ABOUT BRUNEI

 Amongst all the countries in Southeast Asia, Brunei, officially Brunei Darussalam, is a sovereign state located on the northern coast of the island of Borneo. Apart from its coastline with the South China Sea, it is completely surrounded by the Malaysian state of Sarawak. Brunei is known for its serene environment, rich cultural heritage as an ancient Sultanate, and its substantial oil and natural gas reserves, which underpin its high standard of living. The capital of Brunei is Bandar Seri Begawan, which is its largest city and serves as the country’s main economic, cultural, and political center. According to the World Bank, Brunei is classified as a High-Income Economy, predominantly driven by its vast hydrocarbon wealth. The currency of Brunei is the Brunei Dollar (BND), which is pegged to the Singapore Dollar (1 BND = 1 SGD). As of today’s exchange rates (June 2025), 1 BND is approximately 61.50 Indian Rupees. The population of Brunei is relatively small, estimated at approximately 0.45 million (450,000) in 2024. Its only land neighbor is Malaysia, specifically the state of Sarawak, which completely surrounds Brunei except for its coastline. It shares maritime borders with Malaysia and Vietnam in the South China Sea. The official language of the country is Malay. English is widely understood and commonly used in business, education, and government, reflecting its past as a British protectorate. Islam (Sunni) is the official religion, and its principles are deeply embedded in the country’s legal and social fabric. Brunei has one main international airport, Brunei International Airport (BWN) in Bandar Seri Begawan, which serves as the primary air gateway. Its main commercial seaport is Muara Port, crucial for its international trade and logistics, especially for its oil and gas exports.

The standard corporate income tax rate in Brunei is 18.5%. Brunei actively seeks to attract foreign direct investment, especially in non-oil and gas sectors, to diversify its economy. The government offers various investment incentives under the Income Tax Act (Investment Incentives) Order, which can include pioneer status, investment tax allowances, and exemptions for specific activities, particularly in strategic sectors like the halal industry, tourism, and technology. The Ministry of Finance and Economy and the Brunei Darussalam Foreign Direct Investment and Downstream Industry Steering Committee play key roles in facilitating and promoting foreign investment. Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a Rental property for your office.

Establishing a business in Brunei has become more straightforward as the government continues its efforts to improve the ease of doing business and attract foreign direct investment. The Ministry of Finance and Economy, along with other agencies, aims to simplify administrative procedures and create a more business-friendly environment. A foreign investor planning to start a business in Brunei can typically form a Private Limited Company (Sdn Bhd), which is the most common and flexible structure for foreign investors, or establish a Branch Office or Representative Office. In many sectors, 100% foreign ownership is allowed, particularly for investments that align with the country’s economic diversification goals. Brunei’s legal system is based on English common law, providing a predictable framework for businesses.

In case an investor is planning to establish an LLC or a corporate business setup in Brunei, Opesh Group will be helping you in taking the right decision for setting up your business in Brunei and we will also guide you about how to follow the procedure while formulating your company in Brunei.

Types of Business which can be started in Brunei:

• Oil & Gas Downstream and Support Services: While an established producer, opportunities exist in petrochemicals, refining, and specialized services supporting the existing industry.
• Halal Industry: Leveraging its Islamic identity, significant potential lies in halal food production, pharmaceuticals, cosmetics, logistics, and certification for regional and global markets.
• Tourism & Hospitality: Developing eco-tourism, cultural tourism, and niche markets like MICE (Meetings, Incentives, Conferences, and Exhibitions) offers growth opportunities.
• Information & Communication Technologies (ICT) & Digital Services: Brunei is investing in digital infrastructure, creating opportunities in software development, cybersecurity, e-commerce, and IT outsourcing.
• Financial Services: Opportunities in Islamic finance, wealth management, and specialized financial products.
• Food Processing & Aquaculture: Investing in modern food production, value-added processing, and sustainable aquaculture to enhance food security and exports.
• Logistics & Connectivity: Utilizing Muara Port as a regional hub for transshipment, warehousing, and integrated logistics services.

Advantages of Starting Business in Brunei:

• Political Stability: A stable and peaceful political environment under a long-reigning Sultanate.
• High Income Economy: Offers a market with high purchasing power due to significant oil and gas wealth.
• Strategic Location: Proximity to growth markets in Southeast Asia and access to the South China Sea.
• Favorable Tax Regime: Low corporate income tax rate and no personal income tax.
• Support for Diversification: Strong government commitment and incentives for non-oil and gas sectors.
• Educated Workforce: High literacy rates and a focus on skills development.
• Robust Infrastructure: Well-developed infrastructure, including ports, airports, and telecommunications.

Business Opportunities for Indians in Brunei: There are excellent business opportunities in Brunei for new investors who are planning to start their business abroad. Brunei’s drive to diversify its economy away from full reliance on oil and gas opens doors for Indian investors, particularly in sectors where India has established expertise. Indian companies can explore opportunities in pharmaceuticals (supply of generic drugs, manufacturing partnerships), IT services (software solutions, digital infrastructure development), agriculture (modern farming techniques, food processing for halal markets), renewable energy, and niche manufacturing. The growing trade relations and efforts to foster bilateral economic ties also create avenues for joint ventures and market entry for Indian businesses looking for a gateway into Southeast Asia’s niche markets.

Imports & Exports: Many goods are imported and exported from Brunei. Imports and exports business is an ever-growing business in any country; however, you need to do proper R&D before investing in that product which you can import or export. You need to check whether that product is suitable for your target market and how much revenue you will be able to generate from that market.

Major items which are exported from Brunei:

• Crude petroleum
• Liquefied natural gas (LNG)
• Refined petroleum products
• Chemicals (e.g., methanol)
• Organic chemicals

Major items which are imported in Brunei:

• Machinery and transport equipment
• Manufactured goods
• Foodstuffs
• Chemical products
• Pharmaceuticals
• Vehicles

Major items traded between Brunei and India (as of 2023-2025 data):

• Exports from Brunei to India: Crude petroleum, Liquefied Natural Gas (LNG).
• Imports in Brunei from India: Pharmaceutical products, machinery, textiles, meat (halal), basmati rice, chemicals, and various consumer goods.

Manufacturing: Manufacturing in Brunei is heavily concentrated around its hydrocarbon industry, including oil refining, petrochemical production, and LNG liquefaction. As part of its diversification strategy, there’s a growing emphasis on developing the halal food manufacturing sector, light manufacturing, and value-added processing of local resources.

Mining: The mining industry in Brunei is almost exclusively dominated by the extraction of crude oil and natural gas, both offshore and onshore. Brunei is a significant global producer and exporter of LNG. There are no other major mining activities for diverse mineral resources.

Major Indian companies which are currently working in Brunei: Due to Brunei’s relatively small market size and its primary focus on the oil and gas sector, there are fewer large-scale direct investments from major Indian industrial or financial giants. However, there is growing trade and increasing interest.

• Pharmaceutical Companies: Several Indian pharmaceutical companies have a strong presence in the Brunei market through exports and distribution agreements.

• IT Services: Indian IT firms may be involved in providing software solutions or consultancy services to Bruneian companies and government entities, particularly in digitalization efforts.

• Trading Houses: Various Indian trading companies are involved in the import of goods from India to Brunei, including food products, textiles, and other consumer items.

• Potential for Future Collaboration: Sectors like renewable energy, infrastructure development, and specialized manufacturing offer potential for future Indian investments and partnerships.

• GDP = $16.5 billion (nominal, 2024 est.)

• GDP Growth = 2.5% (2024 est.), 3.0% (2025 forecast by IMF)

• Ease of doing business rank = The World Bank’s ‘Doing Business’ report has been discontinued. However, Brunei has made significant efforts and improvements in its business environment and regulatory reforms in recent years to attract foreign investment and diversify its economy.

• GDP per Capita = $36,000 (nominal, 2024 est.)

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