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Andi Refandi
Andi serves as a Senior Account Executive on Emerhub’s global team.
Thinking about opening a restaurant in Bali?
Bali’s blend of local and international flavors makes restaurants tourist favorites, creating an exciting opportunity for foreign business owners.
This guide will walk you through the essentials of setting up your restaurant, from obtaining permits to navigating local taxes and hiring staff.
Setting Up a Restaurant in Bali
Before you can open your restaurant, you need to establish a legal entity in Bali.
Emerhub assists you with all the requirements for setting up a restaurant, from acquiring business identification number (NIB) to tax registration in Bali.
To open a restaurant in Bali, you need to follow specific requirements for foreign investments through a PT PMA (Foreign-Owned Limited Liability Company). The key requirements include:
- Capital Requirements: The required paid-up capital is IDR 2.5 billion. This amount must be fully paid-up and declared in your company’s financial statements.
- Seating Capacity: Your restaurant must have more than 50 seats.
- Business Classification (KBLI): Choose the appropriate restaurant business classification for your venture.
Emerhub can assist you with choosing correct business licenses to start your dream restaurant business in Bali.
The Business Licenses You Need for Your Restaurant In Bali
1. Location Permit
Getting a location permit (Surat Izin Tempat Usaha/SITU) for your restaurant is very important. This permit makes sure your restaurant is in an area meant for businesses and follows local zoning laws.
In Bali, you often need to pay for a lease 5 or 10 years in advance, so it’s crucial to check local zoning rules before signing the lease. To initiate the location permit application process, you must :
- Submit a map and detailed description of your restaurant’s location.
- Provide proof of ownership or a lease agreement for the property.
- Get an approval from local community leaders and the village office.
2. Building Permit (PBG)
If you’re building a new place or renovating, you’ll need a building permit, now called Persetujuan Bangunan Gedung (PBG). This ensures your plans meet local safety codes and accessibility standards. You can read more about how to obtain building permits in Bali.
3. Alcohol License
If you plan to serve alcohol, you’ll need an alcohol license. There are different types of alcohol licenses depending on the kind of alcoholic beverages you plan to serve:
SIUP MB (Surat Izin Usaha Perdagangan Minuman Beralkohol): Required if you sell alcoholic beverages.
IUTM-B (Izin Usaha Tempat Menjual Minuman Beralkohol): If you serve alcohol on your premises.
- Type A License: Allows you to serve beer.
- Type B License: Covers wine and spirits.
- Type C License: Allows the sale of high-volume alcohol.
How to obtain alcohol license in Bali:
- Submit detailed plans of your alcohol storage and service areas.
- Provide a security plan for the safe storage and service of alcohol.
- Obtain approval from the local police and community leaders.
4. Import Permit as a Producer
If needed, you can apply for a Producer Import Permit (API-P) once you get your Business Identification Number (NIB). This permit is useful for importing capital goods and products since it exempts you from import duties.
5. Working Permit
The positions you can hire through your restaurant depend on the KBLI (Indonesian Standard Industrial Classification) code assigned to your business. For a restaurant, you can hire the following positions:
- Chef
- Marketing Manager
- General Manager
- Finance Manager
- Technical Manager
- Operations Manager
- Procurement Manager
Choosing the Correct KITAS for Opening a Restaurant in Bali
Apply for an Investor or Working KITAS:
- Investor KITAS is a temporary stay permit for foreign investors. To qualify, you need to make a significant investment in your company. The Investor KITAS permits multiple entries into Indonesia, making it convenient for your business operations.
- Working KITAS is necessary if you will be actively working in your restaurant, and must be sponsored by your Indonesian company.
Learn more about the correct business visas to operate your restaurant business in Bali.
How Emerhub Can Assist?
We assist you in every step of the process, from company registration to license acquisition and tax compliance. Our team of experts ensures that your business adheres to all local regulations, allowing you to focus on delivering dining experiences.
Contact us today to start your journey in opening a successful restaurant in Bali.
