Brunei Darussalam’s GDP per capita of US$31,070 is the second highest per capita income in the ASEAN (the Association of Southeast Asian Nations) region. But with a population of around 390,000 citizens (plus a significant number of foreign workers) Brunei’s economy is small.
The oil and gas sector forms the backbone of the economy. But Brunei’s oil and gas reserves are conservatively estimated to last only another 20 years. Small-scale manufacturing and primary production are the predominant non-oil sectors.
The government is proactively diversifying the country’s sources of economic growth including pushes into tourism, transportation, financial services, developing oil and gas-related downstream activities and a port and industrial complex.
Common entry points
The capital, Bandar Seri Begawan is the centre of administration and the country’s commercial centre.
Getting your product into market
Brunei generally has very low tariffs. In general, basic foodstuffs and goods for industrial use are exempted.
Taxation
A company, whether incorporated locally or overseas, is considered as resident for tax purposes if the control and management of its business is exercised in Brunei. A non-resident company is only taxed on its income arising in Brunei. There are no withholding taxes on dividends.
Logistics
Royal Brunei Airlines flies to and from Auckland and Brunei.
Setting up an office
Generally, companies operating in Brunei must either register as a branch of a foreign company or incorporate as a Brunei limited company. Should a foreign business wish to incorporate in Brunei, at least half the directors in the company must be citizens or permanent residents of Brunei.
Opportunities
- Brunei is part of the ASEAN, Australia and New Zealand Free Trade Agreement. The agreement will eliminate tariffs between member nations
- Brunei welcomes foreign investment. Foreign investors are invited to participate in the current economic diversification programme of the country.
Cultural and business tips
- Introductions and connections are important and necessary in status-conscious Brunei
- Bahasa Melayu (Malay language) is the official language but English is also widely spoken and understood by most of the population.
Useful links
