notification to the authorities and any use of languages other than Indonesian needs approval from the Ministry of Finance.
The procedures for (voluntarily) liquidation typically involve the following steps:
Completing the liquidation process can take around two years.
Investors considering investments in Indonesia should assess existing International Investment Agreements between Indonesia and other countries. Having a business presence in countries with such agreements may offer incentives like stronger investment protection and higher foreign shareholding in Indonesia.
Yes, PMA companies in Indonesia can hire expatriates, but certain positions are restricted by the Ministry of Manpower. Expatriates need both working and stay permits, and employers must employ Indonesian counterparts for each expatriate employee, typically at a ratio of at least one Indonesian counterpart per expatriate.
