Globalizing Brunei To The World

Have you ever come to Brunei Darussalam? If not, have you ever heard about Brunei? If you do, what do you know or what have you heard?

A lot of assumptions have been said about Brunei. Maybe only a few knew some of it. Of course Brunei has one of the largest and the most beautiful water village in the world known as ‘Kampong Ayer’ which has been titled as Venice of The East. But besides that, it was once the administration and ruling centre and it has undergone a lot of modernization, changes and challenges in defending its existence ages ago until now....

Another reason maybe because Brunei has the largest palace in the world which has thousands of rooms including banquet room, prayer room, royal apartment and other royal facilities. Not many knew that it is also His Majesty’s office and the management centre of the Prime Minister’s Office day to day running. Besides, the banquet hall is also used for holding special occasions such as custom and traditional ceremonies and also for national festivities...

Or because it is one of the world countries having the world’s oldest reigning monarchy and centuries of royal heritage. But do you know that the monarchy system in Brunei has aged 600 years old. Or because Brunei got the most magnificent mosque in South East Asia but do you know that it was officiated and built from an idea outbreak of a Bruneian leader at that time who was the Sultan Omar Ali Saifuddien (the 28th Sultan), also known as the ‘Modern Brunei Architect’, and named after him...

Or do you only imagine a country which is wealthy and full of luxuries. But not many knew that not all the people are rich. There are also many classes of people such as the upper class, medium or lower ones as they do at any other countries. They all live peacefully and in prosperity. However, those poor ones and in need are given special attention from the government and private sectors. Only those who have already visited Brunei could picture the real situation. But more than that, those who have already came to Brunei may feel gifted amazing moment with a kind of peacefulness as claimed by many tourists coming to Brunei.

The peacefulness mentioned may be a subjective issue. Although Brunei does not have entertainment or gambling centres such as discos, pub clubs or lotteries, casinos and others which are found in other countries, it could still give something more valuable to tourists. Even Alcoholic drinks are strictly prohibited. Furthermore, smoking is also banned from being advertised and reinforced in government buildings and public areas. Maybe the prosperity is gained because of the minimum pollution to the environment thus resulting in the clean and fresh air, calm because of the less crime rates or because of less noisiness, or maybe because there are totally no car-horn sounds on the streets, less serious traffic jams, or calm because of the calmness itself.

Actually, introducing Brunei or Brunei known to the global level is not only because of bilateral relationships made, or from the tourism promotions that offers many interesting places to visit with various festival celebrations scheduled throughout the year or many local products to break through the global market, but what lies in Brunei itself is unique and comprises from all aspects of religion, history, economy, culture, social and politics and thus introducing it worldwide. Although it is a small country but its beauty still shines. What’s more important is that Brunei is now striving towards being a ‘Chant Country’ or ‘Negara Zikir’. Let us all support and pray so that Brunei will be more blessed, safe and peaceful for us all.

Behind The Rise of Oil Price and Goods

With its own stability, peacefulness and prosperity, Brunei is one of the countries which has attained and attracted focus for foreign investors and became a choice for tourists to come and visit the country. Unsettled about the issues of global warming and natural disasters which had hit some of the countries worldwide, we are now yet shocked with the crisis of oil price rocketing, causing rise indirectly to the global food price. The price issues are not only felt in Brunei Darussalam, but other regions of the world face the problem.

We are really grateful enough for not encountering the hit as badly as other countries do. Thanks to the awareness and understanding of Brunei’s Government regarding the situation. We are thankful that until now the Government is still subsidizing our daily needs of rice, sugar, LPG (home gas) and petroleum since three decades ago. Although the subsidy value paid by His Majesty’s Government rises from year to year without adding the burden to its people, we however need to remind ourselves to always spend wisely. To spend extravagantly should be avoided. Instead, to be thrifty and being smart in saving money are cultural attitudes that we should perish in managing our expenses.

It’s time for us to realize this reality, in fact we should have been a long time ago. What had happened taught us a useful lesson. What’s clear now is that we have no power to control the increase of oil and food price. However, we have the full ability to handle and balance out our way of life. For those interested in going for a tour for example… (actually, I’m one of them myself;)) usually visiting other countries with huge expenses, why not once in a while be a domestic tourist or at least you can choose a low-cost tourism package suiting your needs. The same thing goes for other cases as well.

Of course the old days and the present are different. Time changes. While struggling with the issues mentioned earlier, the global economy will continue rolling its play in what seems like an endless game. In whatever the situation is, a change in behaviour and attitude are important aspects in our lives. Let us recall and review back our past few years. How about a few years ahead? It should be an interesting thought to go through. With the cost of living rising high and the needs increases day by day, we should adapt simplicity in every matter. Enjoy life as it is. Plan your expenditure and practice minimal use of every energy resources or daily food outcome.

Be thankful to what we have and don’t forget to offer some hands to those needed. In spite of all these matters, let us all not forget to pray for our country to always be blessed with peace and prosperity and will continue to pour with livelihood as well as a better future waiting ahead.

Touring Brunei

Towards achieving higher economic diversity, Brunei is not left behind in this competitive effort especially in eco-tourism.

The government gives serious attention towards Brunei Darussalam’s natural environment. This is reflected in the country’s long term development plan. For example, millions of dollars have been allocated to support forest conservation program which includes to conserve and expand the natural forest’s resources. Its main objective includes developing various eco-tourism destinations, conserving trans-boundary forest and also to develop Tropical Biodiversity and Forest Conservation Centre. New facilities for tourist’s destinations and recreational parks have been build and present facilities have been improved in order to accommodate the increasing number of visitors.

Suitable to its strategic location as well as the country’s involvement towards conserving the biological diversity through the ‘Nadi Borneo’ program, Heart of Borneo (HoB) became part of the country’s future development structure and one of its priority is to channel it in educational systems. Although Brunei is still new in such type of involvement, the land which still consists of 70% tropical rainforest having remarkable proportion of biodiversity, provides habitats for the variety of flora and fauna endemic to the island of Borneo. There are still ‘wild’ and ‘virgin’ areas that has not been exposed. Some parts has the potential to be developed and may offer sweet and charming memories for the nature lovers.

The Ministry of Industry and Primary Resources through the Department of Brunei Tourism Development is actively implementing domestic tourism campaigns within the country itself through the KNK (Kenali Negara Kitani) or ‘Know Our Own Country’ campaign besides promoting the greenness and uniqueness of Brunei in other countries. Accommodation facilities are also no longer of major concerns. Compared to 20 years back, Brunei has shown many changes. There are much more choices of world-class hotels and not to mention the ‘homestay’ trends that are preferred nowadays. These accommodations are not only located in rapid developing towns within all the four districts, they also include the hinterland which offers great deal of price. For those of you preferring adventurous and challenging activities such as tracking or sight seeing the natural flora and fauna found in Brunei, I recommend you to have a stay in the ‘Ulu-Ulu Resort’ at National Park Ulu Belalong in the Temburong district. You will sure experience a difference.

Tourism has certainly brought handsome profits and returns to the country’s economy and prepares many labour opportunities to the locals. The effort in expanding this tourism field in Brunei Darussalam will strive towards making Brunei as a tourist attraction and interesting destination. Regarding the safety services, whatever you do and wherever you go, I truly believe that Brunei is a safe and peaceful place to enjoy the calmness away from heavy workloads and the city noisiness.

Brunei A Member of The Global Community

Since gaining her independence in 1984 Brunei Darussalam has earned global respect due to her commitment in international undertakings and her active roles, together with other nations, in the promotion of economy, security, politics as well as social and cultural for mutual benefit and cooporation.

As sovereign nation her admission into key international associations such as ASEAN (The Association of Southest Asian Nations), Commonwealth, the United Nation (UN), Asia Pasific Economic Cooperation (APEC), and Organisation of Islamic Conference (OIC), Non-Aligned Movement (NAM) and the World Trade Organisation (WTO) signaled global acceptance and respect of the nation's vast potentials in the global community. Beside, Brunei Darussalam is also one of the member in APT, APDC, ESCAP, GP 77, GATT/WTO, ICAO, IMO, IMF, WMO, UNDP, WHO, WIPO, WTO-GBT, ASEM, EALAF, in addition she plays a leading role in the new economic zone known as Brunei-Indonesia-Malaysia-Philippines-East ASEAN Growth Area (BIMP-EAGA).

Brunei will continue to contribute according to its capabilities in associating with regional and national cooperations in what ever field that would benefit the global community.

Doing Business in Brunei Darussalam

In the 90s, the success of the Association of Southeast Asian Nations (ASEAN) region has become the envy of most of the economic groupings around the world. High economic growth and increased prosperity coupled with the abundance of human and natural resources will see continued growth in this region.

Although small in terms of size and population, Brunei Darussalam has a very important role to play in the ASEAN, particularly in the recently established sub-regional growth area - the Brunei, Indonesia, Malaysia, Philippines - East ASEAN Growth Area (BIMP-EAGA). Brunei is strategically located in the ASEAN. It is the hub to all the ASEAN countries. Hence, the Sultanate can play an important role as a communication and transportation hub and at the same time, promote and develop other non-oil and gas industries like the eco-tourism industry.

The country has a very stable political and economic environment with very good infrastructure, conducive for foreign investors. His Majesty’s Government has always welcomed foreign investors to establish a business partnership in Brunei.

Common questions asked by investors interested in coming to Brunei are:

How do we do business in Brunei?
What type of company to set up?
What are the procedures for setting up a company?
Do we need a branch or local limited company?
What are the local statutory requirements for companies operating in Brunei?
What forms are required to be completed?
What are the filing requirements in Brunei?

The following is a brief overview on how to establish a company in the country.

COMPANY LEGISLATION

1. FORMS OF BUSINESS OPERATORS

Business enterprises in Brunei may be organized in the form of: a. Sole Proprietorship b. Partnership c. Private Limited Company (Sendirian Berhad) d. Public Company (Berhad) e. Branch of Foreign Company
Generally speaking, there is no restriction on the types of business that may be set up. However, businesses where the public interest is directly affected such as banks, finance companies, motor vehicle insurers, money lenders and travel agents must obtain special licenses from the appropriate Government agency. Lawyers, auditors, doctors and other professionals also have to be approved by the Government.

Sole Proprietorship and Partnership

Sole Proprietorships and Partnership are not subject to tax in Brunei and must be registered with the Registrar of Business Names unless the full name of all individuals concerned is used for the business.
Registration approval is generally not granted to foreigners. A partnership may consist of individuals, local companies and branches of foreign companies, but the number of partners must not exceed twenty.

Private Limited or Public Companies

The following are the various types of companies that can be registered under the Companies Act 1956 (Laws of Brunei, Chapter 39):
i) A company limited by shares.ii) A company limited by guarantee and not having a share capital.iii) A company limited by guarantee and having a share capital.iv) An unlimited company having a share capital.
The above companies may be either Private Limited (Sendirian Berhad) or Public (Berhad). The private company limits its maximum number of members to fifty, restricts share transfer, and prohibits public invitation for subscription to its shares or debentures. All companies are required to have a minimum of two directors, and at least half the number of directors must be citizens of Brunei Darussalam. Corporate bodies can act as directors unless specifically prohibited by the Articles of Association.
Public companies must have at least seven shareholders and private companies at least two. Shareholders need not be Brunei citizens or residents, and a parent company can hold shares in its subsidiary company.

Branch of Foreign Company

Foreign companies which establish a place of business in Brunei and do not incorporate a local company are required to register as a branch of foreign company. Branches of foreign companies have the same powers and authority as Brunei Companies.

2. FORMATION PROCEDURES

The principal requirements for the formation of a Brunei company are as follows:-

Name approval and reservation of name

The Registrar of Companies (ROC) generally requires Form A to be submitted for approval and reservation of name for a company to be incorporated in Brunei Darussalam.Two or more shareholders each subscribing to at least one share in the proposed company.

Submission of documents

Once the ROC has approved the reservation of the proposed name of the company, the following documents will have to be lodged with the ROC. i) Memorandum and Articles of Association ii) Letters of consent from the Directors iii) Form X iv) Notice of the Situation of Registered Office The certificate of incorporation will be issued by the ROC after compliance with all the above requirements.

Registration fees on capital

Brunei registered companies are required to pay from B$300 where the capital does not exceed B$25,000 to a maximum of B$35,000 where the capital is in the region of B$150,000,000. In view of this graduated scale, many companies tend to incorporate with limited amounts of authorized share capital.

Duration of registration

The whole procedure takes approximately one to two months.

Branch of a foreign company

a. Registration of branch of a foreign company
The procedure for registering a foreign branch is similar to incorporating a local company but registration expenses are slightly less than that for incorporating a local company.
b. Name approval & reservation of name
The proposed name of the branch must be approved by the ROC prior to the approval for registration of a branch.
c. Submission of documents
The documents required to be filed by the ROC differs from those required for the registration of a Brunei company. The filing documents required for registering a branch are as follows:
A certified true copy of the Memorandum and Articles of Association of the foreign company (this has to be notarized by a Notary Public, and if non-English, to be translated into English).
An original copy of the Board Resolution approving the registration of a branch (this has to be notarized by a Notary Public, and if non-English, to be translated into English).
A list of directors together with their names, passport numbers or identity card numbers, occupation and residential addresses (this has to be notarized by a Notary Public, and if non-English, to be translated into English).
Submit name and address of person residing in Brunei Darussalam (Section 299 of the Companies Act) authorized to accept notices on the company’s behalf on a prescribed form.
d. Registration fees on capital
Registration fees payable in respect of the registration of a branch are 50% of the fees payable for Brunei registered companies. The registration fees are computed based on the authorized capital of the holding company and then reduced by 50%.
e. Duration of registration
The whole procedure normally takes approximately 6 to 8 weeks before the certificate of incorporation is issued.Once the branch is incorporated, Form IV (F) will be required to be filed should there be any changes in the particulars of directors of the company incorporated outside Brunei.

3. STATUTORY RECORDS

The Companies Act 1956 requires companies incorporated in Brunei Darussalam to maintain the following records:
Minute Book of Members’ Meetings
Minute Book of Directors’ Meetings
Minute Book of Managers’ Meetings
Register of Members
Register of Directors and Managers
Register of Charges

4. BOOKS OF ACCOUNT

In addition to the above statutory books, the company is also required to maintain proper books of account which will adequately reflect the transactions and financial position of the company to facilitate the preparation of a Balance Sheet and Profit and Loss Account. The Books of Accounts can be kept at the registered office of the company or in any place the directors consider appropriate.

5. AUDIT AND ACCOUNTS

All Brunei Darussalam incorporated companies, whether private or public must appoint Brunei Darussalam Registered Auditors who are authorized by His Majesty the Sultan in Council to practice in Brunei.
The Auditors are to report to the shareholders whether they have obtained all the information and explanations required and whether the Balance Sheet submitted to the Annual General Meeting of the shareholders gives a true and fair view. The disclosure requirements set out in the Companies Act are minimal with the format and manner of accounts presentation not prescribed. There are, however, international firms of accountants in Brunei and, in general, accounts comply with International Accounting Standards, with certain allowance for local companies.
Branches of foreign companies should prepare branch accounts which do not require to be audited but are required, however, to support the tax computation.

6. LOCAL EQUITY PARTICIPATION

His Majesty's Government strongly encourages local participation in both the ownership and management of Brunei companies. Although there is no specific restriction on foreign participation in equity, local participation can be of considerable assistance with regards to operating in Brunei, especially when tendering for contracts with either His Majesty's Government or Brunei Shell Petroleum Company.

7. REPORTING REQUIREMENTS

Every Brunei company having a share capital is required to submit an annual return in the prescribed form to the Registrar of Companies within 28 days of its annual general meeting.
For a public company, the return must be accompanied by a copy of the latest accounts. Private companies, however, are not required to file their annual accounts with the Registrar of Companies.
Branches of foreign companies are required to submit, in every calendar year, a copy of their head office annual accounts to the Registrar of Companies for registration.
In addition to the above, most businesses are required to submit financial and non-financial details each year to the Department of Economic Planning and Development for statistical purposes.

8. COMPANY OR BRANCH

The main benefit of setting up a local company rather than a branch is that the local company is a separate legal entity and ,accordingly, the parent is not chargeable with its liabilities. As the differences in Brunei are not that significant, the deciding factor as to which type of entity to choose is likely to depend on tax and related considerations in the home country.

RELATED ACTS

COMPANIES ACT (CHAPTER 39)

The Companies Act is the main Act which provides for the incorporation and registration of companies in Brunei Darussalam. It provides for the conditions under which companies incorporated outside Brunei Darussalam may carry on business in Brunei Darussalam. The Act also controls the functioning of companies within Brunei Darussalam in related matters.

BUSINESS NAME ACT (CHAPTER 92)

Pursuant to Section 138(2) of the Companies Act (CAP 39) two or not-less-than half of the number of directors (whichever is greater) shall be nationals of Brunei. Nationals of Brunei in this context do not include permanent residents. This Act provides for the registration of firms, individuals and corporations carrying on business under business names and not a company with liability. It further provides as to the names, styles, titles or designations under which business can be carried on and for purposes connected therewith.

MISCELLANEOUS LICENSES ACT (CHAPTER 127)

This Act provides for the licensing, regulations and control of certain commercial places and activities and for incidental purposes. Miscellaneous licenses are renewable annually.

EQUITY REQUIREMENTS

Brunei Darussalam is flexible towards foreign equity requirements. One Hundred percent foreign equity can be considered for export-oriented industries with the exception of industries based on local resources, industries related to national food security and car dealerships whereby some level of local participation is required.

LAND CODE (CHAPTER 40)

Foreign land ownership is not allowed in Brunei Darussalam except with prior approval in writing of His Majesty in Council.

Source: Setting Up A Company in Brunei Darussalam Ministry of Industry and Primary Resources