How to Register a Business in the US from Brunei

Step 1: Benefits of starting your US business from Brunei

Starting a US business from Brunei offers a plethora of advantages that can significantly contribute to the success and growth of your enterprise. One of the foremost benefits is the strong bilateral relations between Brunei and the United States, making it easier for entrepreneurs to access US markets, resources, and expertise. By leveraging these well-established diplomatic ties, you can navigate the complexities of international trade more efficiently and build a network of valuable contacts in both countries.

Furthermore, Brunei's business-friendly environment, characterized by its low tax regime and strategic location in Southeast Asia, provides an optimal base for launching a US business. Entrepreneurs can utilize these financial and logistical benefits to reduce operational costs and enhance profitability. Additionally, the robust digital infrastructure in Brunei allows for seamless communication and management of your US enterprise, fostering a smooth and productive business operation. These factors collectively make Brunei an excellent starting point for entrepreneurs aiming to establish a strong presence in the US market.

Step 2: How to start your US business from Brunei

Starting a US business from Brunei involves several steps and careful planning. One of the first actions to take is to choose a suitable business structure, such as a Limited Liability Company (LLC) or a Corporation. This decision will affect your tax obligations, liability, and overall operations. Once the structure is selected, the next step is to register your business with the appropriate US state authorities. Most foreign entrepreneurs prefer states like Delaware or Nevada due to their business-friendly laws. It's essential to have a unique business name and to ensure it complies with state naming requirements.

Additionally, you must obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This number is crucial for tax purposes and for opening a US bank account. Speaking of banking, establishing a US-based bank account can facilitate smoother financial transactions and provide a professional touch to your business operations. Lastly, consider consulting with a local attorney or business advisor who specializes in US market entry to ensure all legal and regulatory requirements are met. This will help streamline the process and mitigate any potential challenges.

Step 3: Opening a Business Bank Account

A business bank account is a separate account that is used exclusively for business transactions. But why is it important to open a business bank account?

Keeping your personal and business finances separate is crucial. A dedicated business bank account allows you to do just that, making it much easier to track your business’s income and expenses. This clear separation translates to simpler tax reporting come tax season.

But the benefits go beyond bookkeeping. Having a separate account can provide legal protection. It establishes your business as a distinct entity from yourself. In the unfortunate event of a lawsuit or bankruptcy, this separation can help shield your personal assets from business liabilities.

Furthermore, a business bank account can boost your credibility and project professionalism.

It demonstrates to clients and vendors that you take your business seriously and are committed to maintaining accurate financial records. This can be especially important in establishing trust with potential partners.

Finally, a business bank account is essential for accepting payments, even if you utilize a merchant account. Whether you use doola or another service, funneling those customer funds into a dedicated business account is necessary.

doola partners with banks that allow you to open a bank account remotely from anywhere in the world, like Mercury. Shop around and compare different banks’ fees and services.

Look for a bank that offers the features you need, such as online banking, mobile banking, or overdraft protection.

You may also want to consider working with a bank that specializes in small business banking.

Step 4: Understanding Your Compliance Requirements in Brunei

Understanding Compliance Requirements for Running a US Business in Brunei

Brunei offers an attractive environment for foreign investors due to its stable economy and strategic location in Southeast Asia. However, running a US business in Brunei requires careful attention to several compliance considerations. This article outlines the key aspects you need to be aware of.

Legal Structure and Registration

Foreign businesses in Brunei typically operate through a locally incorporated company. The following steps are essential:

1. Choose a legal structure (e.g., limited liability company, partnership)
2. Register the business with the Brunei Registry of Companies and Business Names
3. Obtain necessary licenses and permits

Investment Restrictions

While Brunei encourages foreign investment, certain sectors may have ownership limitations or require special approvals. Industries like energy, telecommunications, and media may have specific restrictions.

• Review the Brunei Investment Agency guidelines
• Consult with local legal advisors to understand sector-specific regulations

Taxation

Understanding the tax landscape is crucial for compliance:

1. Corporate tax rate: 18.5% for resident companies
2. No personal income tax but social security contributions (TAP and SCP) are mandatory
3. Potential eligibility for tax incentives under the Investment Incentives Order

Employment Laws

Adhering to Brunei's employment laws ensures smooth operations:

• Compliance with the Employment Order 2009
• Understanding mandatory benefits like annual leave, sick leave, and maternity leave
• Adherence to minimum wage regulations

Local Content Requirements

Certain sectors may require a percentage of local employees or suppliers. Assess these requirements early to ensure compliance and promote local engagement.

Cultural and Business Practices

Familiarize yourself with Brunei's cultural and business norms:

• Respect local customs and traditions
• Understand the role of Islam in business etiquette and practices
• Build strong relationships with local partners and government officials

By considering these compliance aspects, US businesses can navigate the regulatory landscape in Brunei effectively, ensuring a successful and legally compliant operation.

doola offers a Total Compliance package, including bookkeeping services, to help you stay on top of your compliance requirements. This ensures your business operates smoothly and adheres to all legal and regulatory standards.

Step 5: Understanding Your Tax Obligations in Brunei

Understanding Tax Obligations for Running a US Business in Brunei

When running a US business in Brunei, it's essential to understand the various tax obligations that may apply. This helps ensure compliance with local laws and avoids penalties. Below are key considerations to keep in mind:

1. Corporate Tax

Brunei offers a relatively low corporate tax rate compared to many countries, which can be advantageous for businesses. The standard corporate tax rate in Brunei is 18.5%. Special rates may apply to certain sectors or industries.

2. Withholding Tax

In Brunei, withholding tax may be applied to certain types of income paid to non-residents. This includes:

• Interest
• Royalties
• Service Fees

The rate of withholding tax can vary, so it's important to check current rates and conditions.

3. Sales Tax and GST

Brunei does not currently impose a Goods and Services Tax (GST) or Value-Added Tax (VAT). This can simplify the tax management process for businesses operating in the country.

4. Personal Income Tax

Brunei is unique in that it does not levy personal income tax on both residents and non-residents. This can be a significant benefit for expatriate employees of US businesses operating in Brunei.

5. Double Taxation Agreements

Brunei has entered into Double Taxation Agreements (DTAs) with several countries. These agreements help to avoid the double taxation of income earned in one country by residents of another. It's important to verify if the US has a DTA with Brunei and understand its provisions.

6. Compliance and Reporting

Maintaining compliance with Brunei's tax regulations involves regular reporting and documentation. US businesses must ensure they are up-to-date with filing requirements and deadlines to avoid penalties.

7. Professional Advice

Given the complexities of international tax law, consulting with a professional familiar with Brunei's tax system and its implications for US businesses is advisable. This helps to ensure accurate tax planning and compliance.

Understanding these key considerations can help US businesses navigate the tax landscape in Brunei effectively. Proper planning and compliance can contribute to the success and growth of business operations in the region.

It’s a good idea to consult with a tax professional or an accountant (or to hire these roles in-house) to make sure you’re not missing anything.

doola's Total Compliance package can handle your tax filings for you, ensuring you remain compliant with federal, state, and local tax requirements.

Step 6: How doola Can Assist

doola simplifies the incorporation and setup process for your company, ensuring you’re ready to charge customers, hire your team, and raise funds as quickly as possible.

Fill out your company details in the doola form in less than 10 minutes. Then, we’ll incorporate your company in any of the 50 US states, get your IRS tax ID (EIN) for you, and file your 83(b) tax election if needed. 

doola can also help you open a bank account and start accepting payments even before the IRS assigns your tax ID.

doola founders also gain access to exclusive discounts at leading software partners, one-click onboarding with select partners, and free CPA consultations.

The doola Application

It takes less than 10 minutes to fill out the details of your new company. You’ll choose your company structure (C corporation, limited liability company) and pick a company name.

Our instant company name checker will let you know if it’s available before you submit your application. You’ll add an address and phone number and review and sign your EIN SS4 letter in one click.

Forming the Company

doola will review your application and file your formation documents in the state within one business day. doola charges $297 for our Starter Plan and your first year of registered agent services (a state compliance requirement), and $297 each year thereafter to maintain your registered agent. 

You can also opt for our Total Compliance plan.

Getting Your IRS Tax ID (EIN)

After your formation in the state is complete, doola will file for your company’s IRS tax ID. Founders who provide a US Social Security number, US address, and US phone are eligible for expedited processing. All other users will receive standard processing. 

For standard orders, doola will fax your form SS4 to the IRS and then call the IRS to retrieve the EIN for you to expedite the process if we can, using real-time IRS data to determine when your filing is likely to be available.

Filing Your 83(b) Tax Election

Many startup founders choose to file an 83(b) tax election to potentially save on future personal taxes. doola can file and mail your 83(b) tax election in one click for both US and non-US founders — no trip to the post office required.

We’ll file it using USPS Certified Mail with tracking, and you’ll get a copy of your signed 83(b) election and proof of filing in your Dashboard.

Partner Perks and Discounts

doola partners with a range of third-party tools to offer special pricing or access to founders. We offer discounts on engineering, tax and finance, compliance, and operations tools, including Amazon Web Services.

doola also partners with Mercury to provide faster, automatic onboarding using your doola company information so you can get ready to bank and fundraise even faster.

Founders may also access discounts on other doola products, including up to one year of free credits toward payment processing.

Read our guides for startup founders, or learn more about doola and how we can help you set up your new business quickly and easily.

Turn your entrepreneurship dream into reality today!

We do our best to provide accurate and up to date information, however the information provided here are just guidelines. Please speak with a tax and compliance professional in your country