BUSINESS ALTERNATIVES
Set Up a Company in Bali through Special Purpose Vehicle in Bali
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:
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Restaurants and cafés
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Surf and diving centers
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Yoga studios
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Travel agencies/tour operators
Through a set of agreements, you can have full control of the company even if it is under the name of the special purpose vehicle. This is a safe way of having a local entity holding your shares and will protect your interests. VIVO ASIA can act as your special purpose vehicle in Bali.
When Should You Consider Using a Nominee Company in Bali?
It is not uncommon to register a business in Bali using a nominee company. Foreign companies are subject to higher requirements and because of that, alternatives like using a local nominee shareholder (an inherently unsafe way) and special purpose vehicles (a much safer option) are used. In this article, we describe common scenarios when special purpose vehicles, i.e. nominee companies, are a suitable alternative.
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The function of a nominee company in Bali.
A nominee company will act as the registered owner of your local company’s shares on behalf of you or your foreign-owned company. Nonetheless, as the actual owner of the local company, you can still protect and control all of the assets and businesses. You can do that by having professionally drafted agreements. Additionally, by being the president director where you will be the leading decision-maker of the local company.
Transforming the local company into a foreign-owned company
Suppose your business classification can finally have 100% foreign ownership. Or, you finally have enough money for the required capital of a foreign-owned company. Transforming your local company into a foreign-owned company in Bali is very doable. Your local company will need to increase the capital to be no less than IDR 10 billion. Then, you or your foreign-owned company can buy the shares of the local company. Thus, you will become the shareholder and can become the director. Your local company will automatically become a foreign-owned company. In addition, you can appoint a family member as commissioner. It is to have relevant people as shareholders.
Alternatives to nominee companies in Indonesia.
As an alternative to incorporation, you can also set up a representative office. Representative offices don’t need to comply with capital nor ownership requirements in contrast to PT PMAs. However, as representative offices’ purpose is to only represent an overseas company, it cannot earn any revenue in Indonesia.
Using Nominee Shareholders in Indonesia the Safe Way.
Suppose your business classification can finally have 100% foreign ownership. Or, you finally have enough money for the required capital of a foreign-owned company. Transforming your local company into a foreign-owned company in Bali is very doable. Your local company will need to increase the capital to be no less than IDR 10 billion. Then, you or your foreign-owned company can buy the shares of the local company.
How does VIVO ASIA’s registration service work in Indonesia?
Our team will work closely with you to understand your unique business needs and tailor our services to meet those needs. Contact us today to learn more about how we can assist you in setting up and running your business in Bali.
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Get in touch with us to discuss your planned business activities in Indonesia.
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VIVO identifies the best type of business structure for your company, and collects the required documents from you.
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Our consultants prepare the required documentation for your company registration, and submit it to the relevant authorities as per your chosen company type. If required, our team also submit documentation to set up your company bank account.
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Once all submissions are made, the authorities confirm your company registration in Indonesia.