Since 2003, Healy Consultants Group has assisted our Clients with business registration in Brunei. Our services include i) Brunei company incorporation ii) government license registration iii) business bank account opening iv) employee recruitment v) visa strategies and vi) office rental solutions.

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Brunei business setup summary

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• Advantages of Brunei company registration

  

  1. Brunei has signed 18 agreements for the avoidance of double taxation. This implies a lessening of the tax burden from all the companies operating in Brunei that directly deal with these 18 countries.
  2. The country has a stable economy and currency, with the Brunei Dollar directly pegged to the Singapore Dollar;
  3. It offers several incentives for foreign investments, such as:
     • Companies which are given a pioneer certificate will enjoy i) exemption of 30% of corporate tax for a period of up to 11 years, depending on the capital expenditure; ii) exemption of import taxes on certain products and raw materials, among other incentives;
     • Companies which produce products or services for export are also eligible for exemption of income tax for up to 11 years;
     • Tax exemption may also be granted for companies which acquire foreign loans for the purchase of production equipment.
  4. Brunei has an online portal for registration of companies making the incorporation process quick and easy. The first step is to obtain usual login credentials and the proposed company/ branch name should be validated. Thereafter, all statutory documents need to be submitted online. After payment, the application is reviewed and the applicant is notified by email. Moreover, templates of all statutory documents are easily available.

• Disadvantages of Brunei company registration

  1. By the 24^th December 2017, all Brunei IBCs as well as Brunei Offshore Companies were fully closed, as declared by the Brunei Registry. The Brunei government took this step in order to promote and protect the local businesses in Brunei. As a result, all the foreign investors had to shut down or sell their businesses, thereby reducing the foreign investor’s confidence and reliance over this jurisdiction.
  2. Brunei is still perceived as a tax neutral jurisdiction in some circles because:
     • While the Sultanate is not anymore on the black list of tax neutral jurisdiction prepared by the OECD, Brunei-based companies continue to attract additional scrutiny from Western tax authorities and banks, but less than traditional tax neutral countries;
     • While many countries including i) France and ii) Canada have recently removed Brunei from their list of tax neutral jurisdictions, but others including i) Portugal and ii) Colombia have not done so yet. As a result, funds transfers from these countries to a Brunei company are still subject to higher withholding tax rates.
  3. Half of the Brunei Limited Liability Company (SDN BHD) directors must be resident Bruneian’s or Brunei permanent residents, while branches require a minimum of two resident representatives. If our Client does not have staff on the ground in Brunei, Healy Consultants Group will supply your business with passive professional passive resident nominee director services.