Business licensing in Bali
These information pages can help you get started in learning about some of the laws and registration requirements that may apply to your experiences on Airbnb. These pages include summaries of some of the rules that may apply to different sorts of activities, and contain links to government resources that you may find helpful.
Please understand that these information pages are not comprehensive, and are not legal advice. If you are unsure about how local laws or this information may apply to you or your Experience, we encourage you to check with official sources or seek legal advice.
Please note that we don’t update this information in real time, so you should confirm that the laws or procedures have not changed recently.*
Could I be a business? When am I likely to be considered to be carrying on a business?
If you regularly provide a service in return for money (for example, if you regularly have people over for dinner and charge a fee for this), you are likely to be considered a “business actor” and conducting a “trade” under the Trade Law. You could be required to obtain a trade business license (Surat Izin Usaha Perdagangan or SIUP) for such services. We recommend that you contact the Investment and One-Door Integrated Service Office (PTSP) of Bali Province to find out whether you might be considered a “business actor” and conducting a trade, based on your specific circumstances.
What legal structure could I choose to use?
There are different legal structures you can use to set up your business. For example, you could choose to set up as a limited liability company or a limited partnership.
If you are not sure about the appropriate legal structure for your business, we recommend that you contact a lawyer for advice.
Are there any licensing requirements for businesses in Bali?
Yes. Generally you will be required to obtain a trade business license before carrying on a business in Bali. There is potential criminal liability (such as fines and/or imprisonment) for carrying on a business without any trade business license.
In addition, you will be required to obtain general corporate licenses such as a domicile certificate (Surat Keterangan Domisili Perusahaan or SKDP) and a company registration certificate (Tanda Daftar Perseroan or TDP). You should always check with the relevant authorities or speak to a lawyer to determine which registrations, reports, or licenses may be required for your business.
What if I am a business - Is there anything I need to be aware of when dealing with consumers?
Yes. You will need to comply with the Consumer Protection Law, which requires businesses to provide goods and services of a reasonable quality and prevents businesses from engaging in unfair trade practices and making unconscionable representations, such as providing misleading information about the goods or services supplied or the price of the goods or services. It is very important that you make sure that the information you provide to guests is accurate and not misleading.
This means that:
- The information you provide to guests should be clear and not misleading. You should not represent that the Experience contains features that you do not intend to provide.
- You should accurately and completely describe in your listing the main characteristics of your Experience, as well as what is included and any special terms and conditions (for example, my favorite local craft cocktail bar experience includes the first round of drinks, but guests must pay for additional drinks out of pocket).
- Your up-front price should be accurate, and you should not list an Experience at one price and then charge an additional fee when your guests get there.
- Material information likely to influence guests’ decision such as price and other sales conditions should be disclosed and not hidden in small print.
- You should not represent that your Experience is available at a discounted price for a stated period of time if you know that it will continue for a substantially longer time.
For more information, we encourage you to review the relevant laws and the Indonesian Advertising Guidelines which provides guidance on the standards of ethical conduct to be adopted.
Is there anything else I should think about?
Activities and Licenses
If your business involves serving/providing food or providing transportation or guiding tours, your business may be subject to a Tourism Business License (Tanda Daftar Usaha Pariwisata or TDUP).
If your business involves serving/providing alcoholic beverages, your business will be subject to an alcoholic beverages trading license (Surat Izin Usaha Perdagangan Minuman Beralkohol or SIUP-MB) or License of Premise Selling Alcoholic Beverages (Izin Tempat Penjualan Minuman Beralkohol or ITP-MB).
Please take a look at our other information sections to work out if any other rules might apply to your activity. Our sections on the various activity specific topics cover some of the typical activities, but it is not exhaustive. You should always check with the relevant authorities or speak to a lawyer to determine which registrations, reports, or licenses may be required for the service you are offering.
If you plan to hire employees as part of your business, you will have to consider amongst others the obligations imposed under the Manpower Law and other legal requirements regarding employment such as a mandatory manpower report, the enrollment of your employees in the Social Security Organizing Agency (Badan Penyelenggara Jaminan Ketenagakerjaan or BPJS) Manpower and BPJS Health. You should always check with the relevant authorities or speak to a lawyer to determine which registrations, reports, or licenses may be required for employees.
*Airbnb is not responsible for the reliability or correctness of the information contained in any links to third party sites (including any links to legislation and regulations).