Home Blog How Do You Start A Spa Business in Bali? Bali | Business Licenses | Business Setup How Do You Start A Spa Business in Bali? InCorp Editorial Team 12 September 2024 7 minutes reading time Table of Contents Is Bali A Good Place to Start A Business? The Prospects of Opening Spa Business in Bali What to Prepare for Your Spa Business in Bali Requirements for Setting Up a Spa Business in Bali 10 Ways to Open Your Best Spa in Bali Start Opening Your Spa Bali Business with InCorp Starting a Spa Bali business offers the unique opportunity to tap into the island’s booming wellness industry. With Bali’s reputation as a global hotspot for relaxation and rejuvenation, setting up a spa in Bali is a promising venture. Here’s a guide on how to get started. Is Bali A Good Place to Start A Business? It may be perfect if you dream of starting a Spa Bali business. From January to July 2024, Bali saw a remarkable influx of 3,538,899 foreign tourists, a 22.18% rise compared to last year. Monthly data reveals that the average growth rate for foreign visitors in 2024 has reached an impressive 48.95%, with approximately 505,557 foreign tourists arriving each month. This surge in tourism presents an excellent opportunity for Bali’s spa industry to thrive as more visitors seek relaxation and wellness experiences during their stay on the island. The Prospects of Opening Spa Business in Bali While running a successful spa and sauna business in Bali is more complex than it may sound, its prospects can be advantageous. Foreigners can indeed fully own a Spa Bali business under a PT PMA (Penanaman Modal Asing), which allows for 100% foreign ownership. To set up a PT PMA, foreigners must meet a minimum investment of IDR 10 billion (excluding property) and follow specific steps, including obtaining a business license (NIB) and securing the necessary operational permits for the spa, which can vary by location. READ MORE:Starting A Lifestyle Business in Bali: A Simple GuideWhat Does Your Business Address in Bali Say about You and Your Business? What to Prepare for Your Spa Business in Bali Several critical steps must be followed to ensure compliance and business readiness when launching a Bali spa massage business as a foreign-owned entity. Get Your Space and Equipment Ready Your spa environment must feel safe and comfortable for your customers. You must always meet Indonesia’s quality and safety regulations to ensure flawless performance. Here’s a checklist to get your spa facilities in order: Test and make sure you have a functional music system Validate that your equipment and machines are working properly Adequate installation of POS and inventory systems The exit and fire safety equipment of your premises are visible, working, and marked Ensure a safe and functional electrical system First-aid kits are available Prepare a Marketing Strategy A marketing strategy should already be in place before the first day of your spa operation. The strategy can include the following items: Posts on social media to create anticipation before the opening Flyers distribution Local ads Networking with local communities, organizations, and clubs Discounts and promotions on the first day or certain period to attract customers Have Administrative Capacities A Spa Bali business setup involves paperwork, business licenses, and mundane administrative tasks. If these critical tasks are not handled properly, they can harm your business. It would be best if you made sure these administrative tasks below are well taken care of: All accounting records, such as receipts and invoices, are kept well Relevant business licenses and permits are displayed accurately Proper leasing agreement Property insurance If your business cannot perform these tasks effectively, consider outsourcing them to a third party. Other factors you should consider before the grand opening of your Spa Bali business: Employee licenses and employment contracts Trained customer service representatives and employees Work safety and hygiene requirements Employee payroll and benefits with the proper accounting system Financial projections for your business Company’s bank account Qualified accountants and consultants for tax reporting READ MORE:Start Your Digital Agency in BaliStart a Clothing Brand in Bali: A Guide Requirements for Setting Up a Spa Business in Bali You must also consider the requirements for a Spa Bali business. In general, the requirements are summarised as follows: Space and Equipment You need sufficient space for your spa’s operations, including equipment, treatment rooms, and facilities to accommodate activities. Ensure that all safety and quality standards mandated by local regulations are met. Lease Period A minimum lease period of three years is typically required, particularly if you are setting up a foreign-owned company (PT PMA). This allows stability for business operations. Permits and Certificates Building Permits (PBG): This permit ensures your property complies with Bali’s zoning and safety regulations. The PBG has replaced the previous IMB system and is mandatory for construction or renovation. Business Licenses: Depending on your spa services, you will need a location permit (SITU) and other relevant tourism and local licenses. Business Structure PT PMA: If you are a foreign investor, setting up a PT PMA allows you to own 100% of the Spa Bali business. This requires significant capital investment and legal procedures. Local Company (PT): If opting for a local PT, different ownership and capital requirements apply, but it is a more locally driven business structure. Tourism and Local Licenses Operating a spa may require additional licenses depending on the nature of your services, such as specific health and safety approvals. Compliance with local tourism and environmental regulations is crucial. 10 Ways to Open Your Best Spa in Bali Bali, known for its serene beauty and holistic wellness practices, is ideal for establishing a thriving spa. Here are ten important strategies to help you open your best spa in Bali: Leverage Local Expertise Partner with Balinese therapists: Their deep knowledge of traditional healing techniques and cultural nuances will enhance your spa’s authenticity. Collaborate with local suppliers: Source high-quality, natural ingredients and products from Bali’s rich ecosystem. Create a Serene Atmosphere Design a tranquil environment: Incorporate Balinese elements like stone carvings, bamboo accents, and lush gardens to create a sense of peace and harmony. Pay attention to sensory details: Use soothing music, aromatherapy, and soft lighting to enhance relaxation. Offer Unique Treatments Combine traditional and modern techniques: Develop signature treatments that blend Balinese healing rituals with contemporary spa practices. Cater to specific needs: Offer specialized treatments for stress relief, rejuvenation, and detoxification. Prioritize Sustainability Use eco-friendly products: Opt for natural and organic ingredients that minimize environmental impact. Implement sustainable practices: Reduce waste, conserve energy, and support local communities. Provide Exceptional Customer Service Train staff in hospitality: Ensure your team is courteous, knowledgeable, and attentive to guests’ needs. Offer personalized experiences: Tailor treatments and services to individual preferences. Leverage Digital Marketing Create a strong online presence: Develop a website and social media channels to showcase your spa’s offerings. Utilize SEO and content marketing: Optimize your online content to attract potential customers. Partner with Local Businesses Collaborate with hotels and resorts: Offer your spa services as a complementary amenity. Network with tour operators: Promote your spa as a must-visit destination for tourists. Offer Wellness Retreats and Packages Create comprehensive programs: Combine spa treatments with yoga, meditation, and healthy dining options. Target specific markets: Design packages for couples, families, or corporate groups. Prioritize Health and Safety Adhere to hygiene standards: Maintain a clean and sanitized environment. Ensure therapist qualifications: Verify the credentials of your spa therapists. Continuously Improve Seek customer feedback: Gather input from guests to identify areas for improvement. Stay updated on industry trends: Attend spa conferences and workshops to learn about new techniques and technologies. Guide to Doing Business in Bali & Lombok Mailchimp Free eBook Bali & Lombok Contact Full NameEmail I have read InCorp's Privacy Policy and agree to InCorp using my information provided to contact me about related content, and services.*Download Start Opening Your Spa Bali Business with InCorp Are you ready to transform your spa dreams into a reality in Bali? With InCorp, you can confidently navigate the complexities of setting up and operating your spa business. Our comprehensive services include: Company Registration: We’ll help you choose the most suitable legal structure for your spa business and ensure compliance with local regulations. Business Licensing: Our team will expedite the process of obtaining essential permits and licenses, saving you time and effort. Immigration Services: We’ll handle the immigration procedures for your foreign employees, ensuring a smooth onboarding process. Fill out the form below to successfully launch your Spa Bali Business. Read Full Bio Verified by David Susandi Branch Manager – Bali Office at InCorp Indonesia Holding 11 years of experience in various roles, including project manager, operational manager, and corporate strategist, David Susandi is a prominent figure for many entrepreneurial organizations expanding in Indonesia. Frequently Asked Questions What is a CV? CV (Commanditaire Vennootschap) is a proprietary business entity that houses several individuals to run a business. Can a foreigner become a director or commissioner of a company in Indonesia? Yes, in a foreign-owned (PT PMA) company, a foreigner can be a director or a commissioner Can investors own shares with preferential rights? Under Indonesian Company Law, shareholders can hold shares with various preferential rights, such as voting rights, nomination rights for board members, priority dividend or liquidation proceeds, and options for conversion or withdrawal after a set period. Are there investment facilities provided for foreign investors in Indonesia? A newly established PMA company in Indonesia is typically provided with import facilities, tax holidays, tax allowances, or investment allowances. Import facilities Investors in Indonesia, particularly in manufacturing, may benefit from import tax exemptions for capital goods and raw materials through the Master List Facility. The imported goods must meet specific criteria, such as not being produced locally or not meeting industry demand despite local production. Tax holiday The government offers CIT reductions of 50% or 100% for 5–20 years for listed pioneer industries, based on investment value. After this period, a CIT reduction of 25% or 50% applies for two fiscal years. Non-listed sectors can also apply by meeting criteria demonstrating pioneer industry status. Pioneer industries are industries that have a wide range of connections, provide additional value and high externalities, introduce new technologies, and have strategic value for the national economy. Tax allowance For companies in certain designated areas or regions, the government may provide the following tax concessions: Net income reduction up to 30% of the amount invested, prorated at 5% annually for six years, on condition that the assets invested are retained for the same duration. Accelerated depreciation and/or amortisation deductions An extension of tax losses carried forward for a maximum of ten years A 10% (or lower if treaty relief is available) withholding tax rate on dividends paid to non-residents The applicant eligible has to meet high-level-criteria for the above tax facilities: High investment value or for export purposes High manpower absorption High level of local content Investment allowance The government offers a reduction in net income of up to 60% of the investment, distributed at 5% annually over six years of commercial production, contingent upon the retention of invested assets for the same duration. To qualify, applicants must meet business line eligibility criteria and employ a minimum of 300 Indonesian workers in the project. Super deduction This facility could be granted to certain businesses, such as: 60% reduction in net income of the amount of tangible fixed assets invested for labor-intensive industries, distributed throughout a certain time frame. Up to 200% reduction in the gross income of the amount spent for human resources development in certain competency activities. Up to 300% reduction in gross income of the amount spent for certain R&D activities in Indonesia. Get in touch with us. 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