Best Business Lawyers in Bali

1. About Business Law in Bali, Indonesia

Bali follows Indonesia’s national business law framework, with local agencies handling province and regency level licensing. Businesses must comply with corporate, investment, employment, and civil law across both national and local authorities. The province uses Bali specific licensing channels through DPMPTSP for many operations, in coordination with OSS for online filings.

Key national statutes shape most business activities, including corporate governance for PTs (Perseroan Terbatas) and the investment regime. The Omnibus Law on Job Creation and the Online Single Submission system have restructured how licenses are issued and monitored. These changes aim to simplify entry, but careful compliance remains essential for Bali operations.

The Online Single Submission OSS system centralizes licensing and investment processes across Indonesia.

Source: OSS - Online Single Submission

2. Why You May Need a Lawyer

Starting a business in Bali often involves complex choices about corporate form, foreign ownership, and local licensing. A lawyer helps ensure your structure aligns with national and Balinese rules while minimizing risk of later disputes or penalties.

• Starting a PT PMA in Bali requires careful structuring to meet foreign ownership limits, appoint appropriate directors, and prepare capital and shareholder documentation for OSS and local regulators.
• Negotiating a joint venture with Balinese partners or navigating a local partnership requires clear drafting of terms, allocation of rights, and exit mechanisms to prevent future conflicts.
• Tourism and hospitality ventures typically need multiple licenses from DPMPTSP or regency authorities, plus compliance with local zoning, environmental, and employment rules.
• Due diligence for an acquisition or transfer of a Bali-based business involves reviewing contracts, licenses, labor obligations, and potential liabilities before closing.
• Employment and labor compliance for Bali staff requires tailored contracts, wage rules, and safety obligations under Indonesian Manpower Law and relevant regulations.
• Intellectual property protection for Bali brands or tourist services benefits from early filing and monitoring to prevent unauthorized use by local competitors.

3. Local Laws Overview

Undang-Undang No. 40 Tahun 2007 tentang Perseroan Terbatas (PT)

This law regulates the formation, governance, and responsibilities of Limited Liability Companies in Indonesia. Bali businesses operating as PTs must comply with its articles, board duties, and shareholder rules, with amendments affecting governance and capital structures.

Recent changes are influenced by the Omnibus Law on Job Creation, which updates certain corporate and licensing processes. See official sources for current text and implementing regulations.

Undang-Undang No. 11 Tahun 2020 tentang Cipta Kerja (Omnibus Law)

The Cipta Kerja Act broad changes to licensing, investment, and business entry across Indonesia, including Bali. It emphasizes streamlined approvals and integrated processes via OSS. The law entered into effect in 2020, with implementing regulations phased in through 2021 and beyond.

Omnibus Law aims to simplify business licensing and attract investment through an integrated OSS framework.

Source: OSS - Online Single Submission, BKPM

Undang-Undang No. 25 Tahun 2007 tentang Penanaman Modal (Investment) - dengan pembaruan melalui UU No. 11 Tahun 2020

Investment law governs how foreign and domestic capital may participate in Indonesian business. It outlines registration, licensing, and sector-specific rules for activities in Bali. It is now coordinated with the omnibus reforms under Cipta Kerja, with OSS as the primary portal for licensing.

For local implementation, Bali relies on national investment policies implemented via OSS and Bali’s DPMPTSP for provincial and regency licensing requirements.

For further context on the national framework, see official government resources on investment and licensing in Indonesia: BKPM and OSS.

4. Frequently Asked Questions

What exactly is a PMA and when is it required for foreign investment in Bali?

A PMA is a foreign investment company or PT PMA. It is required when a foreign investor owns shares above the limits for PMDN or wants to operate in sectors with foreign ownership rules. A lawyer can confirm if PMA is necessary for your project.

How do I register a new PT in Bali using the OSS platform and what documents are needed?

You file the essential corporate data, provide shareholder information, and upload documents such as a deed of establishment and identification papers. A local attorney can prepare and organize documents to avoid delays.

What are the typical local licenses required for a hotel or resort business in Bali?

Hospitality ventures often require provincial and regency permits through DPMPTSP, as well as sector-specific licenses, land use approvals, and environmental clearances. A lawyer helps map the exact set for your site.

How long does it usually take to obtain a business license in Bali from OSS filing to approval?

Processing can range from a few weeks to several months, depending on sector, location, and completeness of documents. A lawyer can expedite by ensuring accurate filings and compliance.

Do I need a local Balinese partner or director to start a business in Bali?

Foreign ownership rules vary by sector and business form. In some cases, a local director or partner may be required or advantageous. A lawyer can advise on structure and disclosure requirements.

What is the difference between PMA and PMDN for a Bali operation?

PMA allows foreign ownership under certain conditions, while PMDN is for Indonesian domestic investment with stricter local ownership rules. The choice affects licensing and capital requirements.

Can a foreign investor own a majority stake in a Bali hospitality business under current law?

In many sectors, foreign majority ownership is restricted or subject to special licenses. A Bali-based attorney can assess sector rules, regulatory changes, and licensing paths.

Should I hire a lawyer to draft a joint venture agreement with a Balinese partner?

Yes. A lawyer ensures clear terms, risk allocation, dispute resolution, and exit provisions. This helps prevent misunderstandings and litigation down the line.

Do you need to file for annual reports and tax registrations after company setup in Bali?

Yes. Indonesian companies must file annual financial statements, tax returns, and periodic reports. A lawyer or CPA can coordinate deadlines and compliance steps.

How much does it cost to hire a Bali-based business attorney for initial setup and licensing?

Costs vary by firm, project complexity, and sector. Typical engagements include a setup fee plus hourly or milestone-based billing for licensing work.

What steps are involved in due diligence when acquiring a Bali-based company?

Due diligence covers contracts, licenses, employment agreements, tax status, and pending disputes. A lawyer coordinates data rooms and confirms regulatory compliance.

Is arbitration a preferred method for resolving disputes with Bali suppliers or partners?

Arbitration is commonly used for commercial disputes in Indonesia, including Bali. It can provide neutrality, confidentiality, and predictable timelines.

5. Additional Resources

• Badan Koordinasi Penanaman Modal (BKPM) - The Investment Coordinating Board coordinates investment policies, licensing, and investor guidance at the national level. https://www.bkpm.go.id
• OSS - Online Single Submission - The government portal for integrating and tracking business licensing and investment applications. https://oss.go.id
• Directorate General of Taxes (DJP) - Tax Registration and Compliance - National tax authority for corporate tax, VAT, and related filings. https://www.pajak.go.id

6. Next Steps

1. Define your Bali business model and choose the appropriate form (PT PMA, PMDN, or other). Estimate required capital and ownership structure with a lawyer within 1 week.
2. Identify required licenses and registrations through OSS and Bali DPMPTSP. Obtain a preliminary licensing plan within 2 weeks of decision.
3. Engage a Bali-based business attorney to prepare documents and supervise filings. Schedule an initial meeting within 3-5 days of selecting counsel.
4. Prepare and compile corporate documents, shareholder agreements, and board resolutions. Have your lawyer review everything for accuracy and compliance.
5. Submit filings via OSS and local authorities. Track progress weekly and respond to any requests for additional information within 5-10 days per cycle.
6. Complete tax registrations and employment compliance steps, including NPWP registration and payroll obligations. Plan for ongoing annual reporting and audits.
7. Implement ongoing compliance and dispute-resolution strategies, including contract management and clear governance policies. Schedule annual reviews with your legal counsel.