**Setting up a foreign company in Bali means choosing between a PT PMA — a fully foreign-owned company with an IDR 10 billion investment plan — a KPPA representative office with no capital floor but zero revenue allowed, or an EOR arrangement with no entity at all. As of 2026, a full PT PMA setup runs 6–10 weeks through OSS-RBA.**
Most of what ranks for this search was written by agencies selling incorporation packages. Archipelago Desk is an information hub, not a law firm and not an agency. We explain how the system works as of 2026, flag the traps, and — only when you ask — introduce you to licensed Indonesian professionals we have vetted. Every figure below is date-stamped and subject to change.
Which structure fits: PT PMA, local PT, KPPA, or EOR?
The decision tree is shorter than sales pages make it look. If you need to invoice clients from Indonesia, hold land rights, or sponsor your own stay permit, you need a [PT PMA](/pt-pma-setup-bali/). If you only need to research the market and build relationships, a [KPPA representative office](/kppa-representative-office-bali/) is the lawful low-cost route. If you just need one or two people on the ground before committing, an [employer of record](/employer-of-record-indonesia/) beats both.
| Structure | Foreign ownership | Capital (as of 2026) | Can earn revenue? | Typical setup | Best for |
|---|---|---|---|---|---|
| PT PMA | Up to 100%, capped by KBLI code | IDR 10B plan / IDR 2.5B paid-up | Yes | 6–10 weeks | Operating businesses, property holding |
| Local PT | 0% — foreigners cannot hold shares | No foreign minimum applies | Yes | 3–6 weeks | Indonesian shareholders only |
| KPPA rep office | Foreign parent, no local shares | No capital floor | No — strictly none | 4–6 weeks | Market research, liaison, promotion |
| EOR | No entity created | None | Through the EOR provider | Days | Hiring 1–3 staff pre-entry |
One honest note on the local PT column: foreigners cannot lawfully own it, which is exactly why nominee workarounds exist in Bali — and why we deal with them separately below.
How much capital does a Bali PT PMA actually require?
Two numbers get conflated constantly, and the difference is worth real money. The minimum investment plan is IDR 10,000,000,000 — roughly USD 660,000–700,000 depending on FX as of 2026. It is a commitment declared per KBLI code per location, not cash you wire on day one. The minimum paid-up capital is generally 25% of that: IDR 2,500,000,000, about USD 150,000–175,000, and this portion must actually be injected. According to Emerhub, the IDR 2.5 billion paid-up floor sits in Article 26(10) of BKPM Regulation No. 5 of 2025.
| Figure | Amount (as of 2026) | What it really means |
|---|---|---|
| Investment plan | IDR 10,000,000,000 (~USD 660,000–700,000) | Declared commitment to BKPM, realized over time |
| Paid-up capital | IDR 2,500,000,000 (~USD 150,000–175,000) | Must genuinely be injected into the company |
| Initial bank deposit | Often under USD 100 | Administrative account opening, per Bali Villa Realty — separate from the capital duty |
Full line-item costs, notary fees included, are broken down in our [PT PMA cost guide](/pt-pma-cost-bali/).
What is the OSS-RBA setup sequence in 2026?
The typical establishment runs six to ten weeks through six stages, each tied to a named institution:
- Name reservation and deed (weeks 1–2). The Akta Pendirian is drafted in Indonesian before a public notary and legalized by the Ministry of Law and Human Rights. You need at least two shareholders (one foreign), one director and one commissioner.
- NIB (weeks 2–3). The Nomor Induk Berusaha — your core business number — is issued through the OSS-RBA online single submission system, overseen by BKPM under the Ministry of Investment.
- Tax registration (weeks 3–4). Corporate NPWP from the Directorate General of Taxes, plus PKP confirmation if you will charge VAT.
- Domicile letter (weeks 3–5). The SKTU from local district authorities. Registered-address proof means an office rental agreement, a land certificate, or a building permit (the old IMB, now PBG) — a villa address usually fails this test.
- Sectoral licenses (weeks 4–8). Operational and commercial licenses issue through OSS keyed to your chosen KBLI codes; timing depends entirely on the risk rating of those codes. Details in our [OSS-RBA licensing guide](/oss-rba-licensing-bali/).
- Bank account and capital injection (weeks 6–10). Corporate account opening, then paid-up capital goes in.
Which KBLI codes can foreign companies use in Bali?
Every entity selects KBLI business-classification codes, and those codes — not your ambitions — determine the maximum foreign-ownership percentage under the Positive Investment List. Some codes allow 100%, some cap you at 49% or 67%, some are closed outright.
There is a Bali-specific complication that agency sites rarely mention: as of 2026, OSS-RBA has been blocking low and medium-low risk KBLI codes for PT PMAs registered at Bali addresses. Code selection is strategy, not paperwork — pick wrong and your application stalls for weeks. Our [KBLI ownership guide](/kbli-codes-foreign-ownership/) maps the codes founders actually use in Bali.
What about your KITAS and taxes after setup?
The director must reside in Indonesia. A foreign director therefore needs a KITAS work and stay permit plus a personal NPWP tax number, per Indonesia-Investments — walked through in our [investor KITAS guide](/investor-kitas-bali/). That personal NPWP pulls you into Indonesian personal tax obligations, and Indonesia participates in automatic exchange of information (CRS) with Australia, Singapore, the US and EU jurisdictions. Your home tax office can see the structure; plan as if it will.
On the corporate side, companies with annual turnover under IDR 4.8 billion can qualify for the 0.5% final turnover-tax regime as of 2026; above that, normal corporate income tax applies. Profits can be repatriated as dividends after tax. The full picture, PPh and VAT included, is in our [PT PMA tax guide](/pt-pma-tax-obligations/).
Why do we warn against nominee structures?
Because they are risky and effectively unenforceable. A local nominee holding shares “for” you has legal title; you have a side agreement Indonesian courts have repeatedly declined to protect. A PT PMA is the legal way for a foreign investor to hold land rights such as HGB or Hak Pakai and operate villas or developments — our position in full sits in the [nominee structure risk analysis](/nominee-structure-risks-bali/) and the [property-through-PT-PMA guide](/pt-pma-property-bali/). If a provider leads with a nominee offer, that tells you something about the rest of their advice.
How does a vetted-partner introduction work?
We do not incorporate companies, hold your money, or file documents. What we do is connect readers with licensed Indonesian notaries, corporate lawyers and registered tax consultants we have screened. The process:
- Message us on WhatsApp with your nationality, business activity, and rough timeline.
- We reply with clarifying questions — usually about KBLI fit and capital readiness — within one business day.
- We introduce you to a vetted licensed partner matched to your case, with a plain-English note on what to ask them.
- You engage them directly. Fees, scope and advice are between you and the licensed professional.
> Ready to compare your options? Send your situation to the Bali Premium Trip concierge on WhatsApp at +62 811-2859-0000 or email sales@balipremiumtrip.com. We arrange introductions via vetted licensed partners — we are not a law firm, not a tax adviser, and we never promise approval outcomes.
Everything on this page is general information, not legal or tax advice. Regulations shift; the figures above are accurate as of 2026 and subject to change. Before you sign anything, put the specifics in front of licensed Indonesian counsel and a registered tax consultant.