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
* Takes place simultaneously with another procedure.
This information was collected from World Bank: Doing Business
| o. | Procedure | Time to Complete | Associated Costs |
|---|---|---|---|
| 1 | Accountant prepares Form A to verify company name | 5 days | BND 1,505 |
| 2 | Make statutory declaration at Magistrate’s Court | 1 day | BND 9 |
| 3 | Sumbit required documents and registraton fees for company registration at the Registry of Companies | 10 days | Registration 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 |
| 4 | Make a company seal | 3 days | BND 185 |
| * 5 | Register for Employees Provident Fund | 1 day, simultaneous with previous procedure | no charge |
| 6 | Purchase application form for miscellaneous license (rampaian) at the Municipal Board of Bandar Seri Begawan | 1 day | BND 2 |
| 7 | Apply for miscellaneous license (“Rampaian”) at Municipal Board | 2 months | BND 50 (license application) + BND 50 (FSD approval) |
| * 8 | Apply to Fire Services Department (FSD) for rampaian approval | 1 day (simultaneous with procedure 7) | no charge |
| * 9 | Apply to the Ministry of Health for rampaian approval | 1 day (simultaneous with procedure 7) | no charge |
| * 10 | Receive inspection from Fire Service Department | 1 day (simultaneous with procedure 7) | BND 750 |
| * 11 | Receive inspection from Ministry of Health | 1 day (simultaneous with procedure 7) | no charge |
| * 12 | Pick up approval Fire Service Department | 1 day (simultaneous with procedure 7) | no charge |
| * 13 | Pick up approval from Ministry of Health | 1 day (simultaneous with procedure 7) | no charge |
| * 14 | Submit approval letters to licensing authorities | 1 day (simultaneous with procedure 7) | no charge |
| 15 | Pick up rampaian license | 21 days | BND 100 |