Brunei Offshore: Will Brunei offshore jurisdiction suit you?
Offshore Brunei – a tiny state that bites into the territory of Malaysia and wins not only a place under the sun, but also millions of investments. The country has one of the highest per capita income levels and offers interesting offshore opportunities for international business.
By the way, despite the wealth, sneezing on the street is not worth it – a fine is written for it.
ofsor (Offshore Brunei – fined for sneeze, not bank secrecy)
General data about Brunei
Capital of the country: Bandar Seri Begawan
Country population: 401,890 (2011 estimate)
Area: 5,765 km2
Official language: Malay
GDP: $ 16.11 billion (2013)
GDP per capita: $ 38,563
Currency: Brunei Dollar (BND)
Creating a business in the offshore jurisdiction of Brunei
Few people pay attention to the offshore jurisdiction of Brunei. Sultanate is considered to be a tourist paradise, and its ruler – a generous donor of tips (200 000 per week in any country).
However, the offshore industry in Brunei is well developed and attracts more and more attention. Of course, the competition is made up of Asian offshore giants Singapore and Hong Kong, and international Belize, Seychelles and others.
The most important thing to know about Brunei’s offshore industry is that the secrecy of the data is sacred. Only a few agreements for the exchange of information DTA and TIEA have been signed and the list includes ten names.
In addition, Brunei offers non-residents and international business a stable economy, a developing banking sector, interesting legislation and an English-speaking population.
If you are a Muslim, then Islamic banking opens up before you – after all, the country has been Islamic for almost 700 years.
A common form of international business is IBC. And she has differences from other IBCs that register in the world. First, the annual duty is the same for any share capital, while in popular Belize or Seychelles, if the share capital exceeds a certain threshold (50-100 thousand), the rate rises.
This makes Brunei a profitable place for various funds, where there are many investors and holders of shares.
Secondly, it is necessary that the authorized capital be paid in any other currency except the local Brunei dollar. However, if you want to have a connection with this currency, it is permissible to pay the fund with the help of the Singapore dollar, to which the Brunei is pegged at a ratio of 1 to 1.
An IBC requires at least one owner and director, and one person is allowed, both natural and legal. Also requires at least one secretary. If there are more, then one of them must be a resident of Brunei.
Local companies still have two drawbacks: the cost of creating such a company is higher than that of other IBCs, which is explained by the low demand for high product quality; and long clearance of the new company – the required period is from one to several weeks. This is important to consider when planning.
Corporate taxes in the offshore jurisdiction of Brunei
Brunei IBC companies do not pay corporate tax. Also, taxes are not charged on interest, dividends or other sources of income.
The stability of Brunei is of interest to investors, and they are ready to bring their assets into the country. Banks strive to maintain their reputation and are constantly evolving. So far, they have not caught up with the leaders in Hong Kong or Singapore, but they are doing everything possible for that.
Some experts are so impressed with the local banking system that they even recommend when opening a Brunei IBC to open an account for it right on the spot.
Among the banks that accept non-residents, most often recall Baiduri Bank, Standard Chartered and HSBC. The latter feels much better and healthier in Asia than in his native Britain.
If there is a guarantor, it is possible to open an account remotely.
The accounts of non-residents are strictly protected by the law on bank secrecy and the only way to open it is a court order. In this case, it is desirable that a person be accused of money laundering and other serious offenses – this is the only thing that is strictly punished in the state.
In other cases, for the disclosure of bank secrecy implies a prison term of up to two years and a fine of 100,000 dollars.
Offshore life Brunei
Offshore Brunei is a popular tourist destination and an expensive country to live. On the other hand, there is no income tax, dividends, but there are real estate, social insurance and stamp duties on many documents. In general, tax policy is much softer than in most large countries.
It is worth noting that Brunei did not recognize the state of Israel, therefore, passport holders of this country are not allowed into the country and do not open accounts and companies for them. It is possible to get around this through special intermediaries, but it is much better to have a second passport for such cases. Here it is – the real benefit of a second passport!