Second jurisdiction

Brunei Darussalam

Brunei offers an 18.5% corporate tax rate with pioneer incentives of five to twenty years, no personal income tax and no VAT — and we have had our own office there since 2000.

Brunei is a business-friendly centre in the region for companies looking to embark on business growth, with one of the most liberal tax regimes available and tax incentives ranging from five to twenty years for pioneer industries.

Brunei is strategically located in the heart of South-east Asia, flanked by premier financial services centres such as Hong Kong, Singapore and Kuala Lumpur. As a former British protectorate its judiciary is based on English common law, making it familiar turf for global players. The sultanate has long been one of the wealthiest nations owing to its hydrocarbon resources, and its people enjoy a standard of living among the highest in the world by per capita GDP.

In recent years greater emphasis has been placed on economic diversification, with the government focused on attracting foreign direct investment. Incentives in the form of tax exemption of between five and twenty years are available to investors in pioneer industries, alongside exemption from import duties on machinery and equipment and adjustments to capital allowances and losses.

Our Brunei office is where HMR began. Khairul Khairuddin co-founded it in 2000, and it has been operating continuously since — so this is a jurisdiction we file in ourselves, not one we outsource.

A quick look at Brunei Darussalam

Capital and business centre: Bandar Seri Begawan
Geography: On the north-western coast of Borneo, total area 5,765 sq km, bordering the Malaysian state of Sarawak and the South China Sea
Population: Around 415,000
Time zone: GMT +8 hours
Government: Constitutional sultanate, with Malay Islamic Monarchy as its guiding principle
Legal system: Based on English common law, with a parallel Shariah law
Language: Malay is official; English is widely spoken and is the language of business
Currency: Brunei Dollar (B$), at par with the Singapore dollar
Exchange control: None
Economic activities: Dominated by oil and gas; SMEs are flourishing, and the ICT and tourism sectors are developing
Accessibility: Most South-east Asian regional cities, plus Beijing, Tokyo, Hong Kong, Seoul, Melbourne, Dubai and London
Banking: Good, with a presence of both regional and local banks
Tax treaties: ADTAs with the UK, Indonesia, China, Singapore, Vietnam, Bahrain, Oman, Japan, Pakistan, Malaysia, Laos, Hong Kong SAR, Kuwait, Qatar, the UAE, South Korea, Luxembourg and Cambodia
TIEAs: With Australia, Canada, India and the Nordic countries
AEOI: Yes
Other service providers: A small but mature market, with long-established legal and accounting firms

Brunei structures

Brunei private limited company (Sdn Bhd) registration

A Brunei private limited company (Sdn Bhd) requires at least two shareholders and two directors — one ordinarily resident in Brunei — B$25,000 authorised capital, and takes a minimum of two weeks to incorporate.

Registering a foreign branch in Brunei

An overseas company can register a branch in Brunei, but it requires two local authorised individuals, a local registered office, and a minimum of six months to process.

Brunei Darussalam

We have filed in Brunei since 2000.

Talk to our Bandar Seri Begawan office about incorporating there — or about whether Labuan suits you better.

Talk to our Konsultan Check your ESR position