Foreign Business Setup Guide
How to Start a Beauty Salon in Bali as a Chinese Foreigner
Everything you need to know about licenses, company setup, and compliance requirements for Chinese entrepreneurs opening a beauty salon in Bali, Indonesia.
Licenses Required
1
Est. Cost Range
Contact us
Timeline
6-20 days
Quick Answer
Yes, Chinese foreigners can start a beauty salon in Bali, Indonesia. This business activity is open to foreign investment with up to 100% foreign ownership through a PT PMA (foreign-owned limited liability company).
You will need approximately 1 licenses and can expect the process to take 6-20 business days. The estimated government and service fees range from Rp 10,000,000 to Rp 50,000,000.
Foreign Ownership Rules
Foreign Ownership
Up to 100%
DNIB Status
open
Recommended Structure
PT PMA (Foreign Investment Company) (PT PMA)
As a foreign investor opening a beauty salon in Indonesia, you will typically establish a PT PMA (Perseroan Terbatas Penanaman Modal Asing) — a foreign-owned limited liability company. This is the standard legal entity for foreigners conducting business activities in Indonesia.
Minimum investment capital: Rp 10.000.000.000 ($645,161).
Bali — Local Compliance Guidance
Specific regulations, costs, and timelines that apply to businesses setting up in Bali.
Cost Adjustment
15% higher
Costs in Bali are approximately 15% higher than the national average due to local market conditions and regulatory requirements.
Timeline Adjustment
+5 business days
Processing times in Bali typically take 5 additional business days compared to the national average.
About Bali
Bali has unique provincial regulations. F&B businesses in tourist zones face stricter environmental and noise requirements. The Bali Provincial Investment Board (DPMPTSP Provinsi Bali) handles local permits alongside the national OSS system.
Additional Local Requirements
These permits and requirements apply specifically in Bali, in addition to national requirements.
- Bali Provincial Tourism Permit
- Environmental Impact Assessment for coastal areas
Restrictions & Warnings
Special zoning regulations in tourist areas (Kuta, Seminyak, Ubud)
Alcohol licensing requires additional Bali Governor approval
Beach-front businesses require coastal permit from Marine Ministry
Local Investment Authority
Authority Name
DPMPTSP Provinsi Bali
Contact
dpmptsp@baliprov.go.id
The local DPMPTSP (Investment and One Stop Integrated Service) office handles regional permits alongside the national OSS system.
Required KBLI Codes
KBLI (Klasifikasi Baku Lapangan Usaha Indonesia) codes identify your business activities in Indonesia's licensing system.
| Code | Risk Level | Foreign Ownership | DNIB Status |
|---|---|---|---|
| 96120 | low | 100% | open |
Required Licenses & Permits
Licenses required to operate a beauty salon in Bali as a foreign-owned business.
Nomor Induk Berusaha(NIB)
business_id
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Nomor Induk Berusaha(NIB)
business_id
Estimated Cost
Free
Free through OSS system
Processing Time
1 business days
Validity
Varies
Get Your Free Compliance Checklist
Tailored to your specific business type, location, and nationality.
Step-by-Step Setup Process
The typical process for a Chinese entrepreneur setting up a beauty salon in Bali (10 steps).
Prepare Documentation
~7 daysGather your passport, proof of address, and any relevant business qualifications. Foreign citizens should also prepare apostilled documents if required.
Reserve Your Company Name
~3 daysSubmit 3 company name choices to the Ministry of Law and Human Rights (Kemenkumham) through the AHU Online system. Names must be in Bahasa Indonesia and at least 3 words.
Draft the Deed of Establishment
~7 daysWork with a local notary to prepare your company articles of association, including share structure and business activities (KBLI codes).
Register with Kemenkumham
~14 daysSubmit the notarial deed for legal entity approval. Once approved, your company exists as a legal entity.
Obtain NIB through OSS
~1 dayRegister on the OSS (Online Single Submission) system to get your NIB (Nomor Induk Berusaha) - your primary business identification number. Select the appropriate KBLI codes for your business activities.
Apply for Sector-Specific Licenses
~14 daysBased on your KBLI codes and risk level, apply for any additional permits required to operate your business type in your chosen location.
Pro tip: License requirements vary significantly by business type and risk level. Low-risk businesses may only need NIB, while high-risk businesses need multiple sector permits.
Open a Corporate Bank Account
~14 daysOpen an Indonesian bank account in the company name and deposit the required paid-up capital (minimum IDR 2.5 billion for PT PMA).
Register for Tax (NPWP & PKP)
~7 daysObtain your company Tax ID (NPWP) and register as a taxable entrepreneur (PKP) if your revenue will exceed the IDR 4.8 billion threshold.
Apply for Work Permits (RPTKA & IMTA)
~30 daysApply for the Foreign Worker Utilization Plan (RPTKA) and work permit (IMTA) through the Ministry of Manpower.
Obtain KITAS/KITAP Visa
~15 daysApply for your stay permit (KITAS for temporary, KITAP for permanent) through immigration. This allows you to legally reside and work in Indonesia.
Estimated Total Timeline
112 days(4 months)
Based on mandatory steps processed sequentially. Actual timeline may vary depending on government processing speeds and document readiness. Some steps can run in parallel.
Estimated Costs Breakdown — Bali
Approximate government and service fees adjusted for Bali (15% above national average). Excludes ongoing operational costs.
| Item | Low Estimate (IDR) | High Estimate (IDR) | USD Approx. |
|---|---|---|---|
| Company Establishment (Notary + Legal) | Rp 17.250.000 | Rp 40.250.000 | $1,113 - $2,597 |
| Kemenkumham Registration | Rp 1.150.000 | Rp 2.300.000 | $74 - $148 |
| NIB / OSS Registration(Free (government)) | Free | Free | Free |
| Nomor Induk Berusaha (NIB)(Free through OSS system) | Free | Free | Free |
| Work Permit (RPTKA + IMTA) | Rp 17.250.000 | Rp 28.750.000 | $1,113 - $1,855 |
| KITAS Visa | Rp 5.750.000 | Rp 13.800.000 | $371 - $890 |
| Virtual / Physical Office Address(Per year) | Rp 5.750.000 | Rp 34.500.000 | $371 - $2,226 |
| Total Estimated Range | Rp 47.150.000 | Rp 119.600.000 | $3,042 - $7,716 |
Note: Minimum investment capital for a PT PMA is Rp 10.000.000.000 ($645,161). This is separate from the setup costs above.
Visa & Work Permit Requirements
As a Chinesenational, you'll need the right visa to live and work in Indonesia while running your beauty salon.
Recommended: Investor
KITAS Investor
- Duration: 24 months
- Estimated cost: $1,500
- Company sponsorship required
Alternative: Work Permit
KITAS Investor
- Duration: 24 months
- Min. salary: $1,200/month minimum
- RPTKA approval needed first
Chinese citizens can enter Indonesia visa-free for up to 30 days or on a Visa on Arrival (VoA) for tourism. However, to work and operate a business, you must obtain the appropriate stay permit (KITAS/KITAP).
Guidance for Chinese Entrepreneurs
Country-specific information for Chinese nationals setting up a business in Indonesia.
Recommended Visa Pathway
Investor KITAS. Chinese nationals benefit from ASEAN+3 business facilitation. B211A available with sponsor.
Estimated processing time: 40 business days
Tax Treaty Information
China-Indonesia DTA active. China taxes worldwide income for residents. Transfer pricing scrutiny is high for Chinese-Indonesian business structures.
Trade Agreements & Bilateral Benefits
ASEAN-China Free Trade Area (ACFTA) provides tariff reductions. ASEAN+3 business facilitation framework applies.
Common Issues for Chinese Nationals
Language barrier is common - hire bilingual Indonesian-Chinese staff
Capital transfer from China subject to SAFE regulations (max $50,000/year for individuals)
Anti-Chinese sentiment exists in some regions - use local business partner
WeChat Pay/Alipay not widely accepted - need Indonesian banking
Document Requirements for Chinese Citizens
- Documents must be notarized by Chinese notary public and authenticated by Chinese Ministry of Foreign Affairs
- Criminal background check from local Public Security Bureau
- Education certificates must be verified by CDGDC
Embassy & Consulate
Chinese Embassy Jakarta: Jl. Mega Kuningan No.2. Chinese Consulates in Surabaya, Medan, and Denpasar.
Business Culture Tips
Indonesia has a significant ethnic Chinese population. Mandarin-speaking staff are available in major cities. Business dinners are common for relationship building. Gift-giving customs are similar.
Common Pitfalls & Tips
Operating on a Tourist Visa
Many foreigners try to start a business while on a tourist visa or VoA. This is illegal and can result in deportation and blacklisting. Always obtain proper business documentation first.
Using Nominee Structures Illegally
While nominee arrangements are common, undisclosed nominee structures violate Indonesian law. If foreign ownership is restricted, work with a qualified lawyer to find compliant alternatives.
Underestimating Capital Requirements
PT PMA companies have minimum investment and paid-up capital requirements. Ensure you meet these thresholds before starting the registration process for your beauty salon.
Ignoring Local Permits
Bali may have specific local permits (izin usaha) beyond national requirements. Check with the local DPMPTSP (investment office) for Bali-specific requirements.
Missing Tax Obligations
Indonesia has strict tax reporting requirements including monthly VAT returns, employee tax withholding (PPh 21), and annual corporate income tax. Non-compliance leads to significant penalties.
Frequently Asked Questions
Can a Chinese citizen own 100% of a beauty salon in Bali?
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Yes, Chinese nationals can own 100% of a beauty salon in Bali through a PT PMA (foreign-owned limited liability company). All 1 KBLI code required for this business type allow full foreign ownership.
What licenses do I need to start a beauty salon in Bali?
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You will need 1 license to operate a beauty salon in Bali. These include: NIB. All licenses are obtained through Indonesia's OSS (Online Single Submission) system and sector-specific authorities.
How much does it cost to set up a beauty salon in Bali?
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Costs vary depending on the specific licenses required and whether you use an agency. Budget approximately Rp 10,000,000 to Rp 50,000,000 for government fees and legal services, plus the Rp 10 billion minimum investment capital for a PT PMA.
How long does it take to set up a beauty salon in Bali?
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The typical timeline is 6-20 business days from start to fully operational in Bali. This includes company registration, obtaining all 1 required license, and visa processing. Working with an experienced agent can help run some steps in parallel and reduce the total time.
Do I need a local partner to start a beauty salon in Indonesia?
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No, you do not need a local partner. All 1 KBLI code for a beauty salon allow 100% foreign ownership, so you can establish a fully foreign-owned PT PMA in Bali without any Indonesian shareholders.
What visa do I need as a Chinese to run a business in Indonesia?
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You will need either an Investor KITAS (stay permit) or a Work KITAS, sponsored by your Indonesian company. Tourist visas and Visa on Arrival do not permit business activities. The Investor KITAS is typically recommended for business owners, while the Work KITAS is for employees of the company.
Can I operate my beauty salon from Bali remotely?
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Your PT PMA must have a registered physical or virtual office address in Bali. You can manage operations remotely as long as you maintain compliance with tax and reporting obligations, including monthly VAT returns and quarterly LKPM (investment activity reports). Directors must attend certain regulatory meetings in person.
What are the ongoing compliance requirements?
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You must file monthly tax returns (VAT, employee tax), submit an annual corporate tax return, renew applicable licenses (you have 1 to track), maintain LKPM (investment activity reports) quarterly, and keep company records with your notary. Non-compliance can result in license revocation and penalties.
Data verified against official Indonesian government sources
Every data point is marked with its verification status. We source from OSS.go.id, BKPM, Imigrasi.go.id, and Peraturan.go.id. This is informational guidance — always confirm with a licensed Indonesian lawyer for your specific situation.
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Disclaimer: This guide is for informational purposes only and does not constitute legal, tax, or professional advice. Regulations in Indonesia change frequently. Always consult with a qualified Indonesian lawyer and licensed tax consultant before making business decisions. Information on this page was last reviewed in March 2025 and may not reflect the most current regulations. IndonesiaCompliance is not a law firm and does not provide legal services.