Offshore Firms Bring In $5.22m To Brunei Coffers
By Sobrina Rosli

Bandar Seri Begawan - Offshore companies registered in Brunei bring in about $5.22 million every year to the sultanate's coffers in the form of licensing and registration fees, according to a provider of international corporate and trust services.

Ocra (Brunei) Limited said there are over 8,000 foreign firms, or so-called, Brunei International Business Companies, currently set up here by registering agents licensed by the Brunei International Financial Centre, bringing in national income yearly while benefiting local professional services.

The firms are charged by the government about $725.75 (US$500) in their first year of operations and then an annual fee of $580.60 (US$400). To date, there are around 10 registered agents who help such offshore firms set up in Brunei.

One of these agents is Ocra (Brunei) Limited, which provides a full set of corporate services for incorporation and administration of offshore and international companies.

"In one way it promotes Brunei, putting it on the map as a foreign destination where international companies or high network individuals can see Brunei as a tax haven," said Weui Chua, Ocra business development manager.

Brunei's time zone, he said, also attracts companies because it's the same as the growing economies of Taiwan, Hong Kong and China.

"Being tax free is a big advantage for businesses, while being widely known for its rich and stable economy as well as possessing a respectable, good routine financial record," he said.

With a zero-tax regime, the sultanate has become one of the fastest growing offshore destinations in Asia, also offering advantages such as client confidentiality laws and low tax system, according to Ocra Worldwide.

The company said offshore firms in Brunei do not pay income tax, capital gains tax, stamp duty or other direct tax. Ocra's Brunei clients include professional intermediaries, expatriates, entrepreneurs and high net worth individuals.

"Part of these company's investments here is that they would need to apply for professional services such as lawyers or auditors; this is more or less the only times the offshore company would do business with onshore ones," said Weui.

Ocra (Brunei) helps clients with the local registration procedures, company formation and company management accounting, corporate structuring in all major jurisdictions and provision of professional directors and nominee share holders.-- Courtesy of The Brunei Times

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