Brunei – Self-Employment

How does self-employment work for expats in Brunei?

Self-employment is accessible in Brunei for both locals and foreign nationals, but expats must secure a work permit from the Bruneian authorities before carrying out any self-employed activities. This sets Brunei apart from jurisdictions such as Portugal or Germany, where purpose-built self-employment visas or freelance registration categories are open to foreign nationals. Brunei’s immigration and work authorisation system is oriented principally around traditional employer-employee arrangements rather than around individual self-employed status.

Brunei’s legal system draws from a blend of British common law and Shariah law, and employment matters are governed by the Employment Order of 2009, which establishes baseline standards for workers’ rights and conditions. Brunei draws a clear distinction between self-employed individuals or contractors on one hand and salaried employees on the other; incorrectly classifying a contractor as something else can expose companies to financial penalties.

Only Brunei citizens or permanent residents may register a sole proprietorship, and such owners bear full personal liability for any business debts that arise. Foreign nationals are excluded from this registration category entirely and must instead explore company formation or another permissible structure. This is a critical distinction for anyone arriving from a country where freelance or sole-trader registration is routinely available to all legal residents.

As a general rule, all foreign nationals travelling to Brunei for work purposes must hold a valid employment visa and employment pass before entering the country. Securing a work permit requires either a job offer from a local employer or a business plan outlining the proposed self-employed activities. Always verify the current work permit requirements directly with the Department of Immigration and National Registration before committing to any plans.

What are the different self-employment and business structures available in Brunei?

The principal business structures in Brunei include Sole Proprietorship, Partnership, Private Company (Sdn Bhd), Public Company (Bhd), International Limited Company, Joint Venture, Brunei Free Zone Company, Branch, and Representative Office. Each carries distinct implications for liability, taxation, and who is legally entitled to register. For most expat entrepreneurs, the realistic options are effectively limited to the private limited company, the international limited company, or a branch of an existing foreign company.

A sole proprietorship is the most straightforward business form — a firm owned and operated by a single individual or company with no partners — but the sole proprietor bears unlimited personal responsibility for all debts, losses, and obligations of the business. Eligibility to register a sole proprietorship is confined to Brunei citizens and permanent residents; applicants must hold a valid NRIC, must not have been declared bankrupt, and must be at least 18 years old. This structure is consequently unavailable to the overwhelming majority of expats.

Partnerships are likewise restricted to local citizens and permanent residents for registration purposes. Non-residents seeking to establish a partnership must obtain the necessary permits or licences from the Department of Immigration, Economic Planning and Development, and the Ministry of Labour. Two partnership forms exist: a general partnership, where every partner carries unlimited liability, and a limited partnership, where the general partners retain unlimited liability while limited partners’ exposure is capped at the amount they have invested.

Many entrepreneurs opt to form private limited companies (Sendirian Berhad / Sdn Bhd), especially when limited liability or future expansion is a priority. The private limited company is the most widely used structure among expat founders in Brunei because it constitutes a separate legal entity, restricts personal liability, and does not require the owner to hold Bruneian nationality. No minimum share capital is mandated.

A Brunei Free Zone Company is a specialised business vehicle established within the Pulau Muara Besar Free Zone, offering a range of advantages and exemptions to both domestic and international investors. Companies operating within the free trade zone are exempt from corporate tax, making this option particularly compelling for internationally focused businesses centred on trade or logistics.

How do you register as self-employed in Brunei?

Because foreign nationals cannot register as sole traders in Brunei, “registering as self-employed” in practice means either incorporating a private limited company or, for those who hold Brunei permanent resident status, registering a sole proprietorship. The steps below cover the sole proprietorship path for eligible individuals (citizens and PRs) and the company incorporation route for foreign nationals — with company incorporation addressed in greater depth in the section that follows.

The authority responsible for business registration and company formation in Brunei is the Registry of Companies and Business Names (ROCBN), operating under the Ministry of Finance and Economy. The ROCBN’s One Common Portal (businessBN) serves as the primary digital gateway for all business registrations. Always consult the portal and the Ministry of Finance and Economy website for up-to-date fees and requirements, as these are revised from time to time.

For eligible individuals (Brunei citizens or permanent residents) registering as sole traders, the process is as follows:

1. Check name availability. Select a unique business name and reserve it through the Brunei Registrar of Companies, which can be done online via the Ministry of Finance and Economy portal. A fee of BND 5.00 is charged for each name proposed — verify the current fee at the official ROCBN portal, as amounts may change.
2. Request activity approval. Seek activity approval from the Ministry of Finance and Economy before confirming your chosen business name.
3. Gather required documents. You will need a signed copy of your NRIC and, where applicable, an address for service of documents. Certain sectors require additional supporting licences that must be applied for separately.
4. Submit your application online. Log in to the official businessBN portal, complete the online form, upload your documents, and pay the applicable fee. Once approved, a Business Registration Certificate is typically issued within one working day.
5. Obtain sector-specific licences. Certain industries — such as food or healthcare — require additional licences that must be obtained through separate applications.

While Brunei’s tax framework is highly favourable — there is no personal income tax — sector-specific licences and compliance obligations must be fulfilled. Always confirm current registration fees and processing timelines with the ROCBN before proceeding, as the figures cited here are indicative as of 2025.

How do you set up a company in Brunei as an expat?

Company registration and formation in Brunei is governed by the Companies Act of 1984, which provides the legal framework within which businesses are incorporated and operate in the country. The private limited company (Sdn Bhd) is the path most frequently chosen by expat founders. Below is a step-by-step guide to incorporating one:

1. Choose your business structure. Determine whether a private limited company, free zone company, or branch of a foreign company is most appropriate for your circumstances. Factor in your industry sector, the number of intended shareholders, and whether your target market is domestic or export-oriented.
2. Reserve your company name. Submit a name reservation application to the Registry of Companies and Business Names (ROCBN). The reservation remains valid for a defined period during which the full registration process must be completed. Check the current name reservation fee on the ROCBN portal.
3. Prepare incorporation documents. Draft and notarise the company’s Memorandum and Articles of Association. Compile all necessary documentation, including the completed registration form, proof of identity, and details of the agreed company structure.
4. Meet directorship and shareholding requirements. A minimum of two shareholders is required. At least half of the company’s directors must be Brunei citizens or permanent residents. Foreign founders will therefore typically need to appoint at least one local director — an important factor to plan for early.
5. Appoint a local auditor. The law requires the appointment of auditors who reside in Brunei; they must submit annual reports to the relevant authorities.
6. File the registration application with ROCBN. Once all documents are prepared, submit the registration application to the Registry of Companies and Business Names via the businessBN portal.
7. Receive your Certificate of Incorporation. Following successful verification of the submitted documents, the ROCBN issues a certificate of incorporation confirming that the company is legally registered and recognised in Brunei.
8. Register with the Revenue Division. All registered entities must register with the Revenue Division under the Ministry of Finance and Economy (MOFE) and file corporate tax returns, regardless of whether any tax is due.
9. Apply for sector licences and work permits. The employing company must be registered with the ROCBN and must comply with the requirements of the Department of Labour and the Department of Immigration and National Registration concerning the engagement of foreign workers.

The minimum capital required for company registration in Brunei is BND 1, which may vary depending on the business structure chosen (as of 2025 — verify the current requirement at the ROCBN). A local partner is not universally required; however, foreign investors must involve a local partner for certain government contracts and oil and gas projects. For a branch of a foreign company, at least one branch director must be resident in Brunei and authorised to represent the branch’s interests in the territory.

Can you work as a digital nomad in Brunei?

Brunei Darussalam currently has no dedicated digital nomad visa. This distinguishes it from an expanding list of countries — including Portugal, Estonia, and the UAE — that have rolled out specific permits for remote workers. For location-independent professionals, this creates a genuine legal ambiguity that demands careful consideration.

Brunei’s immigration framework offers a Social Visit Visa for tourists, a Professional Visit Visa for those undertaking professional work or providing specialist expertise on particular projects, a Business Visit Visa for investment or business-related travel, and an Employment Visa for those formally working in Brunei. None of these categories is tailored for remote workers servicing overseas clients, although the Business Visit Visa may have relevance for short-term exploratory trips.

Citizens of the United States and the European Union may enter Brunei visa-free for business visits of up to 90 days. Citizens of Australia, Iceland, Malaysia, New Zealand, Norway, Oman, Singapore, South Korea, the UAE, and Ukraine may visit for up to 30 days without an employment visa. Consult the Department of Immigration and National Registration for a comprehensive, current list of visa-exempt nationalities and permitted durations, as these arrangements are subject to change.

In practice, working as a digital nomad in Brunei is feasible, but restrictions apply. Digital nomads are expected to obtain a work permit and register with the relevant government agencies, and certain categories of business activity are restricted. Operating for exclusively foreign clients while on a tourist or social visit visa carries legal risk and is not advisable without formal guidance from a qualified Brunei immigration lawyer. Anyone intending to stay longer should consult the immigration authorities and consider retaining a local legal adviser to structure their arrangements appropriately.

What taxes and social contributions apply to self-employed expats and business owners in Brunei?

Brunei’s tax regime is one of its most compelling attractions for business founders. There is no personal income tax, and no export, sales, payroll, or manufacturing taxes are levied. This stands in striking contrast to employment tax systems in countries such as Germany, France, or the United Kingdom, where employers and employees typically contribute sizeable proportions of salary through taxes and social charges. In Brunei, the overall fiscal burden on individuals is structurally minimal.

Businesses are subject to a standard corporate income tax rate of 18.5%. Non-resident companies can expect to be taxed on income sourced locally or on profits generated directly through operating within the country. Sole proprietorships and partnerships are not subject to corporate income tax. These rates are current as of 2025 — always confirm the prevailing rate with the Revenue Division, Ministry of Finance and Economy.

No withholding tax applies to dividend payments, but directors’ remuneration may attract a withholding tax rate of 20%, and royalties remitted to non-residents are subject to withholding tax at 10%. These are material considerations for expat company directors who pay themselves through a Brunei-registered entity.

Since Brunei has concluded various income tax treaties aimed at eliminating double taxation, the withholding tax rate on royalties may be reduced under those arrangements. If income flows between Brunei and another jurisdiction, consult the Revenue Division’s treaty register, as double taxation relief may be available.

On the subject of social contributions: Brunei operates the Tabung Amanah Pekerja (TAP) employees’ trust fund, which applies to employees rather than to self-employed individuals. Employers must obtain endorsement from the Employees Trust Fund (TAP) before submitting applications for foreign worker licences. As a company director with staff, you will have TAP obligations; as a purely self-employed individual with no employees, you will generally fall outside the TAP framework — but confirm this with a local accountant for your specific circumstances.

Are there any incentives, grants, or programmes to encourage expat entrepreneurs in Brunei?

The Brunei Economic Development Board (BEDB) actively promotes Brunei Darussalam as a preferred investment destination across five priority sectors: Downstream Oil & Gas, Manufacturing & Other Services, Food, Tourism, and Info-Communications Technology. Foreign entrepreneurs operating in these fields may find the BEDB a valuable initial port of call. Visit the BEDB website for current incentive programmes and eligibility criteria.

SME support mechanisms and financing options may be accessible through the Brunei Economic Development Board. The Brunei Darussalam Entrepreneurs Financial Scheme provides financial assistance to local entrepreneurs, encompassing start-up capital and working capital loans. While many such schemes are primarily directed at Brunei citizens and permanent residents, foreign-owned companies in priority sectors can sometimes access related support or be introduced to eligible local partners through BEDB facilitation services.

The Brunei Free Zone Company structure, situated within the Pulau Muara Besar Free Zone, extends a range of benefits and exemptions to both domestic and international investors. Businesses established in the free trade zone are exempt from corporate tax. This is broadly analogous to free zone arrangements in Dubai or certain enterprise zones in Singapore, where companies serving international markets can take advantage of preferential tax and regulatory conditions. However, free zone companies are typically subject to limitations on direct trading within the Brunei domestic market.

Brunei Vision 2035 aims for Brunei to be recognised internationally for its highly educated and skilled workforce, its quality of life ranking among the top ten nations on the UNDP Human Development Index, and a dynamic, sustainable economy placing in the top ten countries by per capita income. This long-term development strategy has encouraged greater receptiveness to foreign investment in priority sectors. Confirm the current availability and terms of any programme directly with the BEDB or the Ministry of Finance and Economy, as schemes evolve over time.

What are the practical challenges of being self-employed or running a business in Brunei?

Despite its appealing tax environment, Brunei presents a number of real-world obstacles for expat entrepreneurs. Being aware of these beforehand can prevent costly delays and missteps.

Local director and auditor requirements. At least half of a company’s directors must be Brunei citizens or residents. Identifying and engaging a trustworthy local director is typically one of the first hurdles foreign founders encounter. This requirement is analogous to nominee director arrangements seen in Singapore or Hong Kong, and similarly carries risks if the agreement is not properly documented. Retaining a reputable local corporate services firm to advise on this arrangement is strongly recommended.

Professional advisers. Anyone considering starting a business in Brunei is well advised to consult legal or financial professionals before settling on a structure. Companies are required to maintain accurate accounting records and produce annual financial statements in accordance with International Financial Reporting Standards (IFRS). A qualified local accountant familiar with both IFRS and the requirements of Brunei’s Revenue Division is not merely advisable — for incorporated entities, it is a practical necessity.

Banking access. Opening a business bank account in Brunei as a foreign national can be a lengthy exercise. Banks typically require a certificate of incorporation, a business plan, proof of address, and director identification documents, and some institutions also insist on in-person visits. Expect the process to take several weeks. Check directly with major banks such as Baiduri Bank or Bank Islam Brunei Darussalam (BIBD) for their current account opening requirements for foreign-owned entities.

Work permit processing. The processing time for an employment visa is five working days (as of the date of available data — verify with the immigration authorities for current timelines). The Foreign Workers Licence (LPA) is mandatory for all foreign workers in Brunei before they may legally work, and is generally issued for the duration of employment, up to one to two years, with the option to renew. Work permit renewals must be managed proactively to avoid any lapse in legal status.

Sector restrictions and licences. The permits and licences required will depend on the nature and industry of your business. Operating a food and beverage outlet, for example, requires a relevant licence from the appropriate government agency. Certain sectors restrict foreign ownership or require majority local participation. Researching sector-specific requirements early in your planning process is essential.

Cultural and administrative context. Brunei’s official language is Malay, though English is also a recognised official language, particularly in business settings and as a medium of instruction in education. Most official business registration processes are conducted in English, which reduces the language barrier relative to some other Southeast Asian countries. That said, cultivating relationships with local partners and appreciating Islamic business practices — including the observance of Ramadan and daily prayer times — is important for smooth day-to-day operations.

Invoicing foreign clients. Brunei does not impose VAT or GST, which simplifies cross-border invoicing considerably compared with, for example, EU-based businesses navigating reverse-charge VAT rules. Nevertheless, expat business owners should maintain thorough records of international transactions and seek advice on whether their home country’s tax obligations could apply to income earned abroad through a Brunei-registered entity.

Frequently asked questions

Can I be employed by a Brunei company and also run my own business at the same time?

This depends on the terms of your employment contract and the conditions attached to your work permit. Many employment passes in Brunei prohibit secondary work activities. You should review your LPA (Lesen Pekeria Asing) conditions carefully and obtain written permission from your employer and, where necessary, from the Department of Immigration before undertaking any independent commercial activity alongside your employment. Violating permit conditions can lead to cancellation of the permit and deportation.

Can I invoice foreign clients through a Brunei-registered company?

Yes. A Brunei private limited company may issue invoices to overseas clients for services provided. As Brunei levies no VAT or GST, cross-border invoicing is comparatively straightforward. However, you must ensure that income is properly declared to the Revenue Division and that corporate tax obligations at 18.5% on locally sourced profits are met (as of 2025). Maintain detailed records distinguishing income earned from international clients from that generated by Brunei-based clients, as the tax treatment may differ.

What happens to my business if my visa or work permit expires or is not renewed?

If your work permit lapses, you will no longer be legally entitled to conduct business activities within Brunei. Your company may remain on the register, but your personal authority to act as a director or manage operations from inside the country would be undermined. It is vital to begin renewal applications well ahead of the expiry date and to engage a local immigration adviser if any uncertainty arises. In the interim period, a locally resident co-director can help sustain continuity of operations.

Is there a minimum investment requirement for expats setting up a company in Brunei?

The minimum capital required for company registration in Brunei is BND 1, which may vary depending on the business structure selected (as of 2025). In practice, however, investment promotion bodies and sector regulators may set higher de facto thresholds for particular industries. Always verify the requirements specific to your sector with the BEDB or the relevant ministry before making any financial commitments.

Do I need a local partner or Brunei national shareholder to start a business?

A local partner is not universally required to establish a business in Brunei; however, foreign investors must involve a local partner for certain government contracts and oil and gas projects. For a private limited company in most commercial sectors, full foreign ownership is generally achievable. That said, you must still satisfy the requirement that at least half of the company’s board of directors are Brunei citizens or permanent residents.

Does Brunei have any tax treaties that benefit expat business owners?

Brunei has concluded a number of income tax treaties designed to prevent double taxation. These agreements can reduce the withholding tax applicable to royalties and other cross-border payments. The Revenue Division under the Ministry of Finance and Economy maintains the authoritative register of Brunei’s double tax agreements. If you regularly receive royalties, dividends, or service income across national borders, engage a tax adviser with expertise in both Brunei’s treaty network and the tax rules of your home country.

Are there co-working spaces or startup communities for expat entrepreneurs in Brunei?

Brunei has a modest but developing entrepreneurial ecosystem, with co-working spaces available in the capital, Bandar Seri Begawan. Programmes under the Brunei Vision 2035 initiative have sought to cultivate the ICT and startup sectors. The BEDB, which champions five priority business areas including ICT, can connect founders with relevant industry contacts. While the expat business community is smaller than that found in Singapore or Kuala Lumpur, it tends to be welcoming and can offer practical insight into navigating local systems.

What is the easiest route into legal self-employment for an expat in Brunei?

The most straightforward legal route for a foreign national is to incorporate a private limited company (Sdn Bhd) through the ROCBN’s businessBN portal, appoint at least one Brunei-resident director, and then apply for the appropriate work permit to authorise you to operate within the company. Engaging a local corporate services provider or law firm from the outset helps streamline name approval, document preparation, and ongoing compliance obligations. Budget for professional fees and allow several weeks for the complete process, particularly given the time required for work permit approvals.