Yoga Retreats in Bali

Yoga retreats in Bali involve several legal considerations to ensure your yoga event complies with local regulations. Bali, in Indonesia, is a popular destination for yoga retreats. People choose Bali because of its awesome natural landscapes, lush green rice terraces, tropical forests, and beautiful beaches. These serene and wonderful surroundings provide an ideal environment for yoga and meditation.

Besides its surroundings, Bali is known as the island of Gods and is home to many Buddhist and Hindu temples, which create spirituality in the atmosphere.

This aligns well with yoga principles and attracts those seeking a deeper connection with themselves and their surroundings.

Also, the weather in Bali is warm throughout the year. This tropical climate is conducive to outdoor yoga practices, and many retreats incorporate outdoor sessions to take advantage of the natural surroundings.

How to Legally Hold Yoga Retreats in Bali

Now that you know Bali’s outstanding culture and surroundings, you think of legally holding yoga retreats in Bali. Is that easy? Not that easy. As you prepare to visit another country and do business, you need specific rules and regulations. You can term them as legal formalities you must acquire and fulfil before legally holding yoga retreats in Bali.

Licenses and Permits

• Business Registration
• Visas and Work Permits
• Tax Obligations
• Land Use and Permits
• Event Permits
• Insurances
• Comply local laws

1. Business Registration

To have yoga retreats in Bali means you are doing business, right? Thus, you need to have a business license.

To legally host a yoga retreat in Bali, you must register a business entity. There are two options:

• PT PMA (Foreign-Owned Company) – If you plan to operate long-term, a PT PMA (Perseroan Terbatas Penanaman Modal Asing) allows foreign ownership, but requires a minimum investment of IDR 10 billion (~US$ 660,000).
• Local Partnership (PT) – If you do not want to establish a PT PMA, you can partner with a locally registered business (Indonesian-owned PT) to legally operate under their business license.

Business registration must be completed via the Online Single Submission (OSS) system, managed by BKPM (Indonesian Investment Coordinating Board).

New Regulation (2024 Update):

As of 2023, Indonesia has increased enforcement against Nominee Agreements, requiring genuine local partnerships for legal compliance. Ensure your local partner is genuinely involved in the business to avoid legal risks.

More info: Indonesian Business Licensing & OSS

2. Visas and Work Permits

It would help if you got a temporary residence permit for yoga retreats in Bali.

If you plan to work in Indonesia or stay for a few months, you need a KITAS limited-stay permit.

Remember that your KITAS must be related to the retreat’s subject, and only a KITAS based on a work permit allows you to organize one.

When applying for your passport, it must be valid for at least 18 months and have at least a few empty pages.

If you get a new passport during the KITAS application process, the KITAS process must be redone. Ensure the passport is valid for at least 21 months for the application process.

Visa Requirements for Yoga Retreat Organizers:

• B211A Visa (Business/Social Visit Visa) – Suitable for short-term retreats (valid up to 180 days). However, it does NOT allow receiving payments in Indonesia.
• KITAS (Limited Stay Work Permit) – Required if you are running multiple retreats per year or collecting revenue within Indonesia.
• Investor KITAS – For business owners establishing a PMA company, this exempts you from work permit obligations.

New Regulation (2024):

Indonesia is strictly enforcing visa regulations, and foreigners conducting paid retreats without a work permit risk fines, deportation, or blacklisting. Running paid retreats without the correct work permit can result in fines, deportation, or blacklisting.

Note that non-resident directors and commissioners don’t need a work permit in Indonesia.

Ensure you and any foreign instructors have the necessary visas and work permits to conduct activities in Bali. Work with a legal consultant to understand your specific situation’s visa requirements and application processes.

3. Indonesian Tax Requirements for Yoga Retreats

You may need to understand and comply with Indonesian tax regulations.

1. Tax ID (NPWP) – All businesses must register for a Taxpayer Identification Number (NPWP).
2. Value-Added Tax (VAT) – Services, including yoga retreats, are subject to 11% VAT (since 2022).Income Tax – If you earn revenue from Bali-based participants, you may be subject to Indonesian income tax (PPh 21/26).
3. Withholding Tax for Foreigners – Payments to foreign instructors or overseas suppliers may require a 20% withholding tax unless a tax treaty applies.

As you are now conducting business by holding yoga retreats, this may include registering for taxes, obtaining a tax identification number (NPWP), and fulfilling other tax obligations. Keep detailed records of your financial transactions related to the retreat.

• You will likely need to obtain a Tax Identification Number (Nomor Pokok Wajib Pajak or NPWP) for your business. This is a unique number assigned to entities for tax purposes.
• In Indonesia, Value Added Tax (VAT) applies to certain goods and services. Check whether your yoga retreat services are subject to VAT and understand the rate applicable.
• Retreat organizers must comply with Indonesian tax laws, including registering for an NPWP, paying 11% VAT on retreat services, and withholding tax for payments to foreign instructors.
• You may need to withhold tax if you pay non-resident individuals or businesses (such as instructors, vendors, or service providers).
• Stay informed about the required tax reporting deadlines and comply with all reporting obligations.
• Be aware of any local taxes or levies that may apply to your business activities. Local regulations can vary, so you must check with the relevant authorities in the area where you plan to host the retreat. If you hire employees to assist with the retreat, be aware of your obligations regarding payroll taxes, social security contributions, and other employment-related taxes.

As said above, maintain accurate and organized financial records. Proper record-keeping is essential for tax compliance and can help in the event of an audit.

Check if any tax treaties between Indonesia and your home country may affect your tax liabilities. Engage the services of a local tax professional or accountant who specializes in Indonesian tax law. They can provide tailored advice based on your specific business structure and activities.

4. Land Use and Permits

When organizing a yoga retreat in Bali, you must consider the land use and obtain the necessary permits to ensure your event complies with local regulations.

Retreat venues must comply with zoning regulations, and land use permits must be secured from local village offices and provincial authorities. This may involve coordination with the village or subdistrict office and the Bali Provincial Government.

5. Event Permits

Depending on the size and nature of your yoga retreat, you may need event permits. Check with local authorities to understand the specific licenses required for organizing events in the chosen location.

An environmental impact assessment (AMDAL) may be required for larger events or those held in environmentally sensitive areas. This assessment evaluates the potential impact of your activities on the environment.

If you plan to construct temporary structures or alter existing buildings, check if you need building permits. This is especially important for larger retreats with infrastructure requirements.

Also, familiarize yourself with any additional local regulations that may apply to your location. These can vary between regions in Bali.

Working closely with local authorities, including village officials and relevant government departments, is essential to understand and fulfil all the requirements.

6. Insurances

When conducting a yoga retreat in Bali, you must have the appropriate insurance coverage to protect yourself, your participants, and your assets. While specific insurance requirements can vary based on factors like the size of your retreat, the activities involved, and the location, here are some common types of insurance you should consider:

1. Liability Insurance: Liability insurance is crucial to cover potential injuries or accidents during the retreat. This can include coverage for bodily injury, property damage, and legal expenses. Ensure the policy is comprehensive and tailored to the specific activities of your retreat.
2. Professional Indemnity Insurance: If you provide professional services such as yoga instruction, consider professional indemnity insurance. This type of insurance protects you if a participant claims that your professional advice or services caused them harm.
3. Cancellation Insurance: Cancellation insurance can provide coverage if you must cancel the retreat due to unforeseen circumstances, such as natural disasters, illness, or other emergencies. It can help reimburse you for pre-paid, non-refundable expenses.
4. Travel Insurance: While participants are generally responsible for their travel insurance, it’s a good idea to recommend or require that they have coverage for trip cancellations, medical emergencies, and other travel-related issues.

The other insurances can include:

• Property Insurance: If you bring valuable equipment or have invested in temporary structures for the retreat, property insurance can protect against losses or damage to your assets.
• Workers’ Compensation Insurance: If you hire staff or assistants for the retreat, you may need workers’ compensation insurance to cover medical expenses and lost wages in case of work-related injuries or illnesses.
• Vehicle Insurance: If you provide transportation services as part of the retreat, ensure that the vehicles are correctly insured. This includes coverage for accidents, injuries, and property damage.
• Event Insurance: Consider event insurance to cover a range of unforeseen circumstances, including venue issues, vendor cancellations, or other disruptions that could impact the retreat’s success.
• Health Insurance for Participants: While not your direct responsibility, it’s a good practice to recommend that participants have health insurance coverage to handle medical expenses during their stay in Bali.
• Legal Assistance Insurance: Insurance coverage for legal assistance can be beneficial in the event of legal issues. This may include coverage for legal fees and related expenses.

Before purchasing insurance, carefully review policy terms, coverage limits, and exclusions. Work with an experienced insurance advisor who understands the specific needs of yoga retreats in Bali to ensure that you have comprehensive coverage tailored to your unique situation. Additionally, be aware of any local regulations that may influence the types of insurance you need.

7. Comply with local laws

The local laws in Bali mean the community and the local people.

Familiarize yourself with and adhere to local regulations regarding noise, environmental impact, waste disposal, and other factors that may affect your retreat.

You must draft clear and legally binding contracts for participants, instructors, and any vendors or service providers you work with during the retreat.

Have to respect and adhere to local customs and cultural norms. Ensure your retreat activities are culturally sensitive and do not violate local traditions.

Working with a local legal consultant or business advisor who understands the regulatory landscape in Bali can significantly assist you in navigating these requirements. Additionally, building good relationships with local communities and authorities can contribute to the success of your yoga retreat.

Conclusion

Legally, holding a yoga retreat in Bali requires careful consideration and adherence to local laws and regulations. You must navigate legal complexities to ensure a seamless and compliant event.

Meticulous planning is essential for obtaining business licenses and land use permits, addressing visa requirements for foreign instructors, and securing appropriate insurance coverage. Understanding and respecting local customs and environmental considerations and building positive relationships with the community further contribute to the success of a yoga retreat in Bali.

Engaging local legal professionals and event planners with knowledge of Bali’s regulatory landscape is highly recommended.

Collaboration with local authorities, cultural sensitivity, and a commitment to sustainability is integral to pursuing a harmonious and legally sound yoga retreat.

By addressing these aspects conscientiously, you can create an enriching and fulfilling experience for participants while maintaining the integrity of their event within the legal framework of this captivating Indonesian island.

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