International Business Companies (IBCs):  Incorporation of IBCs are governed by International Business Company Order, 2000 ('IBCO') and are incorporated by Registered Agents and Licensed Trust Companies in Brunei. A Certificate of Due Diligence must be filed with the constituent documents which is also required at every annual renewal. IBCs operate tax free and they may be limited by shares, limited by guarantee, limited by shares and guarantee, of limited duration, Dedicated Cell Companies, created by conversion, re-domiciled or discontinued in Brunei. An IB can be registered within 1-2 working days. There are now more than 8500 IBCs registered in Brunei Darussalam of which most are conducting significant business.

International Limited Partnerships (ILPs): An ILP consists of one or more general partners (of which one must be a trust company or subsidiary thereof, an IBC or another ILP) and any number of limited partners.  An ILP may be formed for any lawful purpose, undertaken in or from within Brunei Darussalam or elsewhere.  It does not carry on business with any person resident in Brunei Darussalam, and prospectus provisions may apply to offers of securities.

Registered Agents and Licensed Trustees: This Order provides for the licensing, regulation and control of international business services to companies licensed under that Order. All establishment and compliance documents (including Certificates of Due Diligence) of International Business are filed by these licensed trustees. There are now 11 Registered Agents and Licensed Trust Companies registered under the Registered Agents and Licensed Trusteed Order,2000 ('RATLO'). 

Mutual Funds:  The types of mutual funds offered are Public Funds, Private Funds, Professional Funds and Islamic Funds. Mutual funds may be in the form of a body corporate, a unit trust, a limited partnership or other arrangement whereby participants (investors) may benefit from the pooling of funds, diversification and the spreading of risk.  All domestic and international funds must be licensed and so are their promoters, managers and custodians.

Securities: The Securities Order, 2001 ('SO') provides a framework for the establishment of a financial exchange in Brunei Darussalam and for the licensing of investment advisers and dealers. Securities are very widely defined under this Order and are intended to include all investment and investment product. Under this Order, investment advisers are allowed to conduct asset or fund management, fund distribution and corporate financing services.

* International Banking:  under this Order, banks may be established as separate entities by registration as an International Business Company under the IBCO or alternatively, register a branch of an established institution as a Foreign International Company, again under IBCO.  The current level of minimum capitalisation is USD 5 million. The classes of licence offered are Full International Banking license, International Investment Banking license, International Islamic Banking license and Restricted International Banking license. International Islamic banking business is banking business whose aims and operations do not involve any element that is not approved by the Islamic Religion and there is a requirement for the appointment of a Syariah Council. International banks will pay no tax and neither will their staff, customers or products.

* International Insurance and Takaful: Under the Order, there are 7 types of licenses available, which include general insurance, life insurance, life and general insurance and captive insurance businesses and International Insurance Manager, International Underwriting Manager and International Insurance Broker.  Applicant can be a company including an established foreign or domestic insurance company or licensed registered agent and trust company in Brunei acting as representative for the purpose of license application.

Special provision is made for Financial Unit-linked and Reinsurance (access to domestic market).  All long term products are protected against creditors in the absence of fraud and the concepts of insurable interest and ability of a beneficiary to enforce a contract enjoy constructive modification.

International Trusts (IT): Under the ITO, an International Trust must be in writing, settled by a non-resident of Brunei, declared in its terms to be an international trusts (on creation or migration to Brunei), and at least one trustee must be a licensed under RATLO or an authorised wholly-owned subsidiary of a licensee.  The ITO is being used increasingly for both Islamic and conventional planning.

 

*  International Banking and International Insurance & Takaful activities are licensed and supervised by the Financial Institutions Division.