Company formation in Brunei Darussalam

Before deciding to set up a new company in Brunei Darussalam, read the information below to understand the characteristics of a Private Limited Company (PLC) / Sendirian Berhad (Sdn Bhd):

Shareholders: at least 2 shareholders (maximum of 50).

Director: minimum of 2 directors and 1 of them must be ordinarily resident in Brunei Darussalam, but If there are more than 2 directors, 2 of them must be residents.

Minimum share capital: minimum of BND 1 (~ €0,6) authorized share capital.

Liability: shareholders’ liabilities are limited to their contributions to the share capital.

Accounting: annual reports must be filed.

The standard CIT rate is 18.5%.

Companies engaged in oil and gas industries are taxed at a flat rate of 55%

Exemption will be granted to a newly incorporated company in Brunei Darussalam for the first $100,000 of the chargeable income during the first 3 consecutive Years of Assessment.

For existing companies: as a measure to reduce the tax liabilities of small and medium companies, the tax threshold shall be computed as follows:

• for the first $50,000 of chargeable income, tax shall be charged at 25% of the applicable tax rate;
• for the next $50,000 of chargeable income (i.e. $50,001 to $100,000), tax shall be charged at only 50% of the applicable tax rate;
• the remaining balance of the chargeable income (total chargeable income - $100,000), shall be taxed at the applicable tax rate.

Companies having gross sales or turnover of BND 1 million (€680,000) or less are exempted from CIT or charged with a 0% CIT.

There is no PIT in Brunei Darussalam.

There is no VATin Brunei Darussalam.

Double taxation avoidance agreements in Brunei Darussalam: United Kingdom, ​Indonesia, Singapore, Vietnam, Oman, ​​Bahrain, ​Japan, ​​Pakistan, ​Malaysia, ​Laos, ​​Hong Kong, ​Kuwait, ​United Arab Emirates, ​Qatar, ​South Korea, ​Luxembourg, ​​Cambodia.