Build Hotel in Bali
Foreign Limited Liability Company (PT PMA) is an Indonesian legal entity that can be owned by a foreigner;
1. Build Hotel: The PMA needs 30% Local investor.
2. Build Condotel: could be 100% owned by a foreigner, but needs at least 2 investors
3. Build Hotel: PT buy the land and build the hotel. Create a PMA as Hospitality, manage the hotel. Sign a contract with a local PT to manage 100% of the hotel.
The PMA company registration process as follows:
1/ Approval of company name at the Ministry of Law and Human Rights. 5 days
2/ Preparation of Article of Association by Notary. 10 days
3/ Approval of Deed of Establishment at the Ministry of Law and Human Rights. 10 days
4/ Obtain Certificate of Domicile from local district office. 14 days
5/ Obtain Taxpayer registration number (NPWP). 14 days
6/ Obtain Company Registration Number (NIB). 10 days
➢ Period : 3 months ➢ Fee : USD 4.000
PT & PMA can buy land, freehold
In Condotel could sell plots/apartments/rooms/villa by leasehold, maximal 50years, or local freehold
After obtaining the Capital Investment Registration or Business License, in the first 5 years, it is mandatorily required to invest in Indonesia with minimum 700.000$. This amount is applied for one business line and will be multiplied in accordance with how many business lines needed.
Minimum IDR 10 billion (USD 700 000)
25% (175.000$).......... of paid-up capital.
75% (525.000$) Can use for construction of the hotel or condohotel, or hospitality contract with PT (525.000$ minimum for 25 years hospitality, or more)
The investment plan could include non-financial investment and the paid-up capital could be submitted after the company established and has a bank account (stated on capital statement letter)
Minimal 2 shareholders. All of stakeholders can be foreigner.
• 1 director: The foreign director must have a local presence, live in Bali, and required to obtain limited work and stay permit (KITAS)
• 1 commissioner. The Commissioner can live Abroad and have Kitas
- For a business line that shall apply for Investment Capital Registration, it is mandatory to fulfill investment plan before getting a Business License and running the business.
- For the business line that directly apply for one-year Business License, it is allowed to start running the business or apply any further license required while realizing the investment plan
Finance service accounting & Tax reporting
We provide accounting and taxation services. After your company is established, it is mandatory to submit monthly tax report although you have no activities and zero taxes.
After incorporation, we assist our client in the preparation and submission of Investment Activity Report (LKPM) quarterly with an annual fee for USD 500 (includes 4 LKPM report)
The package of accounting and tax reporting as follows:
• Balance Sheet
• Income Statement
• Monthly tax report (withholding tax and VAT)
• Annual tax report
➢ Period Fee minimum 1-year service ➢ Fee: USD 6.000;
• Implementation fee 300$ one time
• Monthly fee 1 – 150 items 250$ (according to number of the transaction)
51 – 300 items 400$
301 – 500 items 550$
Above 500 items 1$/item
• Annual report/Tax Return ____ 400$/year
• Monthly VAT Reporting 50$/month
• Items refer to all financial documents, e.g. invoice, receipt, bank statement, etc.
• Items refer to Ledger inputs or number of Journal in the ledger e.g. certain period of invoices can be included within one Journal ledger other financial items include receipt, bank statement, etc.
• The fee shall be paid in advance for 1 year period
- 25% local TAX (income)
Taxation issues regarding dividends abroad:
• KITAS holder - 10% tax
• Legal Entity - 15% tax
• Foreigners - 20% tax
For funds that are entering Indonesia, there is no tax at all. These are the basic breakdown of the taxation regarding dividends and incoming transfers to Indonesia. However, we are also able to provide tax and accounting consultation if there are further detailed questions. We have a dedicated tax and accounting department that is ready to help you