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Living and Doing Business in Bali: Choosing the Right Visa & Business Structure

Living and Doing Business in Bali


Understanding the legalities of living and doing business in Bali enables foreign entrepreneurs to build a secure, long-term lifestyle in Indonesia.

Every year, thousands of digital nomads, remote founders, and international investors relocate to the island.

However, operating a commercial enterprise without proper licensing or working on a tourist visa creates massive legal liability.

Consequently, pairing a valid foreign investment company with an appropriate resident permit ensures total peace of mind.

So, how can foreign investors balance visa rules, corporate ownership, and tax compliance under current Indonesian laws?


Living and Doing Business in Bali: Why a PT PMA Is Essential

Operating a business in Bali requires a legally recognized corporate entity. For foreign nationals, establishing a Foreign Direct Investment Company (PT PMA) provides the only legal path to generate local revenue.

In addition, setting up a PT PMA delivers clear operational advantages for long-term expat residents:

▪️ First, foreign investors can maintain up to 100% equity ownership in open sector activities under the Positive Investment List.

▪️ Second, corporate entities hold full legal rights to hire local staff, sign commercial leases, and invoice clients directly.

▪️ Furthermore, institutional banking access allows seamless international wire transfers and secure corporate asset holding.


Read More: Opening a Boutique Hotel, Villa, or Cafe in Bali: Licenses & PMA Rules Explained


Aligning Your Investor KITAS with Corporate Shareholding Rules

Securing the right residency permit is just as critical as incorporating the business itself. Indeed, managing living and doing business in Bali becomes seamless when holding an Investor KITAS (Index E28A).

First, the E28A visa attaches directly to shareholding status within a registered PT PMA. This setup eliminates the need for separate, expensive work permits (RPTKA) required for standard foreign employees.

Next, immigration authorities enforce strict individual shareholding thresholds for visa eligibility:

▪️ For example, an applicant must hold personal share ownership worth at least IDR 10 billion registered directly in the company deed and Online Single Submission (OSS) system.

▪️ In addition, the applicant must serve as an active Director or Commissioner listed within the corporate legal structure.

Therefore, meeting this personal share requirement grants foreign investors a multi-year, renewable residency permit with full re-entry privileges.


Managing Local Tax Compliance and Reporting Requirements

Maintaining active corporate standing in Indonesia involves ongoing financial compliance. Local tax authorities strictly monitor foreign-owned businesses in Bali to prevent tax evasion and illegal employment.

Furthermore, active companies must meet several mandatory reporting milestones:

▪️ To begin with, both the PT PMA entity and individual foreign directors must obtain local tax numbers (NPWP).

▪️ Moreover, companies must submit quarterly Investment Activity Reports (LKPM) directly to the Ministry of Investment/BKPM.

▪️ As a result, foreign residents staying over 183 days per year become worldwide tax residents subject to local tax filing.

Additionally, failing to file quarterly LKPM reports can lead to OSS-RBA license suspension or visa cancellation.


Read More: Accommodation Business and F&B Services Lead Bali Economy in Q2 2026


Partnering with Seven Stones Indonesia for Living and Doing Business in Bali

Setting up the right legal foundation from day one is essential for a stress-free transition. Check out Seven Stones Indonesia’s comprehensive PT PMA setup & Investor Visa corporate services.

Moving to Indonesia as a foreign entrepreneur marks an exciting chapter, yet corporate regulations, zoning checks, and tax filings require expert guidance. For this reason, Seven Stones Indonesia acts as a trusted corporate partner to assist with:

— First, navigating complex KBLI code selections under OSS-RBA licensing rules.

— Second, structuring compliant PT PMA incorporation and shareholding validation.

— Third, processing multi-year Investor KITAS (E28A) visas for founders and dependents.

— Finally, managing ongoing LKPM reporting, tax filing, and corporate legal updates.


Ultimately, foreign investors ready to master living and doing business in Bali can contact Seven Stones Indonesia via Whatsapp to secure their company and proper visa setup today.


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Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.

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Ridwan Jasin Zachrie

CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.