Bali continues to be a strong attraction center for entrepreneurs in tourism, wellness, creative industries, and digital services in 2026. However, the idea of “establishing a company in Bali” is based on much more technical grounds than the bright success stories on social media: choosing the right type of company, accurately defining the activity code (KBLI), meeting the capital threshold, obtaining licenses flawlessly through OSS-RBA, and then regularly managing tax/reporting obligations.
This guide clarifies the real steps for foreigners to establish a company in Bali from a 2026 perspective, critical decision points, and common mistakes. The goal is not to “quickly open a company” but to establish a sustainable structure with a non-freezing license, settled banking and tax side.
Why has it become harder to establish a company in Bali? (Real need: license and compliance)
Establishing a company in Indonesia is no longer just about signing a contract at a notary. As of 2026, the most critical issue for foreign capital structures is the capital and activity verification of the OSS-RBA system and the licensing obligations that vary according to the business line you choose.
The common risk seen in the field, especially in Bali, is this: The establishment is completed on paper; however, due to KBLI (activity code) – capital mismatch or incorrect license structure, operational permits may be delayed or suspended in the system. This effectively locks the banking, invoicing, hiring, and contracting processes.
Types of companies for foreigners: PT PMA or representative office?
1) PT PMA (Foreign-Owned Company) – the most common structure
The standard solution for foreigners who want to do business by generating income in Bali is the PT PMA (foreign-owned company) model. This structure allows for 100% foreign ownership establishment within the framework of legislation and sector compliance and stands out as the most preferred format for international entrepreneurs in practice.
- Advantage: Can generate income, issue invoices, employ workers, open a bank account, and supports the path to investor residency (KITAS) under certain conditions.
- Attention: Capital threshold and KBLI selection are the most critical issues. The licensing process may extend in case of incorrect structure.
2) KPPA / Representative Office – research and presence without generating income
For foreigners who want to test the Indonesian market, conduct research, and be legally present in the country (but will not generate income within Indonesia), there is the KPPA / Representative Office alternative. This structure can be converted to PT PMA under certain conditions later.
- Advantage: Helps carry out steps like understanding the market, business development, and meeting with local stakeholders with lower operational complexity.
- Limitation: There are limits on generating income and conducting commercial activities.
2026 capital plan: 10 billion IDR threshold and KBLI effect
The most misunderstood issue in establishing PT PMA is the “minimum capital.” In practice, the common reference for PT PMAs is a minimum investment threshold of 10 billion IDR, which may vary according to the company’s structure and sector classification. Additionally, the capital requirement is directly related to the number and content of the KBLI you choose.
- Selecting a single KBLI keeps the minimum threshold manageable in most scenarios.
- Declaring multiple KBLI may increase the capital requirement. For example, cases are seen where the threshold progresses with a logic similar to 20 billion IDR for 2 KBLI.
- Some sources also share different references like 2.5 billion IDR per activity; however, in practice, the 10 billion IDR threshold is closer to the standard for PT PMA applications.
This capital structure is explicitly stated in the notary establishment deed. After the company bank account is opened, the capital must be invested and documented. The critical point here is to plan in compliance with banking and OSS verification without leaving the capital “on paper.”
Partnership and management structure: 2 partners, director, commissioner
You can consider the basic organizational requirements for PT PMA as follows:
- At least 2 shareholders are required. Shareholders can be foreign individuals, foreign legal entities, or a local-foreign hybrid structure.
- At least 1 director and at least 1 commissioner are required.
- Roles can be structured differently on a person basis; however, correctly structuring job descriptions and signature authorities saves time in banking and contracting processes.
An important detail: If the director is a foreign national, practically, the NPWP (tax identification number) and KITAS (limited stay permit) requirements come into play. At this point, the company establishment and immigration/residency plan should be considered together; otherwise, the management authority may practically be blocked.
Documents required for establishment: 2026 checklist
Shareholder and manager information
- For foreign shareholders, passport scans and identity/contact information
- If there is a company shareholder, the relevant corporate legal documents
- If there is an Indonesian partner, KTP and NPWP
Company information (name, activity, capital, contract)
- Company name: Must be distinctive; the rule of at least 3 words (in English or Indonesian) and system approval requirements come into play. Punctuation marks may create notice risks.
- KBLI (activity code): The most critical option. Defining multiple activities may increase the capital threshold; incorrect KBLI may delay or freeze the license.
- Capital structure: The registered/issued/paid-up capital plan must be clear.
- Articles of Association: In practice, preparing a bilingual (Indonesian-English) draft facilitates process management.
Address and office requirements (critical: residential address is not allowed)
The registered address of the PT PMA must be commercial. Proceeding with a residential address leads to risky outcomes in most scenarios. While virtual office is possible in some business models, it must be compatible with your activity.
- Building address on Google Maps
- Building photos
- Lease agreement
- Land/property certificate
- Building permit documents like IMB (construction/permit document)
Additional documents
- Detailed business plan
- Investment plan / capital declaration
- Power of attorney for notary processes (especially for remote establishments)
Step-by-step process of establishing a company in Bali (PT PMA) – 2026
1) Establishment with a notary: Deed of Establishment
In the first step, the company’s name, address, KBLI activity code(s), capital structure, shareholders, director/commissioner information are communicated to the notary. The notary prepares the establishment deed and the articles of association and submits them electronically to the relevant authorities.
2) Ministry approval: acquisition of legal entity status
The establishment deed is reviewed by the Ministry of Law and Human Rights. After approval, your company gains legal entity status.
3) Obtaining NPWP (Tax Identification Number)
The NPWP registration is made for the company’s tax identity. This step is a fundamental requirement in invoicing and many operations.
4) OSS-RBA application: obtaining NIB and basic licenses
Then the process proceeds through OSS-RBA (Online Single Submission – Risk Based Approach). Typically, you receive the following outputs from OSS:
- NIB (Nomor Induk Berusaha): Business identification number; in many scenarios, it combines functions like business license/import registration/customs registration.
- Business Profile: Your company profile registered in the OSS system
5) Sectoral (operational/commercial) licenses
Additional permits are required according to your field of activity. For example, operational licenses in trade, construction, health, e-commerce, or specific service areas are completed through OSS or relevant institutional processes. At this stage, the accuracy of KBLI determines the speed and sustainability of the license.
6) Domicile registration, bank account, local tax file
Local registrations are made for the company address, and a corporate bank account is opened in Indonesia. Local tax file requirements like NPWPD may also arise from the district/region revenue office. Capital investment and documentation steps become clear after the bank account is opened.
Critical check in OSS-RBA: KBLI-capital verification (error that freezes the license)
The most critical breaking point in 2026 is this: OSS-RBA checks whether the capital level you declared is sufficient for the KBLI activity codes you selected. If the capital appears insufficient, the licensing process may be delayed or suspended in the system.
Therefore, the approach of “we will correct it later” often becomes costly. Before the establishment, clear answers must be given to these two questions:
- What activities will I actually perform, and what is the correct KBLI for this?
- Is my capital plan and investment declaration compatible with OSS logic for this KBLI set?
Obligations awaiting you after establishment: tax, reporting, and employment
Once the company is established, the “real” part of the job begins: compliance and reporting. Companies in Indonesia have regular monthly tax reporting obligations; items like VAT (Value Added Tax) come into play depending on the type of activity.
- Tax compliance: Monthly declarations and periodic reports; incorrect/incomplete reporting can create fines and operational risks.
- Employment: Local employees, foreign employee/resident plan, and payroll processes require different disciplines.
- Banking and contracts: If the authority/signature structure is not correct, transaction times practically extend.
Timeline in 2026: is remote establishment possible?
The process can be managed while being outside Indonesia with the right documentation and power of attorney structure. However, the most common reasons for delays in files progressing remotely are:
- Incorrect selection of KBLI or contradictory writing of the scope
- Missing or activity-incompatible address/office documents
- Capital plan not meeting OSS-RBA verification
- Synchronization issues between director’s residency/NPWP requirements and company calendar
Corpenza approach: managing company + tax + mobility in one picture
Considering the company establishment in Bali only as a “establishment file” is risky in the reality of 2026. For a robust structure, it is necessary to integrate company formation, international tax and accounting, payroll/employment, and residency-mobility topics together.
Corpenza thinks through the process end-to-end with an international business development perspective: selecting the right type of company (PT PMA vs representative office), KBLI strategy and capital plan, post-establishment tax/reporting order, roadmap for investor or management residency, and accounting/payroll architecture compatible with your global operations when necessary. The aim is not a quick establishment but to create an audit-ready, scalable, and compliant Indonesian operation.
Conclusion: Establishing a company in Bali is not just about filling out forms; it is a strategic business
Establishing a company in Bali in 2026 proceeds smoothly when the correct KBLI selection, proper management of capital thresholds, OSS-RBA licensing flow, and post-establishment tax compliance are considered together. The key factor that makes the biggest difference is designing the process as operational sustainability rather than a “one-time application.”
Disclaimer
This content is for general informational purposes; it does not constitute legal, financial, or tax advice. Regulations and practices may change within 2026, and there may be differences in interpretation. We recommend verifying current official requirements before applying and obtaining professional support suitable for your situation.
