Why Brunei and Labuan?
The answer is simply because we have presence in both jurisdictions. One focuses for domestic companies and the other on international setups. Brunei and Labuan are well positioned in the heart of South-east Asian nations and close proximity to some of the region’s premier financial centres. Our extensive knowledge of the business environment, the corporate regulations, the people and their customs, and the overall insights of the two jurisdictions gives us the ability to partake solid advice to facilitate your business needs.
We focus on the locality where we operate from.
Brunei Darussalam (4°30’N 114°40’E) and the island of Labuan (5°19’13.16”N 115°12’40.42”E) are situated in the Northwest coast of Borneo with both facing the South China Sea and the two are only separated by about 12nmi sea passage from each other.
Brunei is a high income nation where it is estimated about 95% of the country’s revenue derives from hydrocarbon resources. In recent years, Brunei took the initiative to diversify its economy by introducing reforms to its business regulations which have significantly reduced its corporate tax rate and provide ease of doing business to facilitate businesses and attract FDIs into the country.
Whereas Labuan was designated by the Malaysian Government as an international offshore financial centre and a duty free zone in 1990. The island rebranded itself as the regional’s premier International Business Financial Centre in 2010 and sees the growth in the financial related activities and services due to its dynamic business regulations rolled out specifically to complement cross-border businesses and investments. Labuan also serves as a hub to support the vicinity’s bustling oil and gas activities.
Both jurisdictions adopt strong regulatory regime with high commitment to international best standards on tax transparency practices, anti-money laundering and counter-terrorism financing activities.
The World Bank’s latest Doing Business 2017 ranks Malaysia and Brunei at 2nd and 4th spots respectively in the ASEAN’s grouping.
For these reasons, the jurisdictions are responsive to constant changes in market demands and able to create conducive environment for businesses be it cross-border or for local commercial activities. Click on the country’s factsheet for information on corporate regulations.
ASIAN | FOCUS
It is now all about doing business and creating wealth in Asia Pacific. So, the use of structures using tools with close connection to Asia may make more sense nowadays.
Brunei and Labuan are strategically located to serve the economies in the region. For this reason, prospect clients may find using a business entity using either Brunei or Labuan company, or both companies in their structure may be beneficial considering their central location in Asia, the jurisdictions’ tax incentives and the overall maintenance costs. Quite simply, a Brunei company may be set up to carry on business activities domestically or as a platform for international trade, with an 18.5% tax rate payable. Whereas a Labuan company may be incorporated to trade internationally with a 3% (or a flat rate of MYR20,000) tax payable or to hold investments outside of Malaysia with no tax at all. However, with careful planning, by utilising a Labuan company as a holding entity with Brunei company as an underlying operating entity may be useful for tax planning purposes. At HMR Konsultan we offer integrated corporate management services and can facilitate company set ups for you.
When there is a need to expand your business away from home, you will obviously look for a trusted partner who is reliable, a professional intermediary who has access to global specialist service providers and who can provide you with multi-jurisdictional solutions tailored specifically to meet your objectives. Our extensive networks and contacts in the region and beyond can respond to your needs for advice, whether for a basic company setup or a more complex structure in a ‘tax efficient’ jurisdiction.
Get to know your key Konsultan
Sukor Ashak is our Labuan office’s Managing Director. Having spent seven years working in one of the largest trust companies in Labuan and over ten years plying his...
Meet Belinda Yeo, our key Konsultan and manager of our Brunei office. She is very resourceful thanks to her valuable experience working for a number of years with an...
Khairul Khairuddin was instrumental behind the establishment of HMR Konsultan Brunei in 2014 while he was helming our Group’s parent company, HMR Trust...