Every business in Bali must have a registered address. Many foreigners work remotely in co-working spaces or other areas of their choosing. Yet, an official address is still required for company incorporation in Indonesia.
A virtual office in Bali allows company set up without making you rent a physical office space of your own. You can use an already registered address for the documentation of your company. Meanwhile, saving money from having to rent an actual office.
Regulations across districts vary to a considerable extent. Thus, choosing the right virtual office location is a must. In the below article, we pinpoint the best location and explain the reasons behind.
Register a Company by Using a Virtual Office in Bali
A registered address takes you one step closer to company registration in Bali. Let’s set an example of the incorporation process of a foreign-owned company (PT PMA). Here is a step-by-step overview of the trading and service sector:
Note that from the above, the most time-consuming step is the PMA Recommendation. The Office of Investment and Integrated Licensing One Door Badung Regency issues PMA Recommendation.
The issuance comes after the decision of the Regent of Badung and the processing may take 4 or more months. The described step is especially time-consuming in the Badung area.
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Best District in Bali for Business Address
Company registration varies between districts. Which is especially good to keep in mind when choosing the area to process company licenses. Bali consists of districts (Kabupaten). Note that a district is governed by a municipality that issues local licenses.
For example, Badung (including Kuta and Seminyak) is very slow in issuing licenses. Especially for foreign investment. Besides that, for many business classifications, you may need to fill additional requirements. The most recommended area to get your licenses is Denpasar.
Why your virtual office should be in Denpasar
#1 Faster Company Registration
Incorporation process in Denpasar is fast. To set an example, it is around 4-6 months faster in Denpasar than in Badung. One of the reasons being that PMA Recommendation is not part of the requirements in Denpasar. Which comes to out-of-pocket fees to the authorities, it also costs about 300$ less on average.
#2 Fewer Costs
Using a virtual office in Denpasar also helps keep costs under control. Let’s start with maintaining one of your highest expenses – office rent. By using a virtual office, you do not need to rent physical office space and save a significant amount of money. Keeping in mind, it is not uncommon to ask five years of rent in advance in Bali.
There is one more way for you to save money. Keep the out-of-pocket fees for the Klian Recommendation for company’s Domicile Letter low. In Denpasar the fund for it is around $US 290.19 (IDR 4,000,000). Yet, in Badung you can consider the amount to be around $US 508.3 – 653.5 (IDR 7,000,000-9,000,000).
#3 Easy to Reach the Authorities
A survey is necessary when approving the Domicile Letter. Denpasar is appealing especially with business purposes in mind. Meanwhile the area is known to be more local. Thus, the authorities are not as occupied as in other areas and you are able to process documents faster.
Virtual Office in Bali Must Have a Building Permit
A virtual office must also have a building permit (IMB). An IMB states the purpose of the building and what you may use it for.
Rest assured using Emerhub’s virtual office in Denpasar. Our property already carries a valid IMB with the function “Office”. In fact, Emerhub serves as the only international virtual office with an IMB in Denpasar area. Contact us in Bali and see if you meet the criteria to register for our virtual office address.
Emerhub has a registered office available to service you immediately. Our legal team in Bali is here to answer any questions as well as assist with company registration.