Brunei, formerly Brunei Darussalam, is a Southeast Asian republic situated on the north coast of the island of Borneo. Apart from the South China Sea, it is entirely bordered by the Malaysian state of Sarawak. It is divided into two pieces by the Limbang district of Sarawak. Brunei is the sole sovereign state on Borneo; the rest of the island is shared with Malaysia and Indonesia. Its population was 460,345 as of 2020, with around 100,000 living in the capital and main city, Bandar Seri Begawan. The government is an absolute monarchy headed by its Sultan, known as the Yang di-Pertuan, and follows a mix of English common law, Sharia law, and typical Islamic norms.
Sultan Bolkiah (reigned 1485–1528) is said to have ruled over much of Borneo during the height of the Bruneian Empire, encompassing modern-day Sarawak and Sabah, as well as the Sulu Archipelago off the northeast tip of Borneo and the islands off the northwest tip of Borneo. They also claimed dominion over Seludong (or the Kingdom of Maynila, where the modern-day Philippine capital Manila presently lies), however, Southeast Asian experts think this relates to the Indonesian town Mount Selurong. Brunei was visited by Spain's Magellan Expedition in 1521 and fought against Spain in the Castilian War in 1578.
The Bruneian Empire started to crumble in the nineteenth century. The Sultanate gave Sarawak (Kuching) to James Brooke, who became the White Rajah, and Sabah to the British North Borneo Chartered Company. Brunei became a British protectorate in 1888, and in 1906, a British resident was appointed as colonial manager. Following the Japanese occupation during World War II, a new constitution was drafted in 1959. With British assistance, a brief armed insurrection against the monarchy was put down in 1962.
Brunei has been ruled by Sultan Hassanal Bolkiah since 1967 and obtained independence as a British protectorate on January 1, 1984. The nation is governed by an authoritarian absolute monarchy. Brunei became an industrialized nation as a result of economic development in the 1990s and 2000s, with GDP expanding 56 percent from 1999 to 2008. It has amassed riches as a result of its large petroleum and natural gas resources. Brunei is regarded as a developed country and has the second-highest Human Development Index among Southeast Asian countries, behind Singapore. Brunei is rated fifth in the world in terms of GDP per capita at purchasing power parity, according to the International Monetary Fund (IMF). In 2011, the IMF assessed that Brunei was one of two nations (the other being Libya) with a public debt equal to 0% of national GDP.
Termination can occur in a variety of circumstances, the most straightforward being the cessation of service. If the employment contract specifies an end or completion date for the job, service will terminate on that date. Employers and workers both have the ability to initiate termination with the necessary notice.
For employees with less than 26 weeks of service, the notice period is one day; for employees with 26 weeks to two years of service, the notice period is one week; for employees with two to five years of service, the notice period is two weeks; and for employees with more than five years of service, the notice period is four weeks.
The qualifying period is equal to the duration of the employee's probationary period, which cannot exceed 90 consecutive days.
If an employee is dismissed for misconduct or his service is terminated by his employer, the total salary owed to him must be paid on his last day of employment. If this is not possible, it must be paid within three working days of the date of dismissal or termination.
Employees who work non-shift typically work eight-hour days and up to 44 hours per week. Workers on shifts should not work more than 44 hours per week on average over three consecutive weeks, and workdays should not exceed 12 hours. In no circumstance may a shift worker work more than 12 hours per day. All hours worked in excess of those specified in the employment contract constitute overtime.
Anything beyond this time limit is considered overtime and is compensated at 150 percent of standard pay. An employee shall not be permitted to work more than 72 hours of overtime per month.
An employee may not work more than 12 hours per day unless the job is vital to life or security, critical to the business, or requires extended interruption.
There is no national minimum wage in the country, which means that the employer and employee must agree on an amount during the hiring process. This sum should be stipulated in the employment contract.
The 2009 Employment Order does not specify any mandatory perks or bonuses, but businesses are free to decide on these items at their discretion. They may provide services such as accommodation or meals. The decision to deduct expenses from employees' paychecks is also up to the employer.
Companies in Brunei are subject to a corporate tax rate of 20 percent.
Individuals in Brunei are not imposed any income tax.
Brunei does not impose a value-added tax (VAT) or a goods and sales tax (GST).
Many nations, although not all, need a visa to enter Brunei. Brunei's visa policy, like others in the world, includes a list of visa-exempt nations whose people may visit Brunei for up to 90 days. The amount of time you may stay in Brunei, however, is determined by your place of origin. Citizens of the European Union, for example, may stay in Brunei for up to 90 days, however Indonesians can only stay for 14 days.
At the same time, Brunei's visa policy includes a list of seven countries whose residents may receive a visa on arrival valid for 14 days (2 weeks) or 30 days, depending on the country. This visa on arrival, however, is only available if certain nations enter Brunei via its International Airport. Any other entry point needs a consular visa.
Whether you want to discover if you need a visa, you may look at Brunei's visa rules on their official website.
If you want a visa for Brunei, you must travel to the closest embassy. But first, be certain that you satisfy all of the prerequisites for a successful application procedure. You may read about the criteria on various websites, but we recommend that you contact the embassy for further information and guidance. The information available on the internet is huge, yet it is not necessarily accurate. One thing is certain: you'll need a passport with at least six blank pages and validity for at least six months from the date of your arrival in Brunei.
Employment contracts are necessary under Brunei's labor regulations in order to hire someone. They should contain important information such as the nature of the job, the length of the contract, the termination process, and the remuneration.
There is no set length for assignments. This is usually indicated in the employment contract for fixed-term employments.
Brunei dollar (BND)
The first step in establishing a subsidiary is selecting what sort of firm you want to create. Brunei company law specifies a number of business kinds that overseas employers may establish. These are some examples:
Private. The Companies Act oversees this sort of corporation, and the power to transfer shares is restricted. The general public does not have access to equity, and the corporation has a maximum of 50 stockholders.
Public. A public business requires a minimum of seven shareholders, and shares is accessible to the entire public.
Partnership. This agreement entails collaborating with one or more local businesses to increase commercial opportunities. A partnership is not taxed, although overseas persons may only register them under limited conditions.
Free Zone. For repackaging or modest manufacturing activities, you may establish a limited liability business in a free-trade zone and avoid corporation taxes for 15 years.
Once you've decided on the sort of subsidiary you want to create, you must register your company name with the Registry of Companies and Business Names. You'll also need to submit the Memorandum and Articles of Association, which is a long legal document. This document serves as a contract for the business type you choose and outlines the rules for your subsidiary. Before you can properly incorporate, you must have at least two current shareholders when you register your organization.
After you've declared your firm, you'll need to choose a robust board of directors to oversee the subsidiary. This phase is identifying who on your board has signing authority.
Brunei's subsidiary laws differ depending on the kind of organization and are explicitly laid out in the Memorandum and Articles of Association. Both private and public firms need board members, with at least half of them being Bruneians or permanent residents. Both forms need just $1 in share capital and are subject to corporation taxes of 18.5 percent.
All shareholders in public companies must be citizens. The shareholders must submit annual financial statements to an auditor, who must file them with the Ministry of Finance and Economy. A comprehensive board of directors is required for both private and public companies.
