Can I Do Business In Bali Without Owning A Company?

Indonesia has strict rules about how you stay in country as a foreigner. Here’s some info if you want to start doing business in Bali.

As of my last update in January 2022, foreign ownership regulations can be quite restrictive, especially when it comes to doing business in Bali and other parts of Indonesia. However, there are several options available for foreigners to engage in business activities in Bali without directly owning a company:

  1. Investment through a Local Partner: Foreigners can establish a business partnership with Indonesian citizens or entities who will hold the majority share of the company. This often involves setting up a PT PMA (Perseroan Terbatas Penanaman Modal Asing), which is a limited liability company with foreign investment.
  2. Representative Office: Foreign companies can establish a representative office in Indonesia for specific purposes such as market research, liaison office, or coordination with local distributors. Representative offices, however, cannot engage in profit-generating activities.
  3. Working as a Freelancer or Consultant: Some foreigners choose to work as freelancers or consultants in Bali without formally registering a company. This can be feasible depending on the nature of the work and the duration of stay.
  4. Joint Ventures: Foreigners can enter into joint venture agreements with Indonesian companies or individuals to conduct business together. In this setup, profits and losses are typically shared according to the terms of the joint venture agreement.
  5. Nominee Structure: While not legal under Indonesian law, some foreigners attempt to circumvent ownership restrictions by using nominee structures. However, this approach can be risky as it may violate Indonesian law and could lead to legal consequences.

Before starting any business activity in Bali or Indonesia, it’s essential to consult with legal experts who are familiar with Indonesian regulations regarding foreign investment and business ownership. They can provide guidance on the most appropriate legal structures and help navigate the complexities of doing business in the country.