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TYPES
OF COMPANIES
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| Forms
of Business Operations |
| Business
enterprise in Brunei may be organised in the form
of:- |
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Sole
proprietorship |
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Partnership |
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Private
Company (Sendirian Berhad) |
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Public
Company (Berhad) |
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Branch
of Foreign Company |
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Generally
speaking, there is no restriction on the
types of businesses that may be set up.
However, businesses where the public interest
is directly affected such as banks, finance
companies, motor vehicle insurers, money
lenders and travel agents must obtain
special licences from the appropriate
Government agency. Lawyers, auditors,
doctors and other professionals also have
to be approved by the Government.
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Sole
Proprietorship and Partnership
Sole proprietorship and partnership are
not subject to tax in Brunei and must be
registered with the Registrar of Business
Names unless the full name of all individuals
concerned is used for the business.
Registration
approval is generally not granted to foreigners.
A partnership may consist of individuals,
local companies and branches of foreign
companies, but the number of partners
must not exceed twenty.
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Companies
The following are the various types of companies
that can be registered under the Companies
Act, 1956 (Laws of Brunei, Chapter 39):- |
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(i)
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A company limited by shares. |
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(ii)
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A company limited by guarantee and not having
a share capital. |
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(iii)
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A
company limited by guarantee and having
share capital. |
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(iv)
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An
unlimited company having a share capital. |
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above companies may be either private (Sendirian
Berhad) or public limited (Berhad). The
private company limits its maximum number
of members to fifty, restricts share transfers,
and prohibits public invitation for subscription
to its shares or debentures. All companies
are required to have a minimum of two directors,
and at least half the number of directors
must be citizen of Brunei Darussalam. Corporate
bodies can act as directors unless specifically
prohibited by the Articles of Association.
Public
companies which established must have
at least seven shareholders and private
companies at least two. Shareholders need
to be Brunei Citizens or residents, and
a parent company can hold shares in its
subsidiary company.
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Branch
of Foreign Company.
Foreign companies which establish a place of business
in Brunei and do not incorporate a local company
are requires to register as a branch of foreign
company. Branches of foreign companies have the
same powers and authority as Brunei Companies. |
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