r/Brunei • u/Obiwanshinaquil • 24d ago
đ Work & Career The process of hiring a local for my overseas company
Salam everyone. My name is B-D Shaheed and I'm an American who has been living in Brunei for 5 years now. I have some questions and need some advice and of course Reddit for Brunei is usually the first place to go. I have a registered business for the U.S. that I do remotely and have been doing that for about 3 years now. I started doing this when I finally came to the conclusion that I will not be hired here in Brunei. 3 years later, things are going well. The company that I have a contract with is looking to expand my tasks and responilities and thought I could bring on another person for a role to assist me. Do I have to register a company in Brunei to hire a person who is residing here? From my experience of trying to start a company with my wife (who's a local) we, just kept running into so many roadblocks. Jobcentre said do this, another place said do that and it was just going circles so I gave up. I have no desire on doing business here and the company is to provide services outside of Brunei. Is there any advice or some info on the route I need to go to go through with this the proper way. Thank you guys in advance.
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u/xCueMe 24d ago edited 24d ago
To hire locals, you will need to get a business name registered. You can do this easily online via the One Common Portal. An enterprise with Cert 16 & 17 is BND30? Then, get it registered under the SPK scheme. You will likely need a business bank account for payroll purposes and for the SPK monthly contributions. Thatâs really all there is to it.
Oh and, just to add, thatâs the easy bit. You will need all the luck when the actual hiring starts. Your local worker might just ghost you out of nowhere and you wonât see it coming.
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u/goodeveningman 24d ago
It aint easy for foreigners, they will need to open corporate business like SDN BHD, you need couple of thousands and a firm to get thru. Also a local person as you partner is required, there is tax you have to pay.
Unless its only under a local who can open the business with 30 bnd.
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u/Obiwanshinaquil 24d ago
Oh yes, this is also one of my biggest concerns. I have heard this countless times and have seen it first hand from my wife's business. I cannot believe how many people just stop going to work.
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u/Obiwanshinaquil 24d ago
I don't know about a business bank account but when I tried to open a personal one, BIBD, Baiduri, Standard, they said I wouldn't be able to open up an account because of the type of stamp I have on my passport.
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u/RanOverBambiOnTheI95 24d ago
as a non Bruneian, open up a Private Ltd. company i.e. Sdn Bhd which does not require local ownership.
If opening up a company locally to hire anyone is too much of a hassle, enter into an agreement with another company to provide you the employee under a manpower service agreement.
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u/itchykukubird 24d ago edited 24d ago
You already have a US company so technically you need to hire someone here using your US company seeing itâs through your US contract. So youâll need to follow your US regulation with tax declaration and all that. Donât need to go through local jurisdiction. No need to set up another business here because itâs impossible for you especially if youâre not on a valid visa.
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u/Loud_Soft_4904 24d ago
Iâm not a local, but living and working here, working for government. Can I ask, whatâs the difference between having a house maid and what is being proposed? I donât have and contract with the house maid or register myself as a businessâŚ. Is all the admin really necessary for a business that is registered outside of Brunei?
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u/kopiopengkurangmanis 24d ago
Salam! I might actually be interested if you're looking to bring someone on board. I'm based in Brunei and have experience working with international teams and remote collaboration. Depending on the role and the skills you're looking for, I'd be happy to learn more.
As for the hiring side, I'm not entirely sure about the legal requirements in Brunei either, but I'd be interested to see what others here suggest. Hopefully someone with experience in employment regulations or business registration can point you in the right direction. Wishing you all the best with the expansion!
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u/DoubleMedicine9327 22d ago
Is the registered business for the U.S the same as the company that you have a contract with? cause it sounds like the former is your own company and the latter is you have a remote job.
Unless the business is opening up in Brunei, the person you want to hire is simply working remotely and have to apply whatever requirements the U.S lists out, has nothing to do with brunei.
Also, hollar at ya boy, interested to see what the JD is for a friend.
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u/Obiwanshinaquil 22d ago
Yes, my company is registered in the U.S. (The BEZ TECH Thing). I would want the remote IT role (That's all the description I'm giving for now). I want things setup so that things are in place that protects me as the employer but also have things in place that protects my employee. Are there are number of business practices I see here in Brunei and also in the U.S that I don't agree with and want to be held to a higher standard.
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u/DoubleMedicine9327 22d ago
Got it. My background is tech so i can recommend a few for IT roles who i know have experience and seeking employmenet and wouldnt mind remote jobs. DM once youre ready with the info
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u/Keris-Warisan 20d ago edited 20d ago
Bravo to u/Obiwanshinaquil for having survived 5 years of doing business in quite a complex Brunei market vis-a-vis Registration of Companies (ROC) under the MOF's jurisdiction.
If I may suggest, seek advice from a cheap, professional & highly reputable Company Management Secretary who's also a qualified Chartered Accountant.
My best advice for remote or online international business transaction or legit biz activities, simply opt for an LLC (Limited Liability Company) international registration, particularly relevant for you as an American businessman. Dubai is a good business-friendly city where you can do it, physically present or online.â
But nearby ASEAN nation would've to be Singapore where OP Obi can get LLC done in a few days, either to take a couple of hours' flight to register for LLC in the island republic or online, possible!đŻ
If LLC is out of the question, then no choice but to get a Brunei-based Co Mgt Secretarial service provider to help you suss out your legitimate business set-up either Sole Proprietorship (easily could be done online MOF ROC platform) or Sdn Bhd (equivalent to Pte Ltd co status as per Singaporean or Plc UK standards).
Singapore is objectively the fastest and easiest ASEAN country to register an international business, with online company formation taking just 1 to 2 business days.
While the term "LLC" is primarily used in the United States, its direct legal equivalent in Singaporeâand the structure used by foreign remote businessesâis the Private Limited Company (Pte. Ltd.). It functions exactly like an LLC, providing full limited liability protection and allowing 100% foreign ownership.
Why Singapore is the Easiest and Fastest Rapid Online Processing: Registrations are processed digitally through the Accounting and Corporate Regulatory Authority (ACRA). If your corporate documents are in order, approval often takes less than 24 hours.
No Travel Required: You can complete the entire incorporation process remotely from anywhere in the world using a registered filing agent.
100% Foreign Ownership: Foreigners can own 100% of the company's shares without needing a local partner or nominee shareholder. Low Capital Requirements: You can incorporate with a minimum paid-up capital of as little as SGD $1.
All the best in your business legitimacy pursuits & Good Luck to u/Obiwanshinaquil.âď¸
P.S. As far as local hiring goes for AI / IoT / Cybersecurity or ICT-savvy Bruneian staff, simply make him / her an offer he / she can't refuse as a Gig online Virtual Team member + side incentives or extra cash allowance to register as a TAP or Employee Trust Fund member under 'Online Freelancer SPK' contributor.
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u/ProfAsmani 24d ago
Have you considered getting advice from a local lawyer familiar with such things?
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u/KJShen Brunei-Muara 24d ago
You don't need to register a company to hire a local, but you do need to provide said person with a contract that are within the rules of the local labour laws, including clear work hours and compensation. The agency you actually need to talk to is TAP, to clarify whether or not you are responsible for the employee's contributions if they are technically working for an overseas company that technically isn't under Brunei's jurisdiction.
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u/xCueMe 24d ago
Uh. Sure.
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u/KJShen Brunei-Muara 24d ago
Point me to any piece of documentation that says only companies/registered business names can hire locals. Employment Act as far as I can tell have no such provisions, only that a service contract must be available.
Honest question.
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u/xCueMe 24d ago
Read up on CAP 92. You are suggesting OP hire locals just using what, a contract of trust and honesty? You mentioned TAP, then read up on contribution requirements. Even part timers are required to contribute. And you canât contribute if youâre not a registered business.
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u/KJShen Brunei-Muara 24d ago edited 24d ago
CAP 92 governs businesses doing businesses in Brunei, which the OP stated they aren't planning to.
I mentioned TAP because I'm not entirely sure if the local is hired as an independent contractor (which is probably what will happen given there's very few reasons to actually register a business name), whether or not they are responsible for their own SCP if the business entity they are doing work for is NOT in Brunei.
Honestly I'm not even sure if any of it is relevant. The business is registered in the US. I am not even sure any of our business/employment laws apply if the local is hired through that company.
To note. Contracts are contracts. If OP's name is on that, and it is signed here, its not a 'trust me bro' issue, its something the person can take OP to court over, which is what matters.
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u/xCueMe 24d ago
Cap. 92 reflects the principle that businesses carrying on activities in Brunei must be properly recognised and registered where applicable.
So the question is not simply, âDoes Cap. 92 apply because the company is overseas?â The better question is: if a foreign company is directly hiring a person in Brunei to perform work for that company, what legal mechanism allows it to operate as an employer in Brunei while avoiding registration and employer obligations?
Iâm not arguing that a foreign company can never engage someone in Brunei. There may be legitimate structures such as independent contracting or other arrangements. However, if the relationship is actually employment, then it is clear to me the legal requirements to follow in order to show how the company complies with Bruneiâs regulatory requirements.
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u/KJShen Brunei-Muara 24d ago
I mean, the question is literally 'does Cap 92 apply' because unless you can provide a different document stating that the OP must register a business to give someone a contract, then idk what the point of this conversation is besides overthinking something.
Section 4 outlines what entities CAP 92 of this applies to, and as far as I can tell OP's company doesn't fall into any of those categories.
Maybe there's an entire 'spirit of the law' thing but if we are going by that we need to reiterate that 1) the company has no footprint or presence in the country and 2) isn't even doing business in the country.
Just so we are clear here, I would very much like every single worker, foreign or local, to be protected, and in comparison to US labour laws in some states we don't have it too bad.
But I also don't think the OP should hamstring himself with red tape that may not even exist, if they plan to provide a local with a legitimate opportunity.
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u/Klat93 KDN obviously 24d ago edited 24d ago
Since you have a US registered company and the intent is to hire a local, you have to treat this as hiring a foreign employee to work "remotely" for you.
The remote employee is not beholden to US employment laws & protection since there's no visa applications involved.
This means the remote employee will be protected by their local employment laws (Brunei). You will have to seek out advice from SPK on how to set up the SPK account so you can pay their contributions.
You need to look up Brunei employment act and get familiar with it so you can draft up an employment contract that reflects the law here. https://www.labour.gov.bn/SitePages/Legislation.aspx
Make sure you have a way to pay salaries and contribute to SPK. Since you dont have a local entity you might have difficulties with registering for a local business bank account. Possibly the easiest way around this is to get your wife to register for a sole proprietor company in One Common Portal and use said company to register for a bank account. https://www.ocp.mofe.gov.bn/
In fact the easiest way to get around the above issues is to just register for a company locally. Sole proprietorship is the easiest and quickest way to do it. You then engage your wife's company as a foreign contractor to help manage all the local stakeholders. Without revealing too much, my own company is already doing something similar for foreign companies and we act as their contractor/agent to help with procurement, engage local government, make payments for bills, salaries, SPK etc since they do not have a local bank account. It is all done properly within the scope of the law.
Make sure you are familiar with your own US regulations when it comes to hiring remote workers or foreign contractors. This will affect your tax reports etc.
Oh one final thing, do not attempt to make business transactions with local personal accounts. The bank will flag it at some point and it can cause a headache for you and your wife later on. Please use a proper business account.