Why Should Your Company Incorporate in Brunei by 3E Accounting
Known to be an oil-rich country, Brunei has shown recently that it can diversify its economy into information and technology as well as halal manufacturing. Wondering why should your company incorporate in Brunei? For one, the sultanate is blessed with warm and humid weather all year round, which makes it an ideal place for various flora and fauna to grow.
Further, Brunei’s table political system makes it a very peaceful and amicable place. If you’re looking to take a break from the hustle and bustle of hectic city living, Brunei is the ideal place for you. The relaxed and tranquil lifestyle here makes Brunei a good place to incorporate your company. Here are other factors to consider.
Why Invest in Brunei?
Only second to Singapore, Brunei has been considered one of the best tax havens worldwide. It has a corporate tax rate of 18.5%, and its citizens don’t need to pay income tax at all. Brunei has signed 15 agreements for the avoidance of double taxation. This reduces the tax burden of all the companies operating in Brunei that directly deals with these 15 countries. Brunei strongly encourages Foreign Direct Investments (FDI) as it plays a key role in the nation’s economic and technological advancement. This is in line with the government’s intention for economic diversification efforts.
There are various incentives that the Bruneian government offers. According to a report by the World Bank in 2016, Brunei’s ranking for ease of doing business jumped 21 spots from 189 to 84. The government has also amended certain laws to simplify and expedite the company incorporation process.
How to Incorporate a Company in Brunei
Aiming to be a pro-business environment for all, the government of Brunei will provide its best to companies, as long as they adhere to the country’s regulations. There are different types of corporations that can be registered in Brunei:
1. Free Zone Limited Liability Company
- This requires at least one director and two shareholders.
- This is best used for manufacturing or logistics businesses with a minimum level of paid-up share capital of US$1.
2. Resident Limited Liability Company
- The best use of this company is for local trading.
- This will require 2 directors and 2 shareholders.
- A minimum of US$1 is also necessary.
3. Brunei Public Limited Company (PLC)
- A minimum of seven shareholders is required to set up a public limited company (PLC).
- A PLC must appoint a minimum of 2 directors.
- Authorized share capital of US$1 is required.
- Foreign companies looking to establish permanent entities in Brunei can establish branches.
- The branch office must appoint one individual of any nationality to be the representative in Brunei.
5. Representative Offices (RO)
- Not allowed to conduct any commercial activities.
- A RO must appoint one resident representative of any nationality.
- A RO may only conduct market research and promotional activities of the parent company’s products and services.
The time frame for incorporation is approximately 12 weeks. A period of 3 to 4 weeks is necessary to open a company bank account. Having a resident director is also a must for all the corporations mentioned above.
Should Your Company Incorporate in Brunei? Definitely!
Brunei has many advantages which in turn creates business opportunities and a good environment for company incorporations. With the government taking the initiative to diversify the economy, the potential business growth and opportunities are lucrative to entrepreneurs and businessmen. The process to incorporate your company in Brunei is simple but it can also be quite cumbersome and complicated. We provide incorporation services to simplify your integration into the economy in Brunei, should you require any assistance. You may contact us today!