Company registration is the process of formalizing the status of a legal entity in accordance with the laws of a certain country. During this process, the company is officially recognized as a legal entity with its own legal capacity.
To receive this status, it is necessary to provide certain documentation and fulfill the requirements established by the state authorities. Due to registration, the entity is able to conduct commercial activities, conclude contracts, participate in court proceedings and perform other legally significant actions.
If you plan to start a business in Asia, Brunei Darussalam is an excellent choice for registering your company. The Manimama team has conducted in-depth research, analyzed the main subtleties of incorporating in Brunei Darussalam, and is ready to share its results and help you choose the right jurisdiction.
What are the main advantages of incorporating a company (business) in Brunei Darussalam?
- Promising Location
Located in Southeast Asia, Brunei Darussalam provides entrepreneurs access to the region’s rapidly growing markets. This offers advantageous logistical opportunities and facilitates entry into international markets.
2. Stable Political Environment
Brunei Darussalam is known for its stable political system, which ensures a predictable and secure environment for business operations. This stability supports long-term planning and investment while minimizing risks associated with political changes.
3. Competitive Tax Regime
The country offers attractive tax conditions for companies. The standard corporate tax rate is 18.5%, and newly registered companies may qualify for a tax exemption on the first 100,000 BND of taxable income for the first three years. Additionally, the absence of personal income and value-added tax further reduces the overall tax burden.
4. Streamlined Company Registration Process
The process of registering a business in Brunei is relatively simple and efficient. With a well-structured regulatory framework, entrepreneurs can quickly and smoothly register their companies, reducing administrative barriers to starting a business.
5. Transparent and Efficient Regulatory Environment
The Brunei government is committed to ensuring transparency and efficiency in the business environment. This includes clear rules and regulations that foster investor confidence and contribute to the stability of business operations.
6. Access to a Growing Economy
Brunei Darussalam demonstrates stable economic growth, opening new opportunities for businesses. Investors can leverage this growth to expand their operations and increase profitability.
Overall, registering a business in Brunei Darussalam offers entrepreneurs favorable conditions for growth and international expansion.
How to register a company in Brunei Darussalam and what are the main requirements for such registration?
Step 1. Initial setup
- Initiating a preliminary project assessment, assessing risks, choosing the type of company, preparing the necessary documents and obtaining the necessary permits, determining the time frame, budget, and resources required to complete the process.
- Preparation and filing of the package of documents.
Step 2. Company registration
- Choosing and reserving a company name with the Brunei Registry of Companies and Business Names;
- Preparation of the required documents;
- Company registration with the Brunei Registry of Companies and Business Names;
- Opening a bank account for the company;
- Registration for tax and social security purposes (automatically after company registration).
Requirements for registering a company in Brunei Darussalam on the example 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.
What do you have to know about taxes when registering a company in Brunei Darussalam?
Corporate income tax (CIT):
- 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.
Personal income tax (PIT):
- There is no PIT in Brunei Darussalam.
Value-added tax (VAT):
- There is no VATin Brunei Darussalam.
For readers
Manimama provides assistance in choosing the right jurisdiction for company incorporation and in registering a business specifically in Brunei Darussalam. We have a good understanding of the tax and legal peculiarities of specific jurisdictions, which helps our clients make an informed choice based on their unique needs and development strategies. In our work, we take into account factors affecting the business environment, such as the level of competition, access to financial and human resources, as well as opportunities for further growth and development in different jurisdictions.
By choosing our company formation service in Brunei Darussalam, you are working with a law firm that values integrity, competence, and client satisfaction. Let us help you set up a company in Brunei Darussalam and pave the way for your business success!
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The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.
