BruneiBest business opportunities in Brunei and types of business in 2024

November 27, 2023by Tetra Consultants0
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  • Brunei, a country with a low tariff regime and offering a tax incentive and a flat corporate tax income tax of 18.5% on the net profits provides with many business opportunities. Though being a small landmark, Brunei has been a wealthy and stable economy which has been growing consistently over the past decade. 
  • Brunei as a country is well developed with social and business infrastructure, making it much more feasible for businessman and entrepreneurs to register company in Brunei. The well-developed business infrastructure of Brunei also includes some modern transportation networks, ports and airports. The government is also investing in new infrastructure projects to support economic growth, which will induce the growth of businesses and enterprises establishing in the country.  
  • Brunei is strategically located at the heart of Southeast Asia and along the East West maritime trade route, which makes it easy and convenient for businesses which needs connectivity. This connectivity also helps in growing economies within the region, making it an ideal location for export-oriented activities.  
  • Along with the strategic location, Brunei government is also supporting foreign investment and has implemented policies and incentives to attract foreign businesses. Moreover, the Brunie Economic Development Board (BEDB) provide a one-step Centre for foreign investors helping with various business requirements.  
  • There is an ample amount of business opportunities in Brunei, but the businesses and the investors need to consult before they start operating their business in Brunei.  Once we start our engagement, we make sure that our clients are in their comfort and on behalf of them we conduct various business activities for them including incorporation services.  

Business opportunities in Brunei 

  • Brunei with potential of encouraging many businesses in the country. There are many types of business in Brunei which can have a better opportunity, which are as follows: 

Manufacturing sector 

  • With the high potential to develop an industry, manufacturing sector is one of the best opportunities in Brunei. With the utilization of its rich biodiversity and natural resources, as well as its strategic location in the region, the sector tends to provide a more competitive advantage to the companies.   
  • While operating a manufacturing business, you might require legal documentation to be drafted for the continuation of the business, which can be drafted with the help of Tetra Consultants, as our experts are well versed in knowledge and bylaws.   

Technology sector 

  • Brunei has identified potential new technologies within the sector of healthcare, health Sciences, food securities, advances, manufacturing processes, material science, electronics, energy, sustainable environment and information and communication technology.  
  • With the boost in increasing demand for technology in every sector of business, it has been a great opportunity for many technological industries which are working in different sectors.  
  • Thus, with the great opportunity in the technological sector in Brunie comes with a great responsibility of operating our business legally which requires the company to be incorporated in Brunei. Tetra Consultants can be a great support for you, as we can provide you with services regarding offshore company incorporation, which will assist you with the incorporation of your company hassle-free. 

Franchise opportunities 

  • The country with the least number of taxes in the region, modern infrastructure and strategic location with well-educated population, providing a huge number of well-skilled and trained employees to the company. The political stability is among the main benefits of doing franchise business in Brunei.  
  • Brunei can be seen as a favorable investment opportunity in various sectors, as the country has been blooming its economies as a result there are various sectors which include commercial aviation, food and beverage franchises, communication technology, different equipment, medical equipment and many other sectors which do provide franchise opportunities to businesses and entrepreneurs. 

Supply chain management 

  • There is ample amount of business opportunities in Brunei as the country has a potential in supply chain management, because there are various opportunities for designing, implementation, operation of contract logistics and freight management. 
  • This business opportunity can also be operated on a smaller scale, providing freight management solutions, which is indeed a need for upcoming businesses for their growth.  

Types of business in Brunei 

  • There are various types of business in Brunei, which can be operated by anyone who is willing to have a business in Brunei. Every business has their own requirements, to be fulfilled by the individual thus different requirements for different business types are as follows:  

Sole Proprietorship 

  • It is a singularly and privately owned company, which is liable for its own business operations. Majorly sole proprietorships are not open to foreigners and are also not subject to corporate tax.  
  • The owner of such an enterprise has unlimited liability towards the company. The companies in Brunei are required to be registered with the Registry of Companies and Business Names (ROCBN) and Ministry of Finance. 
  • If you are willing to operate a sole proprietorship in Brunei, it might be not possible for you to operate as a foreigner, but Tetra Consultants can help you to establish different types of businesses which are allowed for foreigners.  

Partnership 

  • Any business entity which consists of more than one person and maximum up to 20 individuals, who can be local or branches of foreign companies, are partnership businesses. In General Partnerships, it requires at least one local partner who must be the resident of Brunei, or Brunei permanent residents.  
  • Though partnerships are subject to approval and are open for foreigners to register you might require obtaining licenses to operate a lawful business in Brunei. Tetra Consultants can help you in obtaining such license through our offshore financial license services which will help you in obtaining all those licenses your business requires for proper functioning of the business. 
  • Moreover, there is no corporate tax levied on the business type which acts as one of the big advantages.  

Private Company (Sendirian Berhad or Sdn. Bhd / Pty. Ltd) 

  • A private company is a separate legal entity from its members and directors making it an independent entity. 
  • Private companies are governed by the companies act (Cap 39) and are open for foreigners to register. The companies are also subjected to 22% of gross profit corporate tax, which might cause concern. 
  • Operating a private company in Brunei requires various things including a corporate bank account which can be open with the help of Tetra Consultants through ours corporate bank account opening services 
  • Moreover, apart from the bank account the various statutory requirement for private company are as follows: 
  • A minimum of at least 2 shareholders and maximum up to 50 shareholders. 
  • A minimum of 2 directors of which one must be a local director. 
  • A private company in Brunei must have a minimum authorized share capital of BN$ 1. 
  • If you are worried about the local director requirement, Tetra Consultants are here to help you with our nominee director and shareholder services which will help you to lawfully set your business in Brunei.  

Public Company (BERHAD or Bhd. / Plc) 

  • Similar to private companies. Public companies are also a separate legal entity. The difference is that the company can transfer their shares freely to the public Moreover, public companies are also open for the foreigners to register and are subjected to a 22% gross profit corporate tax. 
  • There are various statutory requirements for the public company with are follows: 
  • A minimum of 7 shareholders without any residency requirement. 
  • A minimum of 2 directors, with at least 1 director to be the Brunei resident.  
  • A minimum authorized share capital of BN$ 25,000 is required.  
  • After the engagement with Tetra Consultants, you can operate a public company while adhering to all the required compliances as, our experts will adhere to all the required compliances and will handover you a fully operational company as per your requirements.  

Joint Venture 

  • This is a new type of business in Brunei in which the aligning of two different companies for a single goal has been done. This venture can be taken out between foreign and local companies. The company is required to be registered with the Ministry of finance and Registry of Companies and Business Names (ROCBN), Brunei.  
  • Joint venues are subject to approvals which can be taken by Tetra Consultants on your behalf once the engagement starts as the foreigners are open to register. We can help them with various business services, such as international trademark registration, offshore financial licenses, corporate bank account opening, and many more such services.  

Branch office 

  • A foreign business can establish its business unit for grabbing amazing business opportunities in Brunei. A foreign company can establish a branch office or a subsidiary company by incorporating a local company or setting up a branch of a foreign company. Depending on the types of industrial activities, a 100 percent foreign equity is permissible in Brunei.  
  • Setting up a branch office also requires various legal documents to be drafted, which can be drafted with the help of Tetra Consultants, as are experts, who are well equipped with knowledge of law. We can draft legal documents on your behalf. 

Conclusion  

  • Though, there are many amazing business opportunities in Brunei, which can be a great business idea for many, for foreigners, it might be difficult for foreigners to register their company in Brunei. Thus, Tetra Consultants are happy to offer you various business services, including offshore company incorporation, which will help foreigners to register and set up their business in Brunei. 
  • Contact us to find out more about the business opportunities in Brunei and various types of business in Brunei, and our dedicated and experienced team will respond within the next 24 hours. 

Tetra Consultants

Tetra Consultants is the consulting firm that works as your advisor and trusted partner in your business expansion. We tell our clients what they need to know, instead of what they want to hear. Most importantly, we are known for being a one-stop solution for our valued clients. Contact us now at enquiry@tetraconsultants.com for a non-obligatory free consultation. Our team of experts will be in touch with you within the next 24 hours.

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