The waters surrounding Bali are great for all sorts of water activities. Given the many natural attractions underwater, facilitating water sports is a popular business. If you’re interested in how to set up a diving center in Bali, this is the right article for you.
We will discuss foreign ownership of diving centers and other water sports facilities in Bali. In addition to these, we will answer some of the most common questions about having a diving center in Bali.
Table of contents
Can a foreigner own a diving center in Bali?
Diving centers fall under the business classification for water tourism. This classification allows a maximum of 49% foreign ownership from non-ASEAN countries. Investors that come from ASEAN countries may own up to 70% of this type of business. To open a diving center in Bali, a foreign investor must have an Indonesian partner.
Under this classification, investors can operate businesses involving the following, among others:
Business Registration for a Diving Center in Bali
Requirements to Open a Diving Center in Bali
As mentioned earlier, this kind of business cannot be 100% foreign-owned. This means that you will need a local partner. A safe alternative is to use a special purpose vehicle set up by Emerhub.
A special purpose vehicle is a local entity set up to hold shares on your behalf. As your special purpose vehicle in Bali, Emerhub will set up a legal structure to protect your rights as the business owner.
You must also have a valid business address before you can register your business in Bali. The building to which the address refers must have a building permit for commercial activities.
You cannot register a diving company using a virtual office address. A diving center must have an actual office. You can rent office space in Bali or obtain a business property using your company name.
Minimum Capital Requirement for a Diving Center
The minimum capital requirement for a foreign-owned business in Indonesia is IDR 2.5 billion (approx. USD 170,000). Note that in Indonesia, if a foreigner owns any part of a company, no matter how little, it is a foreign-owned company.
Documents and Licenses Needed for a Diving Center in Bali
Before you can begin to operate your business, you will need the following:
- Articles of Association
- Approval from the Ministry of the Law and Human Rights to the Articles of Association
- An operational license from the OSS, known locally as Nomor Induk Berusaha (NIB)
- Company domicile, known locally as Surat Keterangan Tempat Usaha (SKTU)
- Company tax, known locally as Nomor Pokok Wajib Pajak (NPWP)
- Tourism license, known locally as Tanda Daftar Usaha Pariwisata (TDUP)
- Environmental licenses, known locally Usaha Pengelolaan Lingkungan (UKL) and Usaha Pemantauan Lingkungan (UPL)
Emerhub can also help you obtain the above documents in addition to facilitating your company registration.
Frequently Asked Questions About Operating a Diving Center in Bali
Yes, a diving company can own a boat. Note that you will need to register boats above 7 GT.
Yes, you can register your boat under the name of the company.
The requirements for boat registration are the following:
– Application submitted to the Port Authority (KSOP) Class II Benoa
– Copy of the boat’s measurement letter
– Proof of ownership
– Owner’s identity
– Certificate of the ship
Diving companies can sponsor KITAS for directors, commissioners, managers, and advisor positions. Per current regulations, diving companies cannot sponsor KITAS for diving instructors. At the moment, only impresario companies can sponsor KITAS for diving instructors.
No, you cannot work as a diving instructor. If you have an investor or director KITAS, you can only perform tasks related to the management of your company.
You can only get a KITAS as a diving instructor through what are known as impresario companies. Emerhub can provide assistance in applying for a KITAS as a diving instructor.
No, you will have to apply for additional operational licenses in Komodo and Raja Ampat.
Are you ready to set up a diving center in Bali? Our experts will take care of company registration and acquiring licenses for your business. We will also check on your property to make sure it is suitable for your business. Get in touch with us by filling out the form below or by sending an email to [email protected].