The Nation of Brunei, as it is officially named, is located on the north coast of the Island of Borneo in Southeast Asia. Brunei is an oil-rich country with a stable economy. The country is rated as a high-income nation by the World Bank and other international institutes.
Brunei is an absolute Kingdom ruled by the Sultan of Brunei. The official language of the country is Malay and the total population of the country is less than half a million. The Kingdom provides all the benefits of a welfare state including healthcare, education, housing, etc. free of cost to its citizens.
The Sultan of Brunei is often listed among the top 20 richest individuals in the world; palaces, gold-plated luxury cars, rare diamond and jewel collections, etc. owned by the King, are on display at many national events.
Type of business structures in Brunei
Brunei is a developed nation with a well-structured corporate and industrial infrastructure. The capital of Brunei, Bandar Seri Begawan is the country’s business, cultural, and political center. Several local and local companies are headquartered in the capital carrying out business under various business formats.
| S# | Type of business structure | Local name | Min. paid-up capital required |
| 1. | Sole Proprietorship | Perniagaan Tunggal | No paid-up capital required |
| 2. | Partnership | Syarikat Perkongsian | No paid-up capital required |
| 3. | Limited Liability Company | Syarikat Sendirian Berhad (SSB) | $800 |
| 4. | Public Limited Company | Syarikat Berhad (SB) | $37,000 |
Sole Proprietorship
The most common and simplest business format is a sole proprietorship. The owner is the one who manages the business and assumes all debts and liabilities in a personal capacity.
Partnership
A partnership can be general or limited. In a limited partnership, a group of partners is liable only to the extent of their share in the business. In a general partnership, all partners are equally responsible for liabilities in a personal capacity. Essentially, in both cases, a partnership requires two or more persons.
Limited Liability Company
An LLC is a formal business structure that requires paid-up capital as well as adherence to several regulations and laws. The owners may also require to obtain permits and licenses in some cases. The liability of the members is assumed by the company in an LLC.
Public Limited Company
A PLC is often selected by large enterprises or capital-intensive businesses. A PLC can raise capital through the public by selling its shares in the stock market. A PLC has an elaborate organizational structure including a chairman, board of directors, legal representative, etc.
Cost of registering a company in Brunei
The cost of registering a company in Brunei can vary depending on the industry, the nature of the business, the size of the company, and other similar factors.
Here are a few costs involved in the registration process.
Sole proprietorship
The registration fee for a sole proprietorship in Brunei is approximately $22.
Partnership
The registration fee for a partnership in Brunei is around $44.
Limited Liability Company (LLC)
The registration fee for an LLC in Brunei is $74. There may be additional fees for name search and reservation, articles of association, and other documents.
Public Limited Company (PLC)
The registration fee for a PLC is approximately $740. Additional fees may be charged for name searches and reservations, articles of association, and other documents.
Cost of doing business in Brunei
The costs incurred by businesses in lieu of operations depend on the location, size, and the nature of business. Some industries may require specialized equipment, highly trained labor, and a large area to set up. While others may require unskilled labor and smaller area for set up. Both businesses will incur different costs.
Here are some costs companies should plan ahead for:
Labor costs
The cost of labor in Brunei is relatively high compared to some of its neighboring countries. The minimum wage for local workers is &295 per month. Foreign workers are subject to different wage rates depending on their qualifications and experience.
Taxes and fees
Brunei has a relatively low tax rate, with a flat corporate income tax rate of 18.5%. There are also other fees and charges associated with doing business in Brunei, such as licensing fees, work permit fees, and social security contributions.
Rent and utilities
The cost of renting office or retail space in Brunei can vary depending on the location and size of the space. Utilities such as electricity, water, and internet may also add to the overall cost of doing business in Brunei.
Transportation and logistics
Brunei is a relatively small country with good transportation infrastructure, but transportation costs can still be a significant factor for businesses that need to import or export goods.
Professional services
Businesses may also incur costs for professional services such as legal advice, accounting, and consulting.
Advantages of registering a company in Brunei
There are several benefits to registering a company in Brunei, including:
Strategic location
Brunei is located in the heart of Southeast Asia, making it an ideal location for businesses looking to expand their operations in the region.
Stable economy
Brunei has a stable economy and a high standard of living, with a strong focus on education and technology. The country has a low unemployment rate and a relatively high per capita income.
Business-friendly environment
Brunei has a business-friendly environment, with a simple and efficient registration process and low tax rates. The country also offers incentives for businesses in certain sectors such as information and communications technology, renewable energy, and tourism.
Skilled workforce
Brunei has a well-educated and skilled workforce, with a high literacy rate and a strong focus on education and training. The country has a large pool of young, tech-savvy workers who are well-versed in English, which is the official language of business in Brunei.
Political stability
Brunei has a stable political environment, with a constitutional monarchy and a strong government that supports business development and economic growth.
Strong infrastructure
Brunei has a modern and well-developed infrastructure, with a reliable telecommunications network, good transportation links, and modern facilities for business operations.
