Guide to opening an architecture firm in Bali

Bali is one of the most popular locations in Southeast Asia for real estate development, thanks to Indonesia’s thriving economy and, more specifically, Bali’s growing tourist and expat community.

The rise in popularity of the real-estate market therefore makes Bali an ideal location for opening an Architecture firm, as many developers rely on architecture services to ensure that their building plans are structurally sound and up to local compliance standards. Architects are also required for project approval. 

In Bali, it is a serious offense to provide architecture services without a professional license. This guide will walk you through the process of opening an Architecture firm in Bali and ensuring that it is certified.

What is SBU certification in Bali?

In Bali, architecture firms are regulated specifically by the Ministry of Public Works. As such, if you wish to operate this type of business, then you must be properly certified to ensure that you meet Indonesian service standards. 

The business entity certificate is known in Indonesia as the Sertifikasi Badan Usaha (SBU) and is issued by the Lembaga Pengen Jasa Konstruksi (LPJKN), which is the local term for the construction services development agency. The SBU is essential as it certifies that a business operating in construction-related services has the right Indonesian accreditations and licenses.

As an architecture firm, you will be responsible for the submission of the mandatory PBG and SLF building permits for your client’s construction projects, which require a certified architect. 

What legal entities can open a certified foreign architecture firm?

Open an architecture firm in Bali as a PT PMA

As a foreign architect seeking to open your own business, you will need to register a legal entity if you wish to be certified. As a foreigner, the most common entity type that you can consider is a limited liability PT company with foreign ownership which has the following requirements:

• Up to 67 % foreign ownership if shareholders are not from ASEAN countries.
• Up to 70 % foreign ownership is shareholders from ASEAN countries.
• The remaining local shares must be held by an Indonesian SBU-holder company that also holds a B1 classification (minimum capital and 10-year cumulative capital IDR 50 Billion) 
• Paid-up capital of at least IDR 2.5 Billion which is part of an IDR 10 billion investment plan

Emerhub’s company registration service can handle this process for you. Our team of experts is well-versed in Indonesian regulations and can ensure that your legal entity meets all the requirements for opening an architecture firm.

Run a small architecture firm as a Special Purpose Vehicle 

A special purpose vehicle (SPV) is another option offered for foreigners seeking to open a company that operates in a restricted industry, as is the case with architecture. This can be seen as a lower-cost, less complex alternative to the PT PMA, as the paid-up capital is only IDR 100 million.

Despite being a simpler alternative to enter the market, the SPV is also riskier as it limits foreign shares at 49%. This means that majority shares must be held by a local company or director that registers the company on your behalf. Emerhub can act as your SPV to ensure a compliant and secure business operation.

Open a foreign architect representative office (BUJKA)

Opening a foreign architect representative office (BUJKA) in Bali is also a potential alternative legal entity that you could choose that qualifies for SBU certification.  A BUJKA acts as an extension of a foreign parent company, therefore it has stricter company requirements which makes it more popular with larger foreign companies.

Unlike the previous options, there are no requirements for paid-up capital. You must however meet more field-specific requirements:

• You must have a licensed architecture firm in your home country
• You must acquire a recommendation letter from your country’s embassy in Indonesia
• Your annual turnover in your home country must be at least IDR 10 billion

How to acquire SBU certification 

Available sub-classifications for architect firms in Bali

Once you have determined under which legal entity you will be registering your Architecture firm you will need to select the corresponding  sub-classification(s) that specifies the types of services you will be offering:

Sub-classification	Description
AR001	Architectural service for residential and non-residential buildings
AR002	Other architectural services
AR003	Interior design service for buildings
AL001	Space planning
AL002	Area planning
AL003	Urban planning
AL004	Landscaping

It is important that you properly classify your architecture firm in Bali, as this industry is regulated. Providing services that don’t match your selected sub-classification could result in penalties, legal consequences, and the withdrawal of your certification.

SBU Certification requirements

For an architecture firm to be eligible for SBU certification in Bali, it must meet additional business requirements in terms of company structure and applications. Luckily, Emerhub’s advisors are well-versed in setting up companies in Bali and can help you with each of these steps:

1. An architecture firm must provide:
   1. One Chief Representative Office, who is an Indonesian National
   2. One person as the Technical Person in charge for the classification of Architect (PJTBU)
   3. One person as the Technical Person in charge for every sub-classification (PJSKBU)
2. Acquiring Surat Keterangan Ahli (SKA), which is a certification that your PJTBU and PJSKBU nominees have adequate experience related to their appointed technical classifications
3. Registering for Karty Tanda Anggota Asosiasi association membership (Indonesian Architectural  Associations)

From company registration to outsourcing the right technical representatives, Emerhub’s advisors can simplify the process of opening an Architecture firm in Bali and ensure full compliance with Indonesian regulations. Contact us via the form below and we’ll put you in touch with one of our experts!