Broad Regulatory Environment

The Government actively encourages foreign investments to diversify and improve the economy. Brunei offers investors a good location within the ASEAN region, stable economic and political environment and efficient infrastructure.

The Ministry of Industry and Primary Resources offers a one-stop agency to approve development proposals and coordinate all investment activities. The Economic Planning Unit regulates the development of existing businesses, while the Economic Development Board governs establishment of new industries.

There are four categories of industrial activities as follows:

• industries based on local resources
• industries related to national food security
• industries for the local market (100% foreign equity allowed)
• export industries (100% foreign equity allowed)

All companies must be registered with the Registrar of Companies either as a branch of a foreign company or incorporated locally. Businesses are licensed under the Miscellaneous Licenses Act.

New investments meeting "pioneer status" criteria are exempted from tax for up to 5 years depending on the amount of capital invested. Investment Incentive Act provides tax advantages at start up and ongoing incentives throughout an industry's growth and expansion, which are comparable if not better than those offered by other countries in the region.

Policies, Regulations and Guidelines

Guidelines for Business Registration

Tax Structures and Tax Agreements on Trade and Investments

Brunei has no personal income tax, sales tax, manufacturing or export taxes, capital gains tax. Companies are the only ones subject to income tax, which is considered the lowest in the region.