Pros and Cons of register a company in Brunei

Benefit

- Increases the chances of growth for an offshore company in Brunei is the presence of
peaceful environment in the country. The Sultanate enjoys political and economic
stability due to stable government of ruling family. Citizens of Brunei are happy with
peace and prosperity they are enjoying in the country and there is no danger for an
internal conflict. Brunei also maintains cordial relations with its neighbors that eradicate
the dangers of any conflict with other countries.

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- Foreigners can own all of the shares in an LLC. In other word, the government of Brunei

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is committed to provide best facilities to foreign investors. 100% foreign ownership is

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permitted for IBCs (International Business Companies) in Brunei.

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- Must be two shareholders. Thus, a minimum of two shareholders are required to
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incorporate an LLC. Only a single shareholder and a single director are required to open
an IBC in Brunei. There is no restriction on them to reside in Brunei.
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- No taxes are applied on offshore companies. Brunei has no capital gains tax, or sales
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taxes, no Value Added Tax (VAT), no export taxes, payroll taxes, or personal income
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tax.
- Registration process for an offshore company is simple and extremely fast. It usually
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takes only one day to establish Brunei IBC.

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- Instead of using Brunei language, English is widely spoken language that is used in legal
documentations.
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- There is no minimum authorized share capital to establish a company in Brunei.

- Limited liability. Shareholders’ liabilities are limited to their contributions to the share
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capital.
- Companies in Brunei can open account in any part of the world.
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- Due to very strong Singapore-Brunei relations, the Brunei Dollar is directly pegged to the
Singapore Dollar. Singapore currency is accepted in Brunei for day to day trading and
vice versa.

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 Limitation

- Brunei limited liability company is subject to corporate tax rate of 22% on profits.
Annual tax returns must be filed with the Collector of Income Tax of the Ministry of
Finance.
- Company cannot be listed directly. Brunei limited liability in the United States, Hong
Kong and mainland China cannot be directly apply for listing.
- Low profile. Brunei is relatively late in the implementation of offshore companies in
Cayman, BVI, Hong Kong and the UK. Hence, low visibility.
- Registration and maintenance costs are high. Thus, compared with Hong Kong, Britain

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and other places, Brunei company registration fees will be relatively high.

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- No longer operate locally in Brunei. Because it is an offshore company, it is not

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encouraged to operate locally in Brunei.

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- Like in Malaysia, Brunei companies must have at least two directors and two
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shareholders. If the company has two directors, at least one of them must be ordinarily
resident in Brunei. Directors need to apply for Ordinary Resident status with the Ministry
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of Finance.
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- Brunei limited liability company is subject to corporate tax rate of 22% on profits.
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