Businesses are required to disclose nominee shareholders and to retain books of account records for not less than seven years following an amendment of the Companies Act Order 2014 which will be implemented starting today.
In a statement issued yesterday, the Ministry of Finance said the amendments were done to promote a conducive and transparent business environment, and encourage investments.
The Companies Act (Amendment) Order 2014 is effective on January 1, 2015 and the Companies Act (Amendment) (No.2), Order 2014, took effect on November 24, 2014.
"In enhancing transparency and strengthening governance, the Companies Act (Amendment) Order 2014, has included requirements for the disclosure of nominee shareholders; prohibition of the issuance of share warrants; and the requirement of a company to retain books of account records for not less than seven years," the ministry said.
The finance ministry, however, did not say when exactly these requirements are needed or for which business dealings.
The ministry said it only costs $300 to incorporate a business. Companies with revenues not exceeding $1 million dollars are exempted from appointing an auditor.
New companies are no longer required to have a statutory declaration, as stipulated in the Companies Act (Amendment) (No.2), Order 2014.
According to information on the Brunei Economic Development Board's (BEDB) website, companies that are incorporated in Brunei are governed by the Act.
Under the Act, four types of companies may be incorporated.
These include companies limited by shares; companies limited by guarantee; companies limited by both shares and guarantee; and unlimited companies.
These companies may either be private or public businesses.
A private company must, by its constitution (Articles of Association), restrict the right of members to transfer shares, limit its membership to fifty and prohibit any invitation to the public to subscribe for shares or debentures.
A public company is one which may issue freely transferable shares to the public and is not bound by any of the above restrictions relating to a private company.
Prior to the amendment of the Acts all companies must appoint auditors to audit their accounts and report to the shareholders.
The companies must also file annual returns with the Registrar of Companies and submit annual tax returns to the Collector of Income Tax at the Ministry of Finance.