Offshore firms within the Sultanate are not charged any taxes that allow decreasing costs of an entrepreneur. However, companies shall submit audit and accounting reports. The only exception is the possibility to refuse from the bank and insurance license.
The state offers 5 basic forms of business conduction:
- Individual enterprise. Such enterprises are exempt for the corporate tax. Concerning the registration process: the owner is granted the Certificate specifying the name of the firm.
- Partnership. This form of business implies involvement of foreign, local companies and individuals. It is allowed to join up to 20 partners and they are exempt from taxes.
- A closed company can be a limited liability company or an unlimited company. The company shall have 2 - 50 shareholders that can be non-residents of the sultanate. The only specific aspect is the tax that amounts to 30% of the income.
- An open company can also be a company with a different liability status and at least 7 directors. However, half of the directors shall mandatorily be citizens of the sultanate, the same requirement is set for auditors.
- Affiliates of a foreign firm. An offshore company in Brunei can be set in the form of an affiliate. To set up a firm like that one shall have one or more shareholders residing within the jurisdiction and having authority in the affiliate.
After the form of incorporation is chosen, an offshore company can be set up.