What Visa Do I Need to Start a Business in Bali?
Starting a business in Bali involves more than establishing a company. Foreign investors also need to consider whether their immigration status allows them to undertake the activities they intend to perform while in Indonesia.
The appropriate visa can depend on whether you are simply visiting Bali to investigate a potential investment, establishing a company, investing in an existing business, acting as a director or commissioner, or carrying out work within the business.
For this reason, the company structure and immigration strategy should ideally be considered together.
Can You Visit Bali to Investigate a Business Opportunity?
Foreign investors often travel to Bali before deciding whether to establish or acquire a business.
Depending on the visa held, certain visitor activities may be permitted, including attending meetings, discussing business opportunities or undertaking other approved business-related activities. However, a visitor visa should not be treated as general permission to work in Indonesia.
For example, certain visitor visa categories may permit tourism, meetings and other approved activities but do not provide general permission to work or receive payment for work or business activities in Indonesia.
Our guide Can You Work in Bali on a Tourist Visa? explains this distinction in more detail.
Do You Need a PT PMA to Start a Business in Bali?
Foreign investors who want to establish a business in Bali may need to consider a PT PMA, Indonesia’s foreign-owned limited liability company structure.
Whether a PT PMA is appropriate depends on the proposed business, ownership structure, investment and other circumstances.
Our guide What Is a PT PMA and Who Needs One in Bali? provides an introduction to how this structure is used by foreign investors.
Where a PT PMA is appropriate, Bali Legals can also assist with PT PMA Company Setup, including the legal and corporate establishment process.
What Is an Investor Visa in Indonesia?
Indonesia provides specific immigration pathways for eligible foreign investors.
Investor visa categories may permit activities connected with business, investment and company establishment. Depending on the applicable category and circumstances, they may also accommodate qualifying foreign investors undertaking certain roles within companies in which they have invested.
However, holding shares in a company and being authorised to undertake particular activities within that company are issues that should be assessed according to the investor’s circumstances and the applicable visa category.
An investor visa should therefore not simply be treated as a universal visa for carrying out any type of work in Bali.
Bali Legals can assist investors in understanding whether an Investor Visa may be appropriate for their intended activities.
Can You Work in the Business You Establish?
This is an important distinction for foreign business owners.
Owning or investing in a business and working within that business are not necessarily the same thing.
Indonesia maintains different immigration classifications for different activities, including investment and employment.
The appropriate immigration arrangement can therefore depend on:
- the person’s role within the company
- the activities they intend to perform
- their ownership or investment position
- the company’s legal structure
- the applicable immigration and business requirements
Foreign investors should establish what activities their immigration status permits before actively working within a Bali business.
Can You Establish a PT PMA While Visiting Bali?
Being in Bali while investigating or preparing a potential investment does not automatically mean that a visitor visa permits someone to commence working within the resulting business.
Company establishment and immigration status are separate legal considerations.
A foreign investor may therefore need to consider the establishment of the PT PMA alongside the immigration pathway appropriate to their intended role.
This is one reason it can be useful to plan the PT PMA Company Setup and visa arrangements together rather than treating them as unrelated processes.
What if You Are Buying an Existing Bali Business?
Some foreign investors choose to acquire an existing business rather than establish a new company.
In this situation, the legal structure of the acquisition, ownership of the company, existing licences, contracts, liabilities and the investor’s proposed role should all be investigated.
The appropriate visa will then depend on what the foreign investor intends to do following the acquisition.
Simply acquiring an interest in a business should not be assumed to provide unrestricted permission to work within that business.
What if You Only Work Remotely From Bali?
Working remotely for an overseas company is different again.
Indonesia has immigration pathways specifically intended for certain eligible remote workers. This further demonstrates why the correct immigration pathway depends on the actual activity being undertaken rather than simply whether someone describes themselves as an investor, business owner or remote worker.
Someone operating an Indonesian business may therefore have different immigration considerations from someone living in Bali while carrying out duties for an overseas employer.
Why Business Structure and Visa Planning Should Work Together
Foreign investors sometimes approach company formation and immigration as two completely separate issues.
In practice, they can be closely connected.
Before establishing a business in Bali, it is useful to determine:
- what business activities will be undertaken
- whether foreign ownership is permitted for the proposed activity
- whether a PT PMA is appropriate
- what role the foreign investor will have
- whether the investor intends to actively work in the business
- which immigration status is appropriate for those activities
- what licences and approvals the business may require
Addressing these matters early can help create a clearer legal structure for operating the business in Indonesia.
Visa and Business Setup Assistance in Bali
There isn’t one visa that is automatically appropriate for every foreigner who wants to start a business in Bali.
The appropriate structure depends on the nature of the investment, company, ownership arrangement and the activities the foreign investor intends to undertake.
Bali Legals provides Visa & Migration Services alongside corporate and foreign investment assistance, allowing the immigration and business structure to be considered together.
We can also assist with Investor Visas and PT PMA Company Setup, helping foreign investors establish an appropriate legal framework for their proposed business activities.
Contact Bali Legals if you are considering establishing or investing in a business in Bali and need assistance understanding the appropriate company and immigration structure.
Frequently Asked Questions
What visa do I need to start a business in Bali?
There is no single visa that applies to every foreign business owner. The appropriate immigration pathway depends on factors including the business structure, investment, the person’s role and the activities they intend to undertake in Indonesia.
Can I start a business in Bali on a tourist visa?
A visitor visa should not be treated as general permission to work or operate a business in Indonesia. Some visitor categories permit particular business-related activities, but actively working within a Bali business may require a different immigration arrangement.
Do I need an investor visa to own a PT PMA?
The appropriate visa depends on the investor’s circumstances, investment and intended activities. Indonesia has specific immigration pathways for eligible foreign investors.
Can a foreigner be a director of a PT PMA in Bali?
Foreign nationals may hold certain positions within qualifying foreign investment companies, subject to applicable company, investment, immigration and employment requirements. The appropriate structure should be determined according to the company’s and investor’s circumstances.
Is an investor visa the same as a work visa?
No. Indonesia has different immigration classifications for investment and employment activities. The appropriate category depends on the person’s role and what they actually intend to do in Indonesia.
Can Bali Legals help with both my PT PMA and visa?
Yes. Bali Legals provides assistance with PT PMA Company Setup in Bali as well as Visa & Migration Services, allowing foreign investors to consider the company structure and immigration requirements together.
Important Information: This article reflects the laws, regulations and administrative requirements applicable in Indonesia to the best of our knowledge at the time of publication. Requirements and their application may change over time and can vary depending on individual circumstances. For current advice relevant to your specific property, investment, business or immigration matter, please contact Bali Legals.