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I need an advise how to start a small busines

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fifitadog

Since I am about to retire in Bali, my daughter in WA has come up with the idea to start her own brad with children clothing online and she want me to help!! so that I don't get bored over there!!
Can anyone give me a starting point on this?? I will appreciate your help!

JCollins

Firstly I would agree on a commission with your daughter, as manufacturing clothes in Bali is hard work and often fraught with problems and can be stressful when things go wrong. Nevertheless it is a good idea for your daughter to do this. If your daughter is not designing her own styles then she can send you samples from Aussie or you can buy them in the many shops in Kuta that specialize in kids clothing such as Kuta Kidz and Indigo Kids. You just need to find a factory and place your orders. In Bali we often buy the fabric directly from the supplier and have it sent to the garment factory.

fifitadog

Thank you I do Appreciate your reply!!

Ubudian

I would strongly advise you to not get involved with any sort of business activities once you retire on Bali under a retirement visa…which is the visa you have previously said you will be on. 

The retirement visa strictly forbids any sort of business activity, and you would be very vulnerable, especially if any of your competitors caught wind of what visa you were on.  Receiving any sort of commission for any work you did for your daughter here would be an extreme violation of your retirement visa.  Don’t even think about it, and totally disregard that prior suggestion.  If caught (and that probability is high) you’d be looking at possible jail time, a fine up to US $50K and certain deportation.   

Never before in my 17 years of 24/7 living on Bali have I ever seen immigration being so strict about visa violations, and never before have I seen such keen monitoring of expat activities.  Ask any expat who has been living on Bali for a while and they will say the same thing.  In the old days we all could stretch the rules a bit, but those days are long gone.   

If you’re concerned about keeping busy, then consider volunteer work with any of many licensed Yayasans or NGO groups operating on Bali.  Also, consider joining the local Rotary nearest to where you retire.  Just be certain that any NGO or Yayasan is properly licensed as such, and you’ll be fine.

fifitadog

Thank you Roy! I thought that because is all in her name it will be ok just contacting locals that might help her!!

Ubudian

As long as you receive no compensation (including commissions) and that sort of activity was  periodic (now and then), and not a regular activity, you'd most likely be OK.  But, you would literally still be in violation of the law because business related activity is simply not allowed under a retirement visa.

fifitadog

ok Thank you Roy! I better don't get into hot water!!!

kenjee

Hello fifitadog

Kindly note that some posts, from a participant that had nothing to do with your thread, have been removed.

Regards
Kenjee
Expat.com

JCollins

Don't worry fifitadog, Bali has so much to offer and see that I am sure you will never ever get bored. Good luck with your move.

happyhour

Its true, on a retirement visa you are not allowed to work at all.

You even must sign a statement (Surat Pernyataan Lansia Dan Tidak Bekerja) that you don't work on the retirement visa (KITAS Lansia) in order to get a retirement visa approved.

As Roy said correctly, you can face up to 5 years jail time and paying up to Rp 500.000.000 if get caught.

BaliRadar

Hi fifitadog,

It's a big challenge but if your daughter is serious to open a small business in Bali it's possible if she's ready to overcome all the obstacles.
I could write a book about the subject but I will simply give you one advice. Unless the business has an important capital ($ 50,000 USD cash and more which would be a foreigner company PMA) it's necessary to find 2 Indonesians (or Balineses) that you trust to be partners of the business. Local business (P.T.) required 2 Indonesians partners (By law a P.T. required a lower capital to be deposit in an Indonesian bank account).

Not only for the registration entity of the business with a notary but also for language barrier to deal with different Indonesian bodies.

There's also many other important reasons to have Indonesian partners for your business which I won't express in this forum because it's a delicate subject.

It's a wonderful journey opening a business in Bali,   trials and errors will be done by doing it and that's how we learn best... :)

Best luck

Ubudian

Unless I’ve got this all wrong, the idea that fiftadog and her daughter were considering was to run this business on the internet, and having it based in Australia. 

In that case there would be no need to establish an Indonesian company (PT or PMA), rather fiftadog would only need a business visa.  But, as fiftadog is moving to Bali on a retirement KITAS visa, she could not perform business related activities here on behalf of her daughter’s business.

Good idea about that book, but as you surely already realize, once the ink was dry it would be close to useless, as the rules would almost certainly be changed, yet again.   :o

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