Negara Brunei Darussalam, also known as the Islamic Sultanate of Brunei Darussalam or the Nation of Brunei, the Abode of Peace, is a country in Southeast Asia located on the north coast of the island of Borneo. The South China Sea and Malaysian territories surround it. Brunei’s capital is Bandar Seri Begawan, and the country’s population exceeds 400,000.
Brunei has a unitary Islamic absolute monarchy as its government. Brunei’s business registration and creation activities are governed by the Companies Act of 1984. The Registry of Companies and Business Names (ROCBN), Ministry of Finance, is in charge of business formation and registration in Brunei.
Brunei Darussalam is home to a diverse range of commercial companies. To choose which sort of entity is best suited for your purposes, learn about the criteria, liability, and paperwork required for each. If you want to start a business in Brunei Darussalam, you’ll need to register as a sole proprietorship, a partnership, or a corporation.
Types of Companies In Brune
- Brunei International Limited Partnership (Brunei ILP)
- Brunei Limited Liability Company (SDN BHD)
- Free Zone Company
- Public Limited Company
- Sole Proprietorship
- Branch or representative office
Sole Proprietorship
The Sole Proprietorship is the most basic type of business; it is not subject to corporate tax. A certificate of incorporation issued to the owner in the name of the company confirms the registration of a sole proprietorship in Brunei.
Partnership
A partnership is a type of business in which there are no more than 20 participants. Corporate tax is not available in Brunei for the specific type of business. Permits or licenses from the Department of Immigration, the Ministry of Economic Planning and Development, and the Ministry of Labour is required for non-residents to form partnerships in the jurisdiction.
Private firm
There is the freedom to choose between restricted and unlimited liability for shares and guarantees for a private firm. The corporation can have between 2 and 50 shareholders, and they do not require to be Sultanate residents (natural-born citizens). It is illegal to sell or transfer shares to third parties in the open market. The parent company’s interests in the subsidiary are permitted. There is no minimum authorized capital requirement for a private firm. The profits of the company are taxed at 30%.
Public firm
A public business, like the previous kind, can have both restricted and unlimited liability. It is permitted to sell its stock on the open market. The corporation should have at least seven shareholders, regardless of where they live.
Subsidiary
A subsidiary may own shares in the parent corporation. A minimum of half of the company’s directors should be citizens or residents of the jurisdictions. There is no requirement for a minimum share capital. The company’s auditors (who must be appointed) must live in Brunei and make annual reports to the appropriate authorities.
Branch office
As previously stated, a foreign company’s branch might be registered. At least one of the branch directors must be a Brunei resident with the capacity to represent the branch’s interests in the country.
Benefits of Forming a Company In Brunei
- Economic stability
- Complete foreign ownership and control
- Double taxation agreement with 15 countries
- No minimum share capital requirement
- A minimum of two shareholders
Taxes
If you intend to do business in Brunei, reading this will help you understand the special tax regulations and rates that apply to an LLC (SDN BHD), which is the most prevalent legal entity in the country.
Brunei taxes corporate income earned in or derived from Brunei, as well as money obtained from sources outside the country. According to research, the standard rate for offshore income received in Brunei is 18.5 percent. However, seek professional advice. Companies with annual revenues of less than BND 1 million are exempt from CIT. 18.5 percent is the typical company tax rate. Companies that deal with exports are subject to a fixed rate CIT rate of 1% under specific circumstances. Companies in the oil and gas industry pay a flat rate of 55 percent in taxes.
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