Purchasing a Hotel in Bali

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Neville

New Member
Jan 4, 2005
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Germany
RE: One Expats "How To Live In Bali" Guide

If you purchase a hotel/restaurant what type of visa is required ? Are there company/business taxes applicaple ? Anyone able to answer these questions very appreciated as there seems to be many different variations from as many different people. Assume this is due to varying rule changes and not to mention corruption. Also I understand that there is a $100,000 bank deposit required for a "business visa" - is this refundable and if so when ?
Look forward to the replys
Neville
 
B

Bert Vierstra

Active Member
Nov 5, 2002
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Hotel - PMA

Several "constructions" are available. The $100.000 you talk about is for the raising of a PMA, a foreign investment company. A PMA is an Indonesian company wich can be owned by foreigners.

This amount has to be an an Indonesian Bank account during creation of your company. This company will be able to "give" you (a few) KITAS (5yrs) and a working permit(s) at a cost of about 1200 USD a year pp.
 
S

sander

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Dec 29, 2004
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www.hamel.it
Maybe one more intresting point, yes to start a PMA you need 100.000 US Dollar, but you can also do it with a smaller ammount, for example.

If you only have 10.000, put the 10.000 US Dollar on your indonesian bank account, take it off and put it back again, do this 10 times ( total 100.000US Dollar transactions). That should do it.

Maybe it would be the best to contact a consultant, they can help you and it saves you some times. There are many consultants here.
 
A

andi

New Member
Feb 4, 2005
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Re: RE: Purchasing a Hotel in Bali

sander said:
If you only have 10.000, put the 10.000 US Dollar on your indonesian bank account, take it off and put it back again, do this 10 times ( total 100.000US Dollar transactions)
does that really work?! :shock:
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H

hicarbon

New Member
Jun 23, 2005
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Richmond, Va. USA
Re: RE: Purchasing a Hotel in Bali

sander said:
If you only have 10.000, put the 10.000 US Dollar on your indonesian bank account, take it off and put it back again, do this 10 times ( total 100.000US Dollar transactions). That should do it.
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I don't understand how putting $10,000USD into an Indonesian bank account, then pulling it out and putting it back in, 5x in one day, would equal out to having $100,000USD. :shock:
 
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bicg

New Member
Jun 7, 2006
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Bali
Hi Neville and all,

In regards to PMA company, as of new regulations minimum capital should now be USD 200,000.

Yes you can put in a small amount, take it out and in again until you reach the capital proof.

You will need the cash payment slips you deposited into the account as proof for the notary who will issue articles of association.

Please remember, this has to be in cash, international transfers are not accepted with some notaries.

In regards to Neville's questions:

The purchase of a hotel is a rather difficult process and requires professional assistance to assure all land/lease titles are in order and the operational licenses are in place.

I recommend to use a Jakarta based lawyer with M&A experience.

Yes there are taxes to pay, while there are some tax incentives on FDI (foreign direct investment)

Also the government of Indonesia now requires a minimum of 5% of shares to be held by an Indonesian national, which was previousely after 15 years of operation.

For the purchase itself you would not require a vise, but as it is a longer process a business visa would be appropriate, to be applied to by the Indonesian Embassy in your country. You will need an Indonesian sponsor to issue a recommendation letter.

After forming the company and ensuring proper take over of assets the new company can than sponsor a working visa.

Taxes:

There is a 10% sales tax 5% tourism tax and 5% service charge applicable, which is added as a common 21% on top of all your prices

Additionally salary tax, income/profit tax, lease/land tax and a couple of other costs

Hope that helped a bit

Regards
Chris
[email protected]
 
R

Roy

Active Member
Nov 5, 2002
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Ubud, Bali
I recommend to use a Jakarta based lawyer with M&A experience.
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That's good advice if you are opening a hotel or restaurant in Java, but bad advice if you're thinking of Bali.

In Bali, use Balinese, or at least Bali based attorneys.
 
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Bert Vierstra

Active Member
Nov 5, 2002
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Maybe Chris has a reason for advising a Jakarta based lawyer, maybe he has someone specific in mind that has experience in Bali doing these kind of transactions.
 
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Roy

Active Member
Nov 5, 2002
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Ubud, Bali
Well Bert, I think about such things from a totally different view point. It’s kind of like being in New York, and needing a good lawyer. Would one get their lawyer in Los Angeles?

A lawyer is only as good as his/her ability to argue a case in court. The more a lawyer is well known, and respected by the justices, the better off is their client.

Do you think some well healed, notorious Jakarta lawyer is what you want representing you in the provincial court in Bali? I sure don’t. That sends all the wrong signals.
 
R

Roy

Active Member
Nov 5, 2002
4,835
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Ubud, Bali
We are not going to court here...
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In that case, (no pun intended), all the more reason to use a local attorney for local work. Come on Bert...is YOUR attorney in Jakarta?

What possible reason would someone in Bali have the need for an attorney in Jakarta when there are so many well known, well established and reliable attorneys already here in Bali?

In any event, in my view, when entering any legal agreement one should anticipate the possibility of eventually needing the court to enforce one’s rights. I can only guess what it would cost to have a lawyer from Jakarta representing oneself in the Denpasar courts. Sorry, but I think using a lawyer based in Jakarta for legal needs in Bali is simply absurd.
 
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