start a business in Kuta

[pjkl]

Any help, advice or personal experience would be appreciated.

I'm starting a business that implies opening and running a shop in Kuta.

My first idea would be to rent the shop, apparently the minimum lease is 3 years and price start around 25 millions.

Once I opened the shop and put my stuff in it, I don't want to operate it, I want somebody inside to take care of it.

My questions are :
- do I need to open a Balinese company, or as a foreigner can I rent a shop and pay somebody working in Bali ? (somebody allowed to work of course)
- If yes, what kind of taxes am I supposed to pay ?
- For the people I want to hire ? I am a bit concerned about local people, what do you think ? And also how much you think I should give them so that they think twice before they cheat me because they won't find a better position easily ? Do you think money can prevent troubles ?

If you can only answer one of the above questions, that would be already really appreciated.

Thanks in advance

 

[JohnnyCool]

Without wishing to sound disrespectful, and based upon the questions you asked, here is my answer to all of them:

DON'T DO IT

You didn't even tell us what you're going to try and sell in your 'shop'.
You will likely be eaten before breakfast, believe me.

If not, get over here and do some REAL 'research'.

If you want to throw your money away, put it a brown paper bag (if it's not raining), and drop it near my house. If it is raining, a plastic bag will do. (I promise to dispose of the plastic in an environmentally-friendly way.)

Do you think money can prevent troubles ?

What do you think?
Sometimes yes, sometimes no. Other times money can create problems.

Good luck!

:shock:

 

[pjkl]

Thanks for prompt and frank reply. Appreciated.

I understand your vaild point but don't worry, I'm at early stage and I'm asking questions to get a better idea and options are so many. I still have time to find the right way to do it.

On the other hand, if I would have listened to all people who told me "don't do it", I would not have done anything so far.

 

[JohnnyCool]

On the other hand, if I would have listened to all people who told me "don't do it", I would not have done anything so far.

That's a great attitude!

Hmmm...would it be too rude a question to ask what you have done so far?
What are you going to sell?

Just curious...

 

[spicyayam]

- do I need to open a Balinese company, or as a foreigner can I rent a shop and pay somebody working in Bali ? (somebody allowed to work of course)

I don't think you actually need a company to rent a shop. It depends on the owner. As long as they get their money, they don't seem to care much. But then to carry out the business you will then need to set up a company: UD/CV/PT.

- If yes, what kind of taxes am I supposed to pay ?

I don't know of the exact rate of company tax, but yes, you will need to pay tax on your profits. There is also a tax you need to pay when you first register at the tax office.

- For the people I want to hire ? I am a bit concerned about local people, what do you think ?

If you are going to run your business remotely, then yes it is not going to be easy to manage your business and you will just be opening yourself up to a whole range of problems.

And also how much you think I should give them so that they think twice before they cheat me because they won't find a better position easily ? Do you think money can prevent troubles ?

Maybe yes, maybe no. It's all going to depend on the people you employ. Also only an Indonesian person can be a director of a PT or CV company.

Unless you can be here 24/7 watching your business, I just wouldn't do it. Then you will need a working visa etc.

Even if manage to get through all of this, there are so many unknowns, like p*ssing off the wrong people, if you start a business that competes with them.

One suggestion, you could consider starting your business online. Like an e-commerce store?

 

[pjkl]

Thanks Spicyam,

I am not really surprised about your answers.
I will have to find a way to do it anyway, but I do not feel very comfortable about it.
I did not want to do it completly remotly but not go more than once a month.
And it's a business related to e-commerce already...
Do you think if I pay a lawyer to set up something and hire a western guy to run the business like a subsidiary it could solve the redtape issues about opening a PT or CV company ? Or is it really compulsory ?
If not, I still have the option of putting my money in a paper bag... :wink:

Johnnycool,

as you're asking and now I think about it, I did not do anything that great in my life because sometimes I did not listen to the advices I've been given, (especially when I was younger) but alltogether I had some fun.

I'm not Steve Jobs, but I had a few success stories locally and some big failures too.

Regarding the project, it's still confidential, but for once in my life the few persons I presented it said t was a really great idea and wanted to join. Compared to the reactions I used to have in the past with my ideas, it's a good sign.

Cheers and thanks

 

[JohnnyCool]

Regarding the project, it's still confidential, but for once in my life the few persons I presented it said t was a really great idea and wanted to join. Compared to the reactions I used to have in the past with my ideas, it's a good sign.

I hope the "few persons: you listen to are right.

Good luck to all of you in this new gob-smacking enterprise, whatever it is.

A great pleasure in life is doing what people say you cannot do.
Walter Gagehot - 1826-1877

Way to go (perhaps). And all well and good, if it works for you.

I read this in a novel the other day. Doesn't have anything to do with your venture, per se. Or maybe it does, when you think about it enough in a lateral kind of way.

"War is God's way of teaching Americans geography."

8)

 

[spicyayam]

Do you think if I pay a lawyer to set up something and hire a western guy to run the business like a subsidiary it could solve the redtape issues about opening a PT or CV company ?

Just opening the company is really the easy part. Taking the next step to actually make money is difficult. I would probably trust a foreigner living in Bali less than a local.

If it is e-commerce, why would you need a shop?

 

[mimpimanis]

I would probably trust a foreigner living in Bali less than a local.

Not saying that a foreigner should be trusted any more than a local just, wondering why you would trust one less???

 

[SamD]

...I am a bit concerned about local people...

My advice is to think very carefully about exactly what you are hoping to achieve with this business. If you think you can successfully run a new business by appearing once a month, without trusting the local Balinese then I think you are in for a nasty surprise. If you were Balinese and reading this forum, how would you react to your post? I think you would be somewhat offended, if not outraged at the implied insult. You are planning to set up a business in their country!!

In my opinion, to run a business you need to be there, especially at the start. I would also suggest you change your negative attitude about the local Balinese.

Good luck.

 

[begonia]

I would probably trust a foreigner living in Bali less than a local.

Not saying that a foreigner should be trusted any more than a local just, wondering why you would trust one less???

Sorry if this is not the topic!!
Almost 10 years living in Bali, talking ONLY from my own experience, cheat once by an American woman and many times by local people.....
Sometimes I feel like to trust someone here is like play lottery........you never know....
I tend to trust more foreigners probably because I am a foreigner and "I know" more foreigner mentality and culture, I hope you know what I mean!
Been almost 10 years here balinese are always a surprise for me........
Have a good day!!

 

[Dyah]

:shock: :shock: OMG
spechless ...
Starting bussines with this negative opinion about local people?
Hmm i think it´s not a good start.

 

[pjkl]

Hi,
Thanks for feedback and replies.
Just something I need to explain, it's a franchise kind of business. (linked with a website business) But the one in Bali is important as it will be a flagship store.
I can't go more than once a month as I don't have only Bali to take care of.

And Dyah, about mistrusting local people, it's mainly because of the threads on this forum and others, so many stories... It's good to get advice from people on the spot.
I don't want to open a business in Bali because I love Bali but because Bali is important to my business. That makes a great difference !!!
Cheers

 

[spicyayam]

Franchises usually have systems in place to handle all of the money, stock etc, so perhaps it will easier to control remotely. You just need to employ a manager with good retail experience.

 

[pjkl]

That's the idea, but from what I understand, it needs to be an Indonesian company anyway... I apparently can't own and run a business as a remote company.

 

[spicyayam]

Best to contact a lawyer here. The first post sounded like you want to open a small shop here. There could well be different costs/laws with a foreign franchise opening in Indonesia. I don't expect it to be easy, depending on the business. Have you noticed that only Circle K and Indomaret are the only convenience stores here?

I would suggest taking a look at this website:

http://bursafranchise.com/