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Starting a business in Brunei : Guide

Staff Reporter | 11:57 PM |

Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Brunei. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected from World Bank: Doing Business 
o.ProcedureTime to CompleteAssociated Costs
1Accountant prepares Form A to verify company name5 daysBND 1,505
2Make statutory declaration at Magistrate’s Court1 dayBND 9
3Sumbit required documents and registraton fees for company registration at the Registry of Companies10 daysRegistration fee on capital (BND 300 for the first BND 25,000 of share capital and BND 20 for every BND 5,000 for the share capital between BND 25,000 and BND 500,000) + BND 20 for Memorandum and Articles of Association + BND 10 for Form X; BND 10 for each consent letter (5) + BND 10 for Notice of the Situation of Registered Office + BND 25 for Certificate of Incorporation + BND 80 for 2 certified copies of the Memorandum and Articles of Association at BND 4/page x 10 pages + BND 10 postage stamp for the original Memorandum and Articles of Association + BND 5 postage stamp for each certified copy of the Memorandum and Articles of Association to be returned to the applicant
4Make a company seal3 daysBND 185
* 5Register for Employees Provident Fund1 day, simultaneous with previous procedureno charge
6Purchase application form for miscellaneous license (rampaian) at the Municipal Board of Bandar Seri Begawan1 dayBND 2
7Apply for miscellaneous license (“Rampaian”) at Municipal Board2 monthsBND 50 (license application) + BND 50 (FSD approval)
* 8Apply to Fire Services Department (FSD) for rampaian approval1 day (simultaneous with procedure 7)no charge
* 9Apply to the Ministry of Health for rampaian approval1 day (simultaneous with procedure 7)no charge
* 10Receive inspection from Fire Service Department1 day (simultaneous with procedure 7)BND 750
* 11Receive inspection from Ministry of Health1 day (simultaneous with procedure 7)no charge
* 12Pick up approval Fire Service Department1 day (simultaneous with procedure 7)no charge
* 13Pick up approval from Ministry of Health1 day (simultaneous with procedure 7)no charge
* 14Submit approval letters to licensing authorities1 day (simultaneous with procedure 7)no charge
15Pick up rampaian license21 daysBND 100
* Takes place simultaneously with another procedure.