Setting Up a Business in Bali 2026: PT PMA Guide for Dubai Expats

Key Points

Business Structures for Foreign Entrepreneurs

01

PT PMA (Foreign-Owned Company)

100% foreign-owned Indonesian company. Required for most business activities. Minimum paid-up capital varies by sector ($70K-$1.2M). Full legal entity with work permits.

02

PT (Local Partnership)

Joint venture with Indonesian partner. Required for restricted sectors. Lower capital requirements. Complex relationship management needed.

03

Virtual Office + Freelance

For remote workers not doing business IN Indonesia. Use your Dubai/other entity. No Indonesian company needed. Limited to remote foreign work.

04

KITAS + Representative Office

For foreign companies wanting Indonesian presence without full PT PMA. Limited activities (marketing, liaison only). No direct revenue generation.

At a Glance

PT PMA Setup Process

Step	Action	Timeline	Cost (USD)
1	Company name reservation	1-3 days	Included
2	Deed of establishment (notary)	3-5 days	$500-1,000
3	MHAHR registration	5-10 days	Included
4	Tax ID (NPWP)	3-5 days	Included
5	OSS/NIB license	5-10 days	$300-500
6	Business license (specific)	10-30 days	$500-2,000
7	KITAS for director	30-45 days	$1,500-3,000
8	Bank account opening	7-14 days	$100-300
TOTAL	2-3 months	$3,000-$7,000

1

01

ActionCompany name reservation
Timeline1-3 days
Cost (USD)Included

2

02

ActionDeed of establishment (notary)
Timeline3-5 days
Cost (USD)$500-1,000

3

03

ActionMHAHR registration
Timeline5-10 days
Cost (USD)Included

4

04

ActionTax ID (NPWP)
Timeline3-5 days
Cost (USD)Included

5

05

ActionOSS/NIB license
Timeline5-10 days
Cost (USD)$300-500

6

06

ActionBusiness license (specific)
Timeline10-30 days
Cost (USD)$500-2,000

7

07

ActionKITAS for director
Timeline30-45 days
Cost (USD)$1,500-3,000

8

08

ActionBank account opening
Timeline7-14 days
Cost (USD)$100-300

TOTAL

09

Action2-3 months
Timeline$3,000-$7,000

Key Points

Best Business Sectors for Dubai Expats in Bali

01

Tourism & Hospitality

Villa management, tour operations, luxury experiences, F&B. Bali's core economy. High competition but massive market.

02

Digital Services

Marketing agency, SaaS, consulting, e-commerce. Low overhead, global clients. Growing co-working ecosystem supports this.

03

Real Estate

Property management, development consulting, villa rentals. Leverage Dubai real estate experience. Growing market.

Overview

Tax Obligations

Indonesia has a territorial-becoming-worldwide tax system. PT PMA companies pay 22% corporate tax on net profits. Personal income tax for KITAS holders is progressive: 5% on first IDR 60M up to 35% above IDR 5B. VAT of 11% applies to most goods and services. While not "tax-free" like Dubai, the dramatically lower cost base means your effective tax burden relative to lifestyle is often comparable or better.

Good to Know

Frequently Asked Questions

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Can I run my Dubai business remotely from Bali?

Yes. If you maintain your Dubai entity and work remotely, you don't need an Indonesian company. Use a Digital Nomad Visa or Second Home Visa. Ensure your Dubai visa/company status is properly maintained.

What's the minimum investment for PT PMA?

Varies by sector. General trading: $70K paid-up capital. Tourism: $70K-$150K. Technology: $70K. Some sectors have higher requirements. The investment must be demonstrated via bank deposit.

How do I handle employees and payroll?

PT PMA companies must comply with Indonesian labor law: minimum wage, social security (BPJS), annual leave, and severance provisions. Use a local accountant familiar with expat businesses.

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