Brunei Free Trade Zones: Introduction
Brunei Free Trade Zones (FTZs) are easy to start business in with Tetra Consultants’ assistance.
In Brunei, the government has established special areas with the motive to attract foreign direct investment (FDI) into the country and, thus, stimulating the economy. In this FTZ, the government offers various fiscal and non-fiscal incentives to foreign investors and company owners who set up here.
Primarily governed by the Brunei Economic Development Board (BEDB) and Brunei Industrial Development Authority (BINA), companies in the FTZs must comply with the Article 83 (3) in the national Constitution passed in 2014.
These areas were primarily established not only to attract FDI to the country but also to develop certain industries including the following industries:
- Oil & Gas
- Information Technology
Brunei Free Trade Zones available
- The government has established various Industrial Parks that provide companies with some benefits similar to that provided in the FTZs. There are currently over 25 Industrial Parks available in the jurisdiction.
Terunjing Industrial Site
- The Terunjing Industrial Site was the First FTZ to be established in Brunei established by the Ministry of Finance and Economy (MOFE).
- Spread across 95 hectares, this Zone is operated and maintained by the Darussalam Enterprise (DARe).
- The Terunjing Industrial Site has a well-developed infrastructure including storage facilities, factories, utilities, and security.
- It is also well-connected to the world through its access to the Maura Port and the Brunei International Airport.
- Businesses established in this region, are completely exempted from corporate income tax for a certain time period and from import duties perpetually.
- Businesses are subjected to excise duties on local consumptions and products.
Some popular Industrial Parks found in Brunei
- The government has established various Industrial Parks that provide businesses with some benefits similar to that provided in the FTZs. These benefits includes well-developed infrastructure, facilities, security, and more; however, it is not include some of the similar fiscal benefits. There are currently over 26 Industrial Parks available.
Sungai Liang Industrial Park (SPARK)
- Established by the BEDB, the Sungai Liang Industrial Park was created to develop the oil and gas industry and the petrochemical industry in Brunei Darussalam.
- Spread across over 270 hectares, SPARK has well-developed infrastructure and top facilities available for businesses to use. Besides, businesses have access to drainage system and utilities.
Pulau Muara Besar (PMB)
- Spread across over 1000 hectares, Pulau Muara Besar (PMB) is located near the port of Muara and governed by the Darussalam Enterprise.
- Businesses set up in this region are provided with various benefits including subsidised storage facilities, factories, deep seaports, various fiscal incentives such as exemption from tax on exports, and more.
- Depending on the industry of your company, it may be exempted from paying tax for a certain period of time.
- Due to its popularity and ideal location, this region will be developed to integrate an economic zone, community zone, and life-style zone. Businesses will further be incentivised to set up in this region.
Digital Junction Industrial Park
- A comparatively small park spread across 15 hectares, the Digital Junction Industrial Park is governed by the Darussalam Enterprise.
- This Zone targets those Businesses in the data-heavy, ICT, and high-tech industries. It is also a Disaster Recovery Centre owing to its low levels of extreme weather and natural disaster.
- It offers businesses with prepared sites that have access to various utilities.
Why should you set up your company in Brunei Free Trade Zones?
- Surrounded by Malaysia and the South China Sea, Brunei is strategically located in Southeast Asia.
- The government has developed strong diplomatic relations with various nations including China, Malaysia and India, and organisations including the Association of Southeast Asian Nations (ASEAN), World Trade Organisation (WTO), and the Liberalisation of International Air Transportation (MALIAT).
- Besides this, it has signed over 8 trade agreements with over 24 countries and over 15 double taxation avoidance treaties which businesses can take advantage of. For instance, it has a competitive new Trans-Pacific Partnership agreement with nations such as Australia and New Zealand.
- The government has passed various attractive policies allowing for an open economy with access to foreign export market and foreign direct investment.
- Businesses are completely exempted from corporate income tax for up to 15 years. They are not subjected to capital gains tax, goods and services tax (GST), and personal income tax.
- Besides, the government has initiated various projects including the Digital Government Strategy to develop the domestic digital economy.
- Brunei has a rank of 16th out of 189 countries in terms of Ease of Starting a business as per the Report by the World Bank.
How we can help you set up company in Brunei FTZs
- There are various FTZs and Industrial Parks available for you to choose from. Tetra Consultants will first understand your business activity, requirements, and long-term goals to advise you on a suitable region you should incorporate in. We will then proceed to set up your company in Brunei with the Registry of Companies and Business Names and any other relevant authorities.
- Our comprehensive service package includes planning and strategising with our clients to select a suitable trade zone and business entity, registering the company with the relevant authorities so that you can skip to main content of the incorporation process and focus your time and energy on conducting your business. We also offers services for opening a corporate bank account by leveraging our banking network, and ensuring your business’ compliance with government regulation and policy.
- Contact us now to find out more about the Brunei Free Trade Zones and how you can register company in Brunei FTZs. Our hardworking and experienced team of experts will revert within the next 24 hours.
Are there free trade zones in Brunei?
- Yes, there is currently one. It is the Terunjing Industrial Site. The government is in the process of creating more FTZs to further attract foreign direct investments.
- There are other industrial parks available for businesses as well. However, they may not have all the benefits that FTZs have.
Can foreigners own a business in Brunei?
- Yes, foreigners can set up their business there and are allowed to have complete ownership of their business.
- If the foreign individual wishes to travel to Brunei for work, they must apply for a Work Visa.
Why should I incorporate my business in Brunei?
- You should incorporate your business in Brunei for the following reasons:
- The government of Brunei offers various fiscal and non- fiscal incentives to businesses in order to attract foreign direct investment and stimulate the economy.
- The nation is strategically located in Southeast Asia which may be advantageous for the businesses.
- It is relatively easy to start a business in Brunei than in other countries which can be seen by its rank of 16th out of 189 countries in terms of Ease of Starting a business according to the World Bank.
Who is in charge of the Free Trade Zones in Brunei?
- Most of the FTZs are established and governed by the Brunei Economic Development Board (BEDB) and Brunei Industrial Development Authority (BINA). However, it is maintained by the Darussalam Enterprise (DARe).
What all activities can my business perform in the Free Trade Zones?
- Some of the activities that your business can perform includes the following industries:
- Oil & Gas
- Information Technology
What countries have free zones?
- They are established in strategically located regions which are around major seaports, airports, and more and allow for flexible and efficient trade.
- Some of the countries that have FTZs include the United States, Singapore, Hong Kong, Philippines, and more.