Brunei offshore company
Since 2003, Healy Consultants has assisted our Clients incorporate the optimal corporate structure for their company. Our Clients are often interested in setting up an offshore company in Brunei as such business entity is tax-exempt in Brunei and boasts simple registration procedures.
What is an offshore company?
- An offshore company is a Brunei company i) registered with the Brunei International Business Center ii) with a registered address and a company secretary in the Sultanate but iii) considered as a non-resident business in Brunei. It is not allowed to pursue commercial and productive activities with Brunei’s territory;
- Also known as “Brunei international business companies(IBC)”, offshore companies are therefore mainly used by businessmen to:
- Hold equity and other securities and assets owned outside of Brunei;
- Sign contracts corresponding to operations executed outside of Brunei and receive related revenue;
- Minimize taxation and protect the privacy of our Client’s net wealth and revenue.
- An IBC company in Brunei can be incorporated with only i) US$1 of share capital ii) one shareholder and iii) one director, both can be of any nationality and do not need to be Brunei residents. The authorities will still require i) a registered address in Brunei and ii) a company secretary, both can be provided by Healy Consultants to our Clients if needed;
- Furthermore, there are no foreign exchange controls in Brunei. Offshore companies are free to remit funds to overseas companies and individuals;
- However, Brunei offshore companies often negatively perceived by the Government, investors, and international banks as tax haven companies. Clients may find it difficult to open corporate bank accounts with international banks.
Table of comparison between a Brunei offshore company and a Brunei onshore company
The 10 steps to Brunei offshore company incorporation
- Consultation phase: Prior to incorporation of a non-resident Brunei company, we discuss Client’s requirements and intentions for the new company. We then plan the optimal corporate structure for the intended business;
- Client due diligence and commitment: our Client i) settles Healy Consultants’ fees ii) signs and returns our Client engagement letter and iii) provide us all the required due diligence documents;
- Planning phase: Healy Consultants drafts a detailed engagement project plan for our Client, including i) corporate bank account opening steps and ii) offshore incorporation process. This project plan maps out by week each step to engagement completion, optimizing transparency and setting Client expectations;
- Name reservation and notification: Client list three unique company names in order of preference, Thereafter, Healy Consultants i) checks company name availability with the Brunei Registrar of Companies on your Firm’s behalf and ii) notify the Brunei International Business Center of Client’s intention to incorporate an offshore company in Brunei;
- Document preparation: After the corporate structure is agreed with our Client, Healy Consultants will prepare incorporation forms for Client signature and courier return;
- Application: Thereafter, Healy Consultants i) registers our Client’s company with the Brunei International Business Center Registrar and ii) pay the registration fee on our Client’s behalf;
- Incorporation approval: When registration is approved, Healy Consultants emails to our Client i) the business profile of the company, ii) its certificate of incorporation and iii) obtain a seal for the company;
- Additional requirement: As a Brunei address is required to register a Brunei offshore company, Healy Consultants provides our Client a Brunei registered address for registration purposes only.
- Bank account opening: After offshore company is set up, Healy Consultants assists our Client with opening of corporate bank account. Majority of our Clients choose either a Singapore or a Malaysia corporate bank account i) for tax and transfer efficiency reasons ii) because both jurisdictions are major financial centers and iii) banks in Singapore and Malaysia offer multi-currency accounts and world-class Internet banking facilities;
- Engagement completion: Following engagement completion, Healy Consultants couriers a full company kit to our Client, including i) original Brunei corporate documents, ii) unopened bank correspondence, and iii) a Client feedback survey to assess the assistance provided by our Firm in Brunei for offshore business incorporation.
Brunei offshore company formation fees and timelines
Offshore business setup in Brunei amounts to US$8,800 in year 1 and annual company costs in year 2 and thereafter amount to US$4,950. These average engagement fees include i) Brunei offshore business formation ii) corporate bank account iii) provision of a registered address and iv) estimate of government-induced fees.
The average offshore company registration period is 10 weeks as outlined below:
|1||Engagement planning||1 week|
|2||Company incorporation period||2 weeks|
|3||Bank account approval||4 weeks|
|4||Internet banking approval||1 week|
|5||Engagement completion||2 weeks|
|Total engagement period||10 weeks|