The Nation of Brunei is a nation in Southeast Asia on Borneo’s northern shore. It is surrounded by the South China Sea and Malaysian territories. The population of Brunei is about 400,000, and Bandar Seri Begawan serves as the country’s capital. Brunei’s government is an absolute unitary Islamic monarchy. In Brunei, business creation and registration are governed under the Companies Act of 1984. The Registry of Companies and Business Names (ROCBN), a division of the Ministry of Finance, is in charge of business creation and registration.
- Business structures in Brunei
When you begin your IT firm in this country, you may choose any of the following business structures:
- Single-person company
The single-person business is the simplest kind of corporation and is exempt from corporate tax. A certificate of incorporation given to the owner in the name of the business verifies the registration of a single proprietorship in Brunei.
- Partnership
There cannot be more than 20 partners in a partnership, which is a kind of company. Corporate tax is also not supplied about the specific kind of company that is allowed in Brunei. Permits or licenses are needed from the Department of Immigration, the Ministry of Labor, and Economic Planning and Development for non-residents of the jurisdiction to form a partnership.
- Private company
The option to choose between restricted and unlimited responsibility on shares is guaranteed for a private firm. The shareholders of the corporation do not have to be residents (natural-born citizens) of the Sultanate and might range from 2 to 50. Shares may not be sold or transferred to the general public. The parent company’s shares may be held by the subsidiary. There is no minimum permitted capital requirement for private companies. 30% of the company’s earnings are taxed.
- Public company
A public business may also have limited and unlimited liability, similar to the aforementioned model. It is permitted to offer its shares for public sale. The corporation must have a minimum of 7 shareholders, regardless of where they live. A subsidiary may own the parent company’s shares. At least half of the company’s directors must be residents or nationals of the respective countries. It is not necessary to have a minimum share capital. The company’s auditors (whose appointment is necessary) must live in the country and submit yearly reports to the relevant authorities.
- Branch company
It is feasible to register a foreign company’s branch. At least one branch director has to be a citizen of Brunei and be qualified to represent the branch’s interests there.
- The procedure for forming a company
The appropriate information to establish a company in a nation will always be sought out by a sensible business owner or entrepreneur. Obtaining accurate information entails simplifying the application process. You would need to follow these steps to register your IT company in Brunei:
- Search for and approve the company name
Every business needs a name that is legally recognized. Anyone wishing to register one in this nation must have suggested names that are appropriate for the kind of trade. The trade name is then approved by the Registrar of Companies. A non-profit (limited) company incorporation application must finish with the term “Berhad” (abbreviated as “Bhd”). The words “Sendirian” or “Sdn” must appear before “Berhad” or “Bhd” when it is a private corporation.
- Submit statutory documentation
The applicant must compile and submit to the Registrar the required legal documentation to establish a business there. The candidate must present the following papers, among others:
- Articles of incorporation.
- Memorandum.
- Directors’ names and approved consents are included.
- Statement of conformity with the law.
- The registered office’s address.
- Duplicates of shareholders’ passports and ID cards.
- Enrollment fee
Before registering online, the applicant pays the registration costs. On the ROCBN website, applications are submitted online.
- Certificate of incorporation issued
Within one working day, the Registrar issues the certificate of incorporation by email after reviewing the statutory paperwork.
- Registering for social security and tax benefits
The next action is to register with the tax registration. Additionally, the social security department requires that the IT company’s workers register with them.
- Opening a bank account for a recently formed company
Additionally, a corporate account in Brunei must be created for the business.
