Becoming a Sharholder and Investor in Bali

Becoming an investor and stay in Bali gives you the right to apply for an Investor KITAS temporary residency

To invest in Bali, to create a limited company (PT PMA) and to then receive an investor visa (KITAS) is a possible, and less complex than many think, provided you work with professional consultants and have the capital and business model sorted out. 

Investing in a property in Bali can also work well when having a PT PMA. 


Business Visa

An easy way to sort out a visa problem?

It is not uncommon that some visa agents are offering foreigners who wish to stay in Bali the option to become a shareholder in a company and therefore get a 2 years investor visa. 

While this is not strictly illegal, it is also a bit of a grey area and can come with a lot of risks. Usually these companies that you would be a shareholder of are not active and visa / KITAs applicant knows nothing of the company. Nevertheless in Indonesia, like all over the world, limited companies have strict legal and fiscal obligations.  And as a shareholder you can be liable for what happens in and with these companies. Also, often it is naively overlooked, that being a shareholder does have tax implications in Indonesia. To believe that this is a safe and easy way to stay long-term in Bali, is naive.

Investor KITAS / Shareholder KITAS

Must-know facts

Applying for an Investor visa is one of the safest and legal way for foreigners to reside in Bali. Whether you are looking for new investment opportunities, starting your own business, or even continue being a digital nomad, an investor visa is the easiest path to further your stay in Indonesia. With two types of Investor visas thats renewable and only take between 3-4 weeks to be processed, an investor KITAS gives foreigners the biggest freedom to move to Bali.

With an Investor KITAS, foreigners are qualified for loans with the ability to open an local bank account. Moreover, foreign investors are allowed to enter and exit Indonesia as many times as they choose within the permit’s validity period, as well as support dependents such as their spouse and children under the age of 17. Having this in mind, an investor KITAS, if renewed over time and reaching 5 years, qualifies you for a permanent residency KITAP.

Yes, anyone can apply for an Investor KITAS who is s shareholder of a local PT PMA company. Either you invest in an existing company or create your own entity. 


A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a limited liability company with foreign investment in Indonesia. It is commonly referred to as a foreign-owned company or a foreign direct investment (FDI) company. PT PMA allows foreign investors to establish a legal entity in Indonesia and engage in various business activities. Here’s an overview of PT PMA and the requirements to create one for a foreigner:

1. PT PMA Ownership:

  • PT PMA must have at least one foreign shareholder, and the minimum percentage of foreign ownership depends on the business sector and regulations.
  • For certain industries, there might be restrictions or requirements for having a local Indonesian partner or obtaining special licenses.

2. Capital Requirements:

  • The minimum capital requirement for establishing a PT PMA is determined based on the business sector and location of the company. The capital can be in the form of cash, assets, or a combination of both.
  • The capital must be fully paid up before the company’s incorporation.

3. Business Activities:

  • PT PMA can engage in a wide range of business activities, depending on the industry, and should be consistent with the business classification in the company’s Articles of Association (Akta Pendirian).

4. Business Plan and Investment Plan:

  • A comprehensive business plan and investment plan are required for PT PMA registration. These documents should outline the company’s objectives, operations, and investment projections.

5. Local Representative Office:

  • PT PMA must have a local representative office (Kantor Perwakilan) in Indonesia. The representative office is responsible for liaising with Indonesian authorities and is often used as the company’s official address.

6. Board of Directors and Commissioners:

  • PT PMA should have a Board of Directors (Direksi) and a Board of Commissioners (Dewan Komisaris). Directors must be individuals, and the Commissioners can be either individuals or corporate entities.

7. Legal Entity and Tax Identification:

  • PT PMA must obtain a legal entity and a tax identification number (NPWP) from the Indonesian tax office.

8. Licenses and Permits:

  • Depending on the business activities, PT PMA might need to obtain specific licenses and permits from relevant government agencies.

9. Company Registration Process:

  • The company registration process involves several steps, including drafting the Articles of Association, obtaining approvals from relevant ministries (if required), and registering the company with the Indonesian Investment Coordinating Board (BKPM) and the Ministry of Law and Human Rights.

Establishing a PT PMA in Indonesia can be but does not have to be a complex process, as long as you hire professional consultants. Foreign investors are strongly advised to seek professional assistance from legal and business consulting firms familiar with Indonesian regulations. Adhering to local laws, understanding the investment restrictions, and having a well-prepared business plan are essential for a successful PT PMA registration.

Even though you hold a valid Investor KITAS and you are one of the shareholder in the company, that does not mean that you can work and receive salary in Indonesia. You would probably be assigned as the commissioner or director of the company. 

As a shareholder you can receive a pro-rata dividend. Dividends are taxed with 10% in Indonesia. 

To be able to work for your company, you would need to get properly hired and need a “Work Permit”, receive a salary, pay taxes on the salary (income tax) and pay USD 1,200 a year as DPK-TKA (Compensation to Hire Foreign Workers).

Your Investor KITAS is valid for 2 years, however you can always extend it. We also have option for 1 year Investor KITAS which is more affordable.