Introduction to Brunei Company Formation
If you are thinking of Brunei company formation, then you are reading the right post. You will gain the right knowledge about the requirements and what you must have to make the registration successful.
Brunei is in the South China Sea close to Borneo and Islam is their original religion. “The Islamic Sultanate of Brunei Darussalam” is the official and main name of Brunei.
Brunei was under the British Empire until 1984 when it gained independence, but they are still a British Commonwealth member.
It is a small country with a wealthy economy because of natural gas and production of crude oil that accounts for 90% of its GDP. The liquified natural gas production of Brunei is 9th in the world.
The Limited Liability Company (LLC)
The LLC’s are not allowed to have the same or a similar name with another legal entity in Brunei.
Since the LLC’s are limited and private companies, the company names must not end with words in primary official language Malay. They use the “Sendirian Berhad” or “SDN BHD” abbreviation instead.
The primary step in incorporating is to research which company names are available.
After that, file these documents with the Register of Companies:
- Articles of Association
- Names of directors and signed consents who will act as directors
- Statutory Declaration of Compliance
- Registered Office Address
- Copy of the passport or identity cards of shareholders
Decide if You Want Public or Private
The next step is to consider the kind of company you want to incorporate. Further, there are two main company types in Brunei. These are LLC and the public company.
They differ mainly in the size of a shareholder because there are at least two shareholders in private companies with a maximum of 50. The public company has at least seven shareholders, and they have a maximum of 50 shareholders.
The private companies are held privately, while public companies sell or have sold themselves to the public. Public companies can raise money for their expansion projects by selling their stocks or bonds.
- Minimum capital – There is no required minimum capital for an authorized share capital
- Taxes – An LLC must pay a 2% tax rate from profits. The annual returns of taxes must be under the Collector of Income Tax of the Ministry of Finance.
Brunei does not have capital gains tax, sales tax, Value Added Tax (VAT), payroll tax, export tax, or personal income tax.
- Each LLC must appoint a local auditor that has been registered, who can prepare the yearly profits and losses account. They must put it in a balance sheet report submitted to the Ministry of Finance. The yearly returns must have information regarding directors and shareholders.
Aside from that, the LLC must maintain the meeting books of managers, directors, and shareholders. Also, the following must be done:
- Shareholders must have annual meetings.
- For public records, the shareholders’ names and directors must be in the Registrar of Companies and the public must then be able to access them.
- Incorporating an LLC is a maximum of five business.
- It is allowed to purchase Shelf companies in Brunei to make incorporation faster.
If you decide for a Brunei company formation, 3E Accounting will be here for you. Our trained personnel will assist you every step of the way because we want you to succeed in this. You do not have to go through a hard time with the business registration process in Brunei.