Best New Business Formation Lawyers in Bali

1. About New Business Formation Law in Bali, Indonesia

New Business Formation in Bali operates under Indonesian national law, with local implementation through Bali’s provincial and regency administrations. The legal framework prioritises one-stop licensing, transparent company structures, and clear requirements for both domestic and foreign investment. A key shift in recent years is the push to streamline licenses via the Online Single Submission system (OSS). This reform affects how businesses register, obtain permits, and maintain compliance in Bali.

For foreign and local investors alike, a central concept is the distinction between a local Limited Liability Company (Perseroan Terbatas or PT) and a foreign-owned PMA (Penanaman Modal Asing) PT. The Omnibus Law on Job Creation, enacted in 2020, is designed to simplify licensing and reduce the time and administrative burden of starting a business. Bali residents should expect licensing to follow national standards while also handling local site-specific requirements such as land use and zoning considerations.

OSS is Indonesia's one-stop licensing platform designed to streamline business permits and integrate related registrations at the national level. It supports electronic filing, status tracking, and unified data for regulators and business owners.

In Bali, the practical impact is that local counsel and lawyers often coordinate with national regulators to ensure compliance across PT and PMA structures, with attention to local land and employment laws. The objective is to facilitate legitimate investment while safeguarding local community and regulatory standards.

2. Why You May Need a Lawyer

Starting or expanding a business in Bali often involves complex regulatory steps that benefit from legal oversight. A skilled solicitor or lawyer can prevent common missteps and help you navigate both national and local rules.

• You plan to establish a PMA PT for a resort or tourism venture in Bali and need guidance on share structure, director requirements, and equity ownership in light of the Omnibus Law.
• You must obtain an NIB and business licenses via OSS for a Bali enterprise, and require help coordinating filings with BKPM and local regulators.
• You face land use, lease, or hak pakai arrangements for Bali property and need counsel to align lease terms with Indonesian land law and local zoning.
• You want to restructure an existing Indonesian company to PMA status, including board composition, capital declarations, and reporting obligations.
• You anticipate cross-border employment or work permit considerations for foreign personnel working in Bali and require compliance with local immigration and manpower rules.
• You need a notarial and corporate record system that meets Indonesian requirements for corporate governance and annual reporting, including changes in directors, commissioners, or shareholding.

3. Local Laws Overview

Two to three core laws shape New Business Formation in Indonesia and Bali, along with implementing regulations and local administrative processes. It is crucial to refer to official texts for precise requirements and updates.

• Undang-Undang Nomor 11 Tahun 2020 tentang Cipta Kerja (Omnibus Law) - introduces streamlined licensing, a unified registration system, and sector-based capital and licensing rules. Effective date: 2 November 2020. This law changes many provisions in earlier investment and company laws and requires integration through OSS.
• Undang-Undang Nomor 40 Tahun 2007 tentang Perseroan Terbatas (PT) - governs the formation, governance, and dissolution of Indonesian Limited Liability Companies. It was amended by the Cipta Kerja framework to align with the new licensing regime. Original enactment date: 16 August 2007.
• Undang-Undang Nomor 25 Tahun 2007 tentang Penanaman Modal (Investment) - sets general investment policy and incentives. It has undergone amendments through the Cipta Kerja process to harmonize with the new OSS framework. Original enactment date: 24 December 2007.

For precise text and latest amendments, consult official regulatory portals.

“The Cipta Kerja Omnibus Law consolidates and simplifies investment licensing by routing processes through OSS, reducing duplication and timelines for business formation.”

Additional practical guidance can be found through national and Bali-specific portals, including BKPM's investment guidance and OSS registration. The aim is to align Bali business formation with both national policy and local regulatory nuances.

4. Frequently Asked Questions

What is the difference between a PT and a PMA in Bali?

A PT is a locally registered limited liability company. A PMA is a PT with foreign investment and specific regulatory requirements. PMA status affects ownership structure, board composition, and licensing.

How do I start the Bali business formation process using OSS?

First, register with OSS to obtain the NIB. Then, complete licensing and registration steps for your specific business activities. This is followed by sectoral permits and stakeholder approvals as needed.

When can I expect approvals after filing in Bali?

Processing times vary by sector and regulator. Under the Cipta Kerja framework, OSS aims to shorten timelines, but local approvals may still take weeks to months.

Where can I file initial documents for a Bali PT or PMA?

Use OSS for initial registrations and the national regulator network. You may also interact with BKPM for investment approvals and with Kemenkumham for legal entity registration.

Why might I need a local director in a PMA?

Indonesian law typically requires at least one Indonesian citizen to hold a key management role in a PMA. This requirement supports governance and compliance.

How much does it cost to form a business in Bali?

Costs include notary fees, legal entity registration, administrative charges, and sector-specific licenses. Exact amounts depend on business type, capital, and regulatory steps.

Do I need a local partner to form a PMA in Bali?

Not always. A PMA can be 100% foreign-owned in many sectors, subject to sector regulations and licensing requirements. Some industries still require local partnerships or regulatory conditions.

Can foreigners own land or property for business purposes in Bali?

Direct freehold ownership by foreigners is generally not allowed. For business use, you may rely on lease arrangements, Hak Pakai or Hak Guna Bangunan, within regulatory limits and with proper counsel.

What is the difference between an attorney and a solicitor in Bali practice?

The Bali legal landscape typically uses terms like pengacara or advokat for lawyers. The distinction between attorney and solicitor is less formal in Indonesia; focus on bar membership and regulatory authority when choosing counsel.

Should I hire a Bali-based solicitor or attorney for formation?

Yes. Local counsel understands land, immigration, and local licensing peculiarities that national firms may not cover comprehensively.

Do I need to prepare for employee recruitment and Imta processes?

Yes. Work permits and skilled migration approvals (Imta) are often required for foreign staff; a legal adviser can coordinate with authorities to ensure compliance.

5. Additional Resources

Access to official government sources helps validate procedures and stay current with changes. The following organizations provide direct, authoritative information on New Business Formation in Indonesia and Bali.

• BKPM - Badan Koordinasi Penanaman Modal (Investment Coordinating Board). Functions include investment licensing, PMA approvals, and guidance on investment regulations. Website: https://www.bkpm.go.id
• OSS - Online Single Submission. The national portal for business licensing, registration, and NIB issuance. Website: https://www.oss.go.id
• Kemenkumham - Kementerian Hukum dan Hak Asasi Manusia. National authority for corporate legal entities, notary processes, and legal matters. Website: https://www.kemenkumham.go.id

Regulatory texts and official legal references can be accessed via:

• Undang-Undang Nomor 11 Tahun 2020 tentang Cipta Kerja (Omnibus Law) - text and updates: https://peraturan.go.id/uu/no-11-tahun-2020.html
• Undang-Undang Nomor 40 Tahun 2007 tentang Perseroan Terbatas - text and amendments: https://peraturan.go.id/uu/no-40-tahun-2007.html
• Undang-Undang Nomor 25 Tahun 2007 tentang Penanaman Modal - text and amendments: https://peraturan.go.id/uu/no-25-tahun-2007.html

6. Next Steps

1. Define your Bali business model and determine PT vs PMA suitability within the OSS framework. Timeline: 1 week.
2. Identify and consult a Bali-based solicitor or attorney with PMA experience. Gather references and discuss scope of work. Timeline: 1-2 weeks.
3. Prepare a document checklist including candidate company name, intended business activities, ownership structure, and directors. Timeline: 1 week.
4. Engage a Bali notary to draft the Articles of Association and corporate resolutions, ensuring alignment with Law No 40 of 2007 and amendments. Timeline: 1-2 weeks.
5. Submit initial registrations through OSS to obtain the Nomor Induk Berusaha (NIB) and required sector licenses. Timeline: 2-6 weeks depending on sector.
6. Coordinate with BKPM and local regulators for sector-specific permits and regulatory approvals. Timeline: 2-8 weeks.
7. Finalize capital structure, appoint Indonesian directors as required, and complete all post-formation filings and ongoing compliance. Timeline: ongoing after initial approvals.