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LIFESTYLE BUSINESSES

INVESTMENT & DEVELOPMENT

Setting up a lifestyle business in Indonesia

Set up a property business or buy the right property for yourself in Bali with VIVO ASIA

Common Lifestyle Businesses in Bali.

There isn’t a particular niche or industry for a lifestyle business. Some of the most popular lifestyle businesses for foreigners in Bali include:

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  • Businesses in the food and beverage industry like restaurants or cafes.

  • Short-term rentals like villas or guesthouses.

  • Travel agencies or tour operators.

  • Recreation and leisure activities (yoga, surfing, diving, golf).

  • Clothing and jewelry design and distribution.

  • Import and sales of cosmetics.

  • Spiritual health, holistic and wellness services/retreats.

  • Consulting services, for example, marketing, branding and social media management.

  • Photography and videography services.

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Common myths regarding doing business in Bali

We learned from our clients that there are a few misconceptions about doing business in Bali. We gathered the most common of these and discussed them below.

 

There is no law that prohibits foreigners from being directors of a local company in Indonesia. Only one director in a local company has to be a citizen of Indonesia. Other directors can be foreigners.

Challenges of Lifestyle Businesses.

The minimum capital requirement for foreign-owned limited liability companies (PT PMA) is IDR 10  billion (approx. USD 700,000). Lifestyle businesses are quite small so fulfilling these requirements is difficult. There is no need to submit an investment plan, nor show the company’s bank account. However, the Indonesian government enforces the above regulations. You must prepare a capital statement letter to prove the paid-up capital. Your company will also have to file an investment activity report (LKPM) periodically to show that you are investing money. VIVO ASIA can help you prepare and submit the capital statement letter and LKPM. We will make sure that you maintain compliance with Indonesia’s investment regulations.

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Alternatives to Setting Up a PT. PMA

Setting up a 100% foreign-owned PT PMA is not the only way to start a lifestyle business in Bali. You can also set up your business through a special purpose vehicle. A special purpose vehicle is a legal entity that holds shares on behalf of another party. In essence, the special purpose vehicle is just a name on the company’s documents. With a local Indonesian company as your special purpose vehicle, you do not have to follow regulation for foreign-owned companies. Some examples of businesses where special purpose vehicles are common:

Offering end-to-end property management in Bali for foreigners and locals.

Whether you want to buy something new, sell your existing properties, or find the best business solutions for your needs, VIVO ASIA’s consultants are here to help!

Expertise and Independence

Trust an independent business consulting firm to follow up on your project. We act as your representative and follow your instructions.

We speak your language

Our consultants are from all around the world and understand your needs. Speaking to somebody who understands you is the key to finding the best solutions for your property needs.

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12 Common Mistakes To Avoid When Establishing A Company In Indonesia

We've listed the most common mistakes foreigners make when starting a company (PT PMA) in Indonesia. Here's how you can avoid them and have a clear start. There are many common mistakes foreigners make when they start to set up a company in Indonesia. Some of them happen due to lack of preparation, some of them as a result of twisting the law. This article helps to avoid those mistakes and get your company up and running without unnecessary delays.

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served for property management & due diligence

VIVO ASIA Consultants work as your partners to find the most profitable solutions for your property needs.

How does VIVO ASIA’s property management service work in Bali?

  1. Get in touch with us to discuss your project with one of our consultants.
                                  

  2. We help you find or negotiate the property with the third party.
                                                                      

  3. We assist with all meetings and prepare and review the agreements for you. 
                                                                                        

  4. We perform due diligence on the property.
     

  5. We appoint the notary and make sure your agreement is secured and we help you during the sales or purchase process.
     

  6. We assist you to set up your business and get all the necessary licenses.
     

  7. VIVO ASIA will process your Visa and Permit to stay in Bali.
     

  8. Our tax and accounting team will make sure you are compliant with the local regulation.

  • How long does it take before I can operate my newly established company?
    With Vivo Asia, it takes almost 4 weeks to establish a company.
  • What are the essential requirements to set up a company in Bali?
    For company registration in Bali, you’re required to have at least two shareholders and a capital statement letter.
  • Can I have 100% ownership?
    For foreign companies in Bali, there must be a minimum of 2 shareholders. In most cases, Indonesian legislation allows 100% foreign ownership but there are some exceptions.
  • How many KITAS can a company sponsor?
    The number of KITAS you can sponsor is not regulated by law. Any shareholder who fulfills the legal requirements is entitled to receive an investor KITAS.
  • Is there any limitation on how many shareholders or directors the company can have?
    No, there is no limitation. A company can have as many shareholders or directors as they want.
  • Do I have to prove the capital on the company’s account for company registration in Bali?
    No, a capital statement letter from Vivo Asia is sufficient to register a foreign-owned company in Bali. The capital can be transferred once the company is registered and a bank account is opened.
  • Are tax rates different for foreign-owned companies and local companies?
    The tax rates for foreign-owned companies are based on the company’s revenue and profitability, just like the tax rates for local companies. Therefore, tax rates are the same for Indonesian and foreign companies.

Looking for support to buy a new property or manage your existing one in Bali? Get in touch with VIVO ASIA for a free consultation today.

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