Requirements to start a business

[sailor4915]

I have read the last thread about starting a business in Bali, and didn't want to post in that thread. My question is more of the legal requirement for starting a corporation. I already have a plan of WHAT, this question is more of the HOW?

I was originally thinking of 'retiring' to Bali by applying for the reired visa. After reading a bit deeper, I am not eager to put myself at the mercy of one of these so called 'Agents' to 'sponsor' me. Also, if I want to do anything that might look like a job (pay or not) it appears as though I need to have a work visa. I realize this will cost $1200 per year.

With that in mind, my thoughts are to form a PT Corporation. There would be 3 people on the board of directors, myself, an Australian who currently resides in Bali and an Indonesian. The corporation could 'employ' members of the board, as well as locals to work in various capacities.

So, my questions are specific to the legal requirements. The basic idea would be purchase land, build apartments for sale, manage rental of said apts during owners absence.

1. Is a PT Corp the correct type of Corp to this business plan? If so, what are the requirements? Registration process, start up capital requirements, articles of incorporation, board of directors composition, etc?

2. The building permits (BMI?) are obtained from who or what entity? What is the requirement to obtain a permit? Architect approved plans, engineering reports, zoning, environmental impact studies, etc?

3. Is there some sort of zoning change requirement (assuming the land is currently agricultural)?

4. Infrastructure considerations? Access/road issues, parking, electrical, water, septic, phone, internet, etc?

I am hoping this will end up being a thread providing the practical and legal requirements of starting up a business on Bali. I am sure I haven't thought of everything, I have a very limitted knowledge of the requirements or process, and thus my question. Answers can be specific or general, if anyone needs answers more specific to their proposed project, they can certainly ask. Let's all hope this can be a thread full of good current practical information wrt starting a business in Bali. Looking forward to hearing from everyone.

 

[sakumabali]

Hello Sailor,

welcome to the forum!

1. You mean probably a PMA (foreign investment PT), this cost you around 5000 $ and with this sort of company you can sponsor your own visa. With a "normal" PT you will only be an employee in your own company and that means you need the right job, apply for a working permit and hope the government will agree. With a PMA you don't have these kind of headaches. When I set up a PMA, I went to an agency and said to them what I want to do in the future, the problem in my case were hundreds of papers in indonesian language I didn't read. I thought I made my point clear, I asked them "evth ok? Can I legally do this / that now?" They said yes & I paid them. Now I know that they took a legal shortcut, good for them but bad for me. Had some problems recently after founding out that I can't legally do what I wanted to do. Evth very bureaucratic & complicated here. So be aware of this. Better spend some more money for a translation.
2. A building permit (IMB): Better don't do this yourself, would be even longer & costlier, you need some indonesian who goes for you to the PU with the architect drawings; many people has to sign, the leader of the village, the (sub)district etc etc...and it needs lots of time too. If you need it fast you must pay lots of baksheesh :icon_wink:
3. YES!! I was about to buy a perfect plot for apartments, everybody keep saying "of course you can build apartments here, just think about the height limits" blablabla was a lot of money so we made a survey, send an architect to the government office. The result: no the zoning not allow to build apartments there, we never would have get an IMB. Again: deals are possible but costly (for this project easily 100.000 $ extra fee) so better make sure first that the zoning is "perdagangan dan jasa" (trade & services, maybe not exact translation) and not "perumahan" as in my case. This is for just villas...
4. Infrastructure: make sure you get your OWN access, even you have I'd talk with the banjar, the subak, the neighbors or in the south maybe send somebody to ask the mafia (LB) BEFORE you pay any money. If any of them (banjar in the rest of Bali, Mafia in the south) say "you'll not build anything here because of this / that you'll not build it even with an IMB unless everybody's happy..

Most of the time everything is working out ok!!

Good luck!

Marc