Brunei Darussalam Economy Profile - Doing Business 2019

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Brunei Darussalam Economy Profile - Doing Business 2019
Doing Business 2019   Brunei Darussalam

                                          Economy Profile

                         Brunei Darussalam

                                                            Page 1
Brunei Darussalam Economy Profile - Doing Business 2019
Doing Business 2019       Brunei Darussalam

                                     Economy Profile of Brunei Darussalam

                                          Doing Business 2019 Indicators
                                     (in order of appearance in the document)

Starting a business                 Procedures, time, cost and paid-in minimum capital to start a limited liability company

Dealing with construction permits   Procedures, time and cost to complete all formalities to build a warehouse and the quality
                                    control and safety mechanisms in the construction permitting system

Getting electricity                 Procedures, time and cost to get connected to the electrical grid, and the reliability of the
                                    electricity supply and the transparency of tariffs

Registering property                Procedures, time and cost to transfer a property and the quality of the land administration
                                    system

Getting credit                      Movable collateral laws and credit information systems

Protecting minority investors       Minority shareholders’ rights in related-party transactions and in corporate governance

Paying taxes                        Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as
                                    well as post-filing processes

Trading across borders              Time and cost to export the product of comparative advantage and import auto parts

Enforcing contracts                 Time and cost to resolve a commercial dispute and the quality of judicial processes

Resolving insolvency                Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
                                    legal framework for insolvency

Labor market regulation             Flexibility in employment regulation and aspects of job quality

                                                                                                                                       Page 2
Doing Business 2019           Brunei Darussalam

About Doing Business

The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.

The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.

Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.

By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.

In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.

The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.

More about Doing Business (PDF, 5MB)

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Doing Business 2019               Brunei Darussalam

         Ease of Doing Business in                                                                                             DB 2019 Rank
                                               Region                 East Asia & Pacific
                                                                                                                190                                       1
        Brunei Darussalam
                                               Income Category        High income                                                             55
                                                                                                                         DB 2019 Ease of doing business score
                                               Population             428,697
                                                                                                                 0                                100

                                               City Covered           Bandar Seri Begawan                                                     72.03

                                                            DB 2019 Ease of Doing Business Score

                       0                                                                                                                100
                                                                                                                 80.60: Malaysia (Rank: 15)

                                                                                                          73.64: China (Rank: 46)

                                                                                                       72.03: Brunei Darussalam (Rank: 55)

                                                                                                67.96: Indonesia (Rank: 73)

                                                                                            63.41: Regional Average (East Asia & Pacific)

                                                                                    57.68: Philippines (Rank: 124)

Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies
in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100
represents the best performance. The ease of doing business ranking ranges from 1 to 190.

Rankings on Doing Business topics - Brunei Darussalam

                                                                                1
         1
                16
                                               31
         28
                                                                                                48
                               55
         55                                                                                                                                        67            64

                                                                                                                 84
         82
 Rank

        109

        136                                                    142
                                                                                                                               149

        163

        190

              Starting       Dealing         Getting        Registering      Getting         Protecting        Paying         Trading         Enforcing        Resolving
                 a            with          Electricity      Property        Credit           Minority         Taxes          across          Contracts       Insolvency
              Business     Construction                                                      Investors                        Borders
                             Permits

Ease of Doing Business Score on Doing Business topics - Brunei Darussalam

                                                                              100.00
        100    94.92
                                             86.57

        80                    73.49                                                                             74.03
                                                                                               65.00
                                                                                                                               58.70            60.95
Score

        60                                                                                                                                                      55.11
                                                              51.48

        40

        20

         0

              Starting       Dealing         Getting        Registering       Getting        Protecting         Paying        Trading         Enforcing        Resolving
                 a            with          Electricity      Property         Credit          Minority          Taxes         across          Contracts       Insolvency
              Business     Construction                                                      Investors                        Borders
                             Permits

                                                                                                                                                                           Page 4
Doing Business 2019           Brunei Darussalam

     Starting a Business

This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited
liability company to start up and formally operate in each economy’s largest business city.

To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10
and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two
types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the
other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a
business. These scores are the simple average of the scores for each of the component indicators.

The most recent round of data collection for the project was completed in May 2018. See the methodology for more information.

 What the indicators measure                              Case study assumptions

Procedures to legally start and formally operate        To make the data comparable across economies, several assumptions about the
a company (number)                                      business and the procedures are used. It is assumed that any required information is
                                                        readily available and that the entrepreneur will pay no bribes.
• Preregistration (for example, name verification or
  reservation, notarization)
                                                        The business:
• Registration in the economy’s largest business        - Is a limited liability company (or its legal equivalent). If there is more than one type
  city
                                                        of limited liability company in the economy, the most common among domestic firms
• Postregistration (for example, social security        is chosen. Information on the most common form is obtained from incorporation
  registration, company seal)                           lawyers or the statistical office.
                                                        - Operates in the economy’s largest business city. For 11 economies the data are
• Obtaining approval from spouse to start a
  business or to leave the home to register the         also collected for the second largest business city.
  company                                               - The entire office space is approximately 929 square meters (10,000 square feet).
                                                        - Is 100% domestically owned and has five owners, none of whom is a legal entity;
• Obtaining any gender specific document for            has a start-up capital of 10 times income per capita and has a turnover of at least
  company registration and operation or national        100 times income per capita.
  identification card                                   - Performs general industrial or commercial activities, such as the production or sale
                                                        of goods or services to the public. The business does not perform foreign trade
Time required to complete each procedure
                                                        activities and does not handle products subject to a special tax regime, for example,
(calendar days)
                                                        liquor or tobacco. It does not use heavily polluting production processes.
• Does not include time spent gathering                 - Leases the commercial plant or offices and is not a proprietor of real estate and the
  information                                           amount of the annual lease for the office space is equivalent to the income per
• Each procedure starts on a separate day (2            capita.
  procedures cannot start on the same day)              - Does not qualify for investment incentives or any special benefits.
                                                        - Has at least 10 and up to 50 employees one month after the commencement of
• Procedures fully completed online are recorded        operations, all of whom are domestic nationals.
  as ½ day                                              - Has a company deed that is 10 pages long.
• Procedure is considered completed once final
  document is received                                  The owners:

• No prior contact with officials                       - Have reached the legal age of majority. If there is no legal age of majority, they are
                                                        assumed to be 30 years old.
Cost required to complete each procedure (% of          - Are sane, competent, in good health and have no criminal record.
income per capita)                                      - Are married and the marriage is monogamous and registered with the authorities.
                                                        - Where the answer differs according to the legal system applicable to the woman or
• Official costs only, no bribes                        man in question (as may be the case in economies where there is legal plurality), the
• No professional fees unless services required by      answer used will be the one that applies to the majority of the population.
  law or commonly used in practice

Paid-in minimum capital (% of income per
capita)

• Funds deposited in a bank or with third party
  before registration or up to 3 months after
  incorporation

                                                                                                                                                     Page 5
Doing Business 2019         Brunei Darussalam

Starting a Business - Brunei Darussalam

  Standardized Company

 Legal form                                                             Private Limited Company

 Paid-in minimum capital requirement                                    BND 0

 City Covered                                                           Bandar Seri Begawan

  Indicator                                             Brunei             East Asia &            OECD high             Best Regulatory
                                                        Darussalam         Pacific                income                Performance

 Procedure – Men (number)                              3                   6.8                    4.9                  1 (New Zealand)

 Time – Men (days)                                     5                   25.9                   9.3                  0.5 (New Zealand)

 Cost – Men (% of income per capita)                   1.2                 17.8                   3.1                  0.0 (Slovenia)

 Procedure – Women (number)                            4                   6.9                    4.9                  1 (New Zealand)

 Time – Women (days)                                   6                   26.0                   9.3                  0.5 (New Zealand)

 Cost – Women (% of income per capita)                 1.2                 17.8                   3.1                  0.0 (Slovenia)

 Paid-in min. capital (% of income per capita)         0.0                 4.0                    8.6                  0.0 (117 Economies)

 Figure – Starting a Business in Brunei Darussalam and comparator economies – Ranking and Score

                                                    DB 2019 Starting a Business Score

       0                                                                                            100

                                                                                           94.92: Brunei Darussalam (Rank: 16)

                                                                                          93.52: China (Rank: 28)

                                                                                 83.29: Regional Average (East Asia & Pacific)

                                                                                 82.78: Malaysia (Rank: 122)

                                                                             81.22: Indonesia (Rank: 134)

                                                                     71.97: Philippines (Rank: 166)

Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores
are the simple average of the scores for each of the component indicators.

                                                                                                                                                Page 6
Doing Business 2019   Brunei Darussalam

  Figure – Starting a Business in Brunei Darussalam – Procedure, Time and Cost

                                                Time (days)        Cost (% of income per capita)
               6                                                                                                                        0.8

                                                                                                                                        0.7

                                                                                                                                              Cost (% of income per capita)
               5

                                                                                                                                        0.6

               4
 Time (days)

                                                                                                                                        0.5

               3                                                                                                                        0.4

                                                                                                                                        0.3
               2

                                                                                                                                        0.2

               1
                                                                                                                                        0.1

               0                                                                                                                        0
                        1                             3                               5                              *6
                                                              Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.

                                                                                                                                                                              Page 7
Doing Business 2019          Brunei Darussalam

Details – Starting a Business in Brunei Darussalam – Procedure, Time and Cost

No.     Procedures                                                                           Time to Complete      Associated Costs

1      APPLIES TO WOMEN ONLY: Obtain permission from husband to leave                       1 day                 no charge
        home in order to start a business
        Agency : Domicile
        According to the Islamic Family Law 61, subject to Hukum Syara’ and
        confirmation by the Court, a wife shall not be entitled to maintenance when she is
        nusyuz or unreasonably refuses to obey the lawful wishes or commands of her
        husband, including...(b) when she leaves her husband’s home against his
        wishes.

3       Submit incorporation documents and pay registration fees                             2 days                BDN 300 (flat fee for
        Agency : Registry of Companies and Business Names Division, Ministry of                                    registering an
        Finance                                                                                                    industrial company)
        Registration is done at www.roc.gov.bn. As of May 2017, the online system has
        been enhanced to allow for instant verification of the company name. The system
        automatically generates a response if the name is unique. Once the proposed
        company name is verified and available to be used, entrepreneurs can proceed
        to the fill in online application form and submit required documents.

        The Registry of Companies issues a certificate of incorporation, two certified
        copies of the memorandum and articles of association, and registration forms for
        the Employees Provident Fund and the Collector of Income Tax. The Registry
        automatically notifies the Collector of Income Tax of the company’s registration.

        The documents required for incorporation are:

        - Identification documents
        - Emails and contact information for each person
        - Consent to act as director form
        - Form X (list of directors)
        - Memorandum and Articles of Association signed by all members.

        The registration documents are sent in electronic version, typically on the next
        business day from submitting the application.

5       Make a company seal or stamp                                                         3 days                BND 185
        Agency : Seal-making shop
        A company seal is not required for most transactions, but is used in practice.
        Newly incorporated companies will in practice get a seal or a stamp. The
        company seal is used on share certificates or official documents while the stamp
        is used frequently for day to day activities, such as invoices.

    6   Register for Employees Provident Fund                                                1 day, simultaneous   no charge
        Agency : Provident Fund                                                              with previous
        Once the company successfully incorporated, the information will be                  procedure
        automatically forwarded to the Employees Provident Fund (EPF) system. It is no
        longer required submit hard copy of documents (certificate of incorporation, form
        X, ID cards) to register the company with EPF. Once registrar submits certificate
        to EPF, the EPF sends an e-mail to directors with the details of procedures and
        requirements (e.g., guidelines on how to monitor contributions). After that, the
        company must complete the registration online at tap.com.bn and obtain the
        account number.

        Companies must also register the employees with EPF, and pay relevant
        contributions. Registration of employees is done online at tap.com.bn, and this
        can be done at the same time as registration of the company. To register
        employees, it is required to provide name and salary of each person. The identity
        cards of all employees as well as the employment contracts should be presented
        to the TAP counter in order to finalize employees' registration and be able to
        make contributions.

        If the employee already has TAP and SCP no, the registration will be
        automatically updated once information is provided. If the employee is new to the
        workforce (i.e., with no prior TAP and SCP no), usually, registration is completed
        on the following working day.

Applies to women only.
Takes place simultaneously with previous procedure.

                                                                                                                                           Page 8
Doing Business 2019              Brunei Darussalam

     Dealing with Construction Permits

This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in May 2018. See the methodology for more information

 What the indicators measure                              Case study assumptions

Procedures to legally build a warehouse                 To make the data comparable across economies, several assumptions about the
(number)                                                construction company, the warehouse project and the utility connections are used.

• Submitting all relevant documents and obtaining       The construction company (BuildCo):
  all necessary clearances, licenses, permits and
  certificates                                          - Is a limited liability company (or its legal equivalent) and operates in the economy’s
                                                        largest business city. For 11 economies the data are also collected for the second
• Submitting all required notifications and receiving   largest business city.
  all necessary inspections
                                                        - Is 100% domestically and privately owned; has five owners, none of whom is a
• Obtaining utility connections for water and           legal entity. Has a licensed architect and a licensed engineer, both registered with
  sewerage                                              the local association of architects or engineers. BuildCo is not assumed to have any
                                                        other employees who are technical or licensed experts, such as geological or
• Registering and selling the warehouse after its
  completion                                            topographical experts.
                                                        - Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure                upon its completion.
(calendar days)
                                                        The warehouse:
• Does not include time spent gathering
  information                                           - Will be used for general storage activities, such as storage of books or stationery.
                                                        - Will have two stories, both above ground, with a total constructed area of
• Each procedure starts on a separate day—              approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
  though procedures that can be fully completed         meters (9 feet, 10 inches) high and will be located on a land plot of approximately
  online are an exception to this rule
                                                        929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
• Procedure is considered completed once final          warehouse is valued at 50 times income per capita.
  document is received                                  - Will have complete architectural and technical plans prepared by a licensed
                                                        architect. If preparation of the plans requires such steps as obtaining further
• No prior contact with officials
                                                        documentation or getting prior approvals from external agencies, these are counted
Cost required to complete each procedure (% of          as procedures.
income per capita)                                      - Will take 30 weeks to construct (excluding all delays due to administrative and
                                                        regulatory requirements).
• Official costs only, no bribes
                                                        The water and sewerage connections:
Building quality control index (0-15)
                                                        - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
• Quality of building regulations (0-2)                 is no water delivery infrastructure in the economy, a borehole will be dug. If there is
• Quality control before construction (0-1)             no sewerage infrastructure, a septic tank in the smallest size available will be
                                                        installed or built.
• Quality control during construction (0-3)             - Will have an average water use of 662 liters (175 gallons) a day and an average
• Quality control after construction (0-3)              wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
                                                        1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
• Liability and insurance regimes (0-2)
                                                        gallons) a day.
• Professional certifications (0-4)                     - Will have a constant level of water demand and wastewater flow throughout the
                                                        year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
                                                        the sewerage connection.

                                                                                                                                                   Page 9
Doing Business 2019             Brunei Darussalam

Dealing with Construction Permits - Brunei Darussalam

       Standardized Warehouse

    Estimated value of warehouse                                                        BND 2,075,582

    City Covered                                                                        Bandar Seri Begawan

       Indicator                                                 Brunei                      East Asia &              OECD high          Best Regulatory
                                                                 Darussalam                  Pacific                  income             Performance

    Procedures (number)                                          20                          15.1                     12.7               None in 2017/18

    Time (days)                                                  83                          133.5                    153.1              None in 2017/18

    Cost (% of warehouse value)                                  1.9                         1.9                      1.5                None in 2017/18

    Building quality control index (0-15)                        12.0                        9.1                      11.5               15.0 (3 Economies)

  Figure – Dealing with Construction Permits in Brunei Darussalam and comparator economies – Ranking and Score

                                                     DB 2019 Dealing with Construction Permits Score

                    0                                                                                                  100

                                                                                                        86.96: Malaysia (Rank: 3)

                                                                                       73.49: Brunei Darussalam (Rank: 55)

                                                                                     70.71: Regional Average (East Asia & Pacific)

                                                                                 68.58: Philippines (Rank: 94)

                                                                               66.57: Indonesia (Rank: 112)

                                                                              65.16: China (Rank: 121)

Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with
construction permits. These scores are the simple average of the scores for each of the component indicators.

  Figure – Dealing with Construction Permits in Brunei Darussalam – Procedure, Time and Cost

                                                       Time (days)               Cost (% of warehouse value)
                                                                                                                                                              0.8
               80

                                                                                                                                                              0.7
               70
                                                                                                                                                                    Cost (% of warehouse value)

                                                                                                                                                              0.6
               60
 Time (days)

                                                                                                                                                              0.5
               50

               40                                                                                                                                             0.4

               30                                                                                                                                             0.3

               20                                                                                                                                             0.2

               10                                                                                                                                             0.1

               0                                                                                                                                              0
                        1   2   *3   4      5    6    7      8          9       10      11         12      13    14     15     16   17    18    19    20
                                                                            Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.

                                                                                                                                                                                                  Page 10
Doing Business 2019                      Brunei Darussalam

Figure – Dealing with Construction Permits in Brunei Darussalam and comparator economies – Measure of Quality

              15
                                                                            13.0                   13.0                   13.0
                              12.0
                                                     11.1
Index score
              10                                                                                                                                9.1

                  5

                  0

                        Brunei Darussalam            China                Indonesia              Malaysia               Philippines      East Asia & Pacific

Details – Dealing with Construction Permits in Brunei Darussalam – Procedure, Time and Cost

  No.                 Procedures                                                                              Time to Complete        Associated Costs

1                     Obtain a copy of the survey plan                                                        1 day                   BND 15
                      Agency : Survey Department
                      A survey plan is a mandatory document that must be presented when requesting
                      a building permit.

2                     Land Surveyor validates the survey plan and draws the topographical map                 7 days                  BND 3,225
                      Agency : Private Land Surveyor
                      A land surveyor is hired to check the accuracy of the copy of the survey map and
                      confirm that the boundaries of the land provided in the copy of the survey plan
                      are accurate. The report prepared by the Land surveyor will enable the architect
                      to properly and accurately design the building. At the same time, the land
                      surveyor will also draw the topographical survey of the land.

              3       Obtain a geotechnical study/soil test                                                   7 days                  BND 2,500
                      Agency : Private Firm
                      A soil test is performed to determine the suitability of the soil and assess whether
                      it can accommodate the construction project. I t also help in identifying the types
                      of soil and also test the strength of the soil.

4                     Hire an accredited checker to check compliance of the building plans                    1 day                   BND 15,567
                      Agency : Private
                      According to the Building Control Order (2014) and Building Control Regulations
                      (2014), an independent accredited checker must be hired by BuildCo. This is a
                      new rule where an independent checker has the responsibility to verify
                      compliance of building plans with regulations.
                      All building plans are given to the accredited checker along with the survey plan.

5                     Hire a resident technical officer to conduct inspections during construction            1 day                   BND 14,000
                      Agency : Private
                      According to the Building Control Order (2014) and Building Control Regulations
                      (2014), an independent technical officer is hired with the mandate to conduct
                      inspections during construction, and to issue a compliance certificate upon
                      completion of the building to certify that the building is in compliance with the
                      regulations and was built according to the approved plans.

6                     Obtain planning approval from Town and Country Planning Department                      14 days                 no charge
                      Agency : Town and Country Planning Department
                      According to Clause 3, Part II of the Building Guidelines Requirements 2014, the
                      Qualified Person must submit the application forms accompanied with 2 sets of
                      plan consisting of survey plan and building development plans to the Town and
                      Planning Authority for approval. A copy of the Land Title Deed must be submitted
                      as well for verification of the compliance with special conditions of title and other
                      terms of the Land Title Deed. The submission is now being carried online with
                      the e-KP portal and building plan, survey plan and copy of the land title deed may
                      be submitted in PDF format. Form A must also be submitted certifying that the
                      Qualified Person will be responsible for compliance with the Building Guidelines
                      Requirements.

                      Upon review and approval by TCP, the Qualified Person is then requested to
                      submit two sets of building plans in hard-copy (known as clean sets) for the
                      issuance of the Planning Approval.

7                     Obtain approval from Fire Department                                                    1 day                   BND 105
                      Agency : Fire Department
                      Once the approval has been obtained, BuildCo must visit the Fire department to
                      have the documents stamped and to pay for the fire department fees. This
                      process is completed in person. This approval is needed to obtain the building
                      permit from ABCi

                                                                                                                                                               Page 11
Doing Business 2019         Brunei Darussalam

8    Obtain development approval of building works from ABCi                                 14 days   BND 451
     Agency : ABCi - Building department
     The Qualified Person submits an application form (Form A) for development
     approval of any building works from ABCi through the government's OneBiz
     portal along with a softcopy of the building plans in PDF format for their review
     and approval.

9    Obtain permit to carry out building works from ABCi                                     1 day     no charge
     Agency : ABCi
     The details of all the hired licensed professionals must be provided to ABCi to
     obtain the permit to carry out building works.

10   Supervising qualified person submits the notice of completion of all piling             1 day     no charge
     works
     Agency : ABCi
     According to Article 25 (1) (a), (a) the supervising qualified person submits a
     notice of completion (fom D) of all piling works carried out, a record plan
     showing full details of the piling works and a certificate of supervision of those
     piling works within 28 days of completion of those piling works;

11   Supervising qualified person submits a certificate stating that the building            1 day     no charge
     works have been carried out under his supervision
     Agency : ABCi
     According to Article 25. (1) (b) and (c) of the Building Control Regulations (2014),
     the technical officer who has conducted all the inspections during construction
     must submit a compliance certificate to attest that he has supervised the
     construction of the building and that it was done in compliance with the approved
     plans.

12   Builder submits the Builder's Completion Certificate of Completion of                   1 day     no charge
     Building Works
     Agency : ABCi
     According to Article 15 (1) (d) of the Building Control Order (2014), the Builder
     (BuildCo) must also submit a certificate within 7 days of the completion of
     building works, certifying that, according to best of his knowledge, the building
     was constructed in accordance with the law and the approved plans.

13   Perform water pressure test                                                             14 days   BND 250
     Agency : Private Firm
     Water services requires that BuildCo to perform a water pressure test. A sample
     of the water is also taken to test the quality of the water. The report of this water
     pressure test is required when applying for the permanent water connection.

14   Receive inspection for water test pressure                                              1 day     no charge
     Agency : Water Services of JKR (ABCi)
     Once the water pressure test has been done, there is an inspection to verify the
     water pressure test report. BuildCo will have to inform water services that both
     the water pressure test and the inspection have been concluded.

15   Inform water services of the water pressure test result and physical                    1 day     no charge
     inspection
     Agency : Water Services of JKR (ABCi)
     Once the water pressure test has been confirmed and the inspection received,
     BuildCo must inform Water Services of JKR (ABCi) of the results of the water
     pressure test and also that the inspection has been conducted.
     This water pressure test is required when applying to change from temporary
     water services to permanent water services.

16   Request final inspection and await confirmation                                         7 days    no charge
     Agency : ABCi
     The Supervising qualified person requests the final inspection online via the
     OneBiz portal by submitting Form E certifying that the construction has been
     under his supervision and was done in compliance with the approved plans and
     regulations. At the same time, pictures of the construction must be submitted as
     evidence of the progression of the work. ABCi will evaluate the pictures and
     organize the joint inspection from several departments and utilities.

     Once the date of pre-inspection has been confirmed and conducted, all the
     comments as noted during the pre-inspection the Qualified Person can proceed
     to submit the Form E for subsequent issuance of the occupancy permit by ABCi
     respectively.

17   Receive joint final inspection                                                          1 day     no charge
     Agency : ABCi
     A joint inspection is carried out by ABCi where the Fire department, the water
     department, roads department, sewerage department and electrical department
     will all inspect the building. If no discrepancies are discovered, the occupancy
     permit is issued within 2 weeks.

                                                                                                                   Page 12
Doing Business 2019         Brunei Darussalam

18    Pay for the Fire Department inspection fees                                          1 day     BND 750
      Agency : Fire Department
      Once the inspection is completed, the Fire Department issue the payment notice
      for the fee to be paid. During the inspection, the fire inspection will mark on a
      specific form (Borang B) everything that applies. BuildCo must bring this form to
      the Fire Department and pay the inspection fees. Payment must be done in
      person as online services are not available for this payment. This proof of
      payment must be submitted when requesting the occupancy permit.

19    Request and obtain Occupancy Certificate                                             13 days   no charge
      Agency : ABCi
      According to article 16. (1) (a) Section 5 - Building Occupancy, an occupancy
      certificate must be obtained prior to occupying any building. Proof of the payment
      for the fire department inspection must be submitted to receive the occupancy
      permit.

20    Submit request to change from temporary to permanent water connection                1 day     BND 3,000
      Agency : Water Services of JKR (ABCi)
      Once the occupancy permit has been obtained, BuildCo must submit a request to
      change the temporary water connection to a permanent water connection.

Takes place simultaneously with previous procedure.

                                                                                                                 Page 13
Doing Business 2019         Brunei Darussalam

Details – Dealing with Construction Permits in Brunei Darussalam – Measure of Quality

                                                                                                      Answer                 Score

Building quality control index (0-15)                                                                                        12.0

Quality of building regulations index (0-2)                                                                                  2.0

  How accessible are building laws and regulations in your economy? (0-1)                             Available online;      1.0
                                                                                                      Free of charge;
                                                                                                      In official gazette.

  Which requirements for obtaining a building permit are clearly specified in the building            List of required       1.0
  regulations or on any accessible website, brochure or pamphlet? (0-1)                               documents; Fees
                                                                                                      to be paid;
                                                                                                      Required
                                                                                                      preapprovals.

Quality control before construction index (0-1)                                                                              1.0

  Which third-party entities are required by law to verify that the building plans are in             Private firm.          1.0
  compliance with existing building regulations? (0-1)

Quality control during construction index (0-3)                                                                              2.0

  What types of inspections (if any) are required by law to be carried out during construction?       Inspections by         1.0
  (0-2)                                                                                               external engineer
                                                                                                      or firm;
                                                                                                      Inspections at
                                                                                                      various phases.

  Do legally mandated inspections occur in practice during construction? (0-1)                        Mandatory              1.0
                                                                                                      inspections are
                                                                                                      always done in
                                                                                                      practice.

Quality control after construction index (0-3)                                                                               3.0

  Is there a final inspection required by law to verify that the building was built in accordance     Yes, final             2.0
  with the approved plans and regulations? (0-2)                                                      inspection is
                                                                                                      done by
                                                                                                      government
                                                                                                      agency.

  Do legally mandated final inspections occur in practice? (0-1)                                      Final inspection       1.0
                                                                                                      always occurs in
                                                                                                      practice.

Liability and insurance regimes index (0-2)                                                                                  0.0

  Which parties (if any) are held liable by law for structural flaws or problems in the building      No party is held       0.0
  once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)                           liable under the
                                                                                                      law.

  Which parties (if any) are required by law to obtain an insurance policy to cover possible          No party is            0.0
  structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance   required by law
  or Decennial Insurance)? (0-1)                                                                      to obtain
                                                                                                      insurance .

Professional certifications index (0-4)                                                                                      4.0

  What are the qualification requirements for the professional responsible for verifying that the     Minimum number         2.0
  architectural plans or drawings are in compliance with existing building regulations? (0-2)         of years of
                                                                                                      experience;
                                                                                                      University degree
                                                                                                      in architecture or
                                                                                                      engineering;
                                                                                                      Being a
                                                                                                      registered
                                                                                                      architect or
                                                                                                      engineer;
                                                                                                      Passing a
                                                                                                      certification
                                                                                                      exam.

                                                                                                                                     Page 14
Doing Business 2019        Brunei Darussalam

 What are the qualification requirements for the professional who supervises the construction   Minimum number      2.0
 on the ground? (0-2)                                                                           of years of
                                                                                                experience;
                                                                                                University degree
                                                                                                in engineering,
                                                                                                construction or
                                                                                                construction
                                                                                                management;
                                                                                                Being a
                                                                                                registered
                                                                                                architect or
                                                                                                engineer;
                                                                                                Passing a
                                                                                                certification
                                                                                                exam.

                                                                                                                          Page 15
Doing Business 2019              Brunei Darussalam

     Getting Electricity

This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology
for more information.

 What the indicators measure                                Case study assumptions

Procedures to obtain an electricity connection             To make the data comparable across economies, several assumptions about the
(number)                                                   warehouse, the electricity connection and the monthly consumption are used.

• Submitting all relevant documents and obtaining          The warehouse:
  all necessary clearances and permits
                                                           - Is owned by a local entrepreneur and is used for storage of goods.
• Completing all required notifications and                - Is located in the economy’s largest business city. For 11 economies the data are
  receiving all necessary inspections
                                                           also collected for the second largest business city.
• Obtaining external installation works and possibly       - Is located in an area where similar warehouses are typically located and is in an
  purchasing material for these works                      area with no physical constraints. For example, the property is not near a railway.
                                                           - Is a new construction and is being connected to electricity for the first time.
• Concluding any necessary supply contract and
                                                           - Has two stories with a total surface area of approximately 1,300.6 square meters
  obtaining final supply
                                                           (14,000 square feet). The plot of land on which it is built is 929 square meters
Time required to complete each procedure                   (10,000 square feet).
(calendar days)
                                                           The electricity connection:
• Is at least 1 calendar day
                                                           - Is a permanent one with a three-phase, four-wire Y connection with a subscribed
• Each procedure starts on a separate day                  capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1
• Does not include time spent gathering                    kilowatt (kW).
  information                                              - Has a length of 150 meters. The connection is to either the low- or medium-voltage
                                                           distribution network and is either overhead or underground, whichever is more
• Reflects the time spent in practice, with little         common in the area where the warehouse is located and requires works that involve
  follow-up and no prior contact with officials
                                                           the crossing of a 10-meter road (such as by excavation or overhead lines) but are all
Cost required to complete each procedure (% of             carried out on public land. There is no crossing of other owners’ private property
income per capita)                                         because the warehouse has access to a road.
                                                           - Does not require work to install the internal wiring of the warehouse. This has
• Official costs only, no bribes                           already been completed up to and including the customer’s service panel or
• Value added tax excluded                                 switchboard and the meter base.

The reliability of supply and transparency of              The monthly consumption:
tariffs index (0-8)
                                                           - It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00
• Duration and frequency of power outages (0–3)            p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that
• Tools to monitor power outages (0–1)                     there are no electricity cuts (assumed for simplicity reasons) and the monthly energy
                                                           consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1)                      - If multiple electricity suppliers exist, the warehouse is served by the cheapest
• Regulatory monitoring of utilities’ performance          supplier.
  (0–1)                                                    - Tariffs effective in January of the current year are used for calculation of the price of
                                                           electricity for the warehouse. Although January has 31 days, for calculation
• Financial deterrents limiting outages (0–1)              purposes only 30 days are used.
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*

• Price based on monthly bill for commercial
  warehouse in case study

*Note: Doing Business measures the price of
electricity, but it is not included in the ease of doing
business score nor the ranking on the ease of
getting electricity.

                                                                                                                                                         Page 16
Doing Business 2019           Brunei Darussalam

Getting Electricity - Brunei Darussalam

  Standardized Connection

 Price of electricity (US cents per kWh)                                  5.2

 Name of utility                                                          Department of Electrical Services (at the Ministry of Energy)

 City Covered                                                             Bandar Seri Begawan

  Indicator                                              Brunei                 East Asia &        OECD high              Best Regulatory
                                                         Darussalam             Pacific            income                 Performance

 Procedures (number)                                     5                   4.3                   4.5                    3 (25 Economies)

 Time (days)                                             35                  65.0                  77.2                   18 (3 Economies)

 Cost (% of income per capita)                           40.1                625.1                 64.2                   0.0 (3 Economies)

 Reliability of supply and transparency of tariff        7                   4.0                   7.5                    8.0 (27 Economies)
 index (0-8)

 Figure – Getting Electricity in Brunei Darussalam and comparator economies – Ranking and Score

                                                       DB 2019 Getting Electricity Score

        0                                                                                            100

                                                                                               99.27: Malaysia (Rank: 4)

                                                                                         92.01: China (Rank: 14)

                                                                                     87.45: Philippines (Rank: 29)

                                                                                     86.57: Brunei Darussalam (Rank: 31)

                                                                                     86.38: Indonesia (Rank: 33)

                                                                          75.06: Regional Average (East Asia & Pacific)

Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are
the simple average of the scores for all the component indicators except the price of electricity.

                                                                                                                                                    Page 17
Doing Business 2019                Brunei Darussalam

  Figure – Getting Electricity in Brunei Darussalam – Procedure, Time and Cost

                                                              Time (days)         Cost (% of income per capita)
                   35                                                                                                                          40

                   30                                                                                                                          35

                                                                                                                                                      Cost (% of income per capita)
                                                                                                                                               30
                   25
 Time (days)

                                                                                                                                               25
                   20
                                                                                                                                               20
                   15
                                                                                                                                               15

                   10
                                                                                                                                               10

                   5                                                                                                                           5

                   0                                                                                                                           0
                                   1                     *2                          3                       *4                 5
                                                                            Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.

  Figure – Getting Electricity in Brunei Darussalam and comparator economies – Measure of Quality

                                                                                                   8
                   8
                               7
                   7
                                                   6                        5.8                                       6
                   6
     Index score

                   5
                                                                                                                                       4.0
                   4
                   3
                   2
                   1
                   0

                        Brunei Darussalam        China                 Indonesia                Malaysia          Philippines   East Asia & Pacific

                                                                                                                                                                                      Page 18
Doing Business 2019           Brunei Darussalam

Details – Getting Electricity in Brunei Darussalam – Procedure, Time and Cost

No.     Procedures                                                                               Time to Complete   Associated Costs

1       Submit new connection application and permit to dig application                          7 calendar days    BND 0
        Agency : Authority for Building and Construction Industry (ABCi)
        The client needs to hire an electrical contractor who is registered and licensed
        with the Ministry of Development. The contractor must then submit the proposed
        electrical tapping point (external electrical layout) and permit to dig application
        form online to ABCi via OneBiz.

        From there, ABCi will take care of the excavation permit, and coordinate with
        DES for the technical study for the connection. Once the site survey is carried-
        out,ABCi will upload a letter through OneBiz stating the connection fee to be paid
        during the final procedure (BND 1,650). The letter also allows the contractor to
        purchase a meter from DES approved vendors. The permit to dig approval is also
        uploaded together with the letter.

    2   Obtain site survey                                                                       1 calendar day     BND 0
        Agency : Department of Electrical Services
        Once an application is submitted to ABCi, they will schedule a site survey. In the
        majority of cases the client (or his contractor) will be physically present during the
        site visit. The external site inspection is needed to (i) confirm the location of the
        tapping supply, (ii) make sure the network does not need to be extended, and (iii)
        carry-out the technical study of the connection works.

3       Obtain external works and meter installation from approved electrical                    21 calendar days   BND 15,000
        contractor
        Agency : Approved electrical contractor
        The external works is completed by the approved electrical contractor (QP) and
        this consists mainly of laying underground cables from the warehouse to the
        closest point of supply on the LV network. DES will assist to turn off the supply
        prior to connecting to the LV network. In addition, the contractor will need to
        purchase a meter and install it. DES will turn on the supply in order for live testing
        to be done by the contractor and verified by an electrical professional engineer
        (PE). For capacities larger than 215 kVA (300 Amp) a substation will also be
        needed.

    4   Obtain test certification on internal wiring from professional engineer                  1 calendar day     BND 0
        Agency : Certified professional engineer (PE)
        A registered professional engineer (PE) will carry out the internal wiring tests with
        the presence of the electrical contractor who did the installation of the electrical
        wiring and applied for power supply on behalf of the client. The internal wiring
        inspection will take around a day depending on the size of the warehouse.
        Among other things, the PE has to verify/certify the cable size used, the depth of
        the cable laid, the trench routing and whether is complies with DES
        requirements.

        The professional engineer (PE) is a chartered engineer who needs to be
        registered with the Board of Architects, Professional Engineers and Quantity
        Surveyors (BAPEQS) under the Ministry of Development.

5       Obtain approval for permanent supply and electricity turn-on                             7 calendar days    BND 1,650
        Agency : Department of Electrical Services
        The contractor must submits a test certification report by a Professional Engineer
        and an occupation permit online via OneBiz. DES will then process to check the
        documents, and issue an electronic bill through OneBiz. The payment can be
        made online or by cash at the Business Support Centre, after which the approval
        of permanent supply will be given.

Takes place simultaneously with previous procedure.

                                                                                                                                       Page 19
Doing Business 2019           Brunei Darussalam

 Details – Getting Electricity in Brunei Darussalam – Measure of Quality

                                                                                                                           Answer

 Reliability of supply and transparency of tariff index (0-8)                                                              7

 Total duration and frequency of outages per customer a year (0-3)                                                         3

    System average interruption duration index (SAIDI)                                                                     0.5

    System average interruption frequency index (SAIFI)                                                                    0.4

    What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI             1.0

 Mechanisms for monitoring outages (0-1)                                                                                   1

    Does the distribution utility use automated tools to monitor outages?                                                  Yes

 Mechanisms for restoring service (0-1)                                                                                    1

    Does the distribution utility use automated tools to restore service?                                                  Yes

 Regulatory monitoring (0-1)                                                                                               0

    Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of      No
    supply?

 Financial deterrents aimed at limiting outages (0-1)                                                                      1

    Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages              Yes
    exceed a certain cap?

 Communication of tariffs and tariff changes (0-1)                                                                         1

    Are effective tariffs available online?                                                                                Yes

    Link to the website, if available online                                                                               http://des.gov.bn/Site
                                                                                                                           Pages/Electricity%20
                                                                                                                           Tariff.aspx

    Are customers notified of a change in tariff ahead of the billing cycle?                                               Yes

Note:

If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.

If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.

If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.

                                                                                                                                                    Page 20
Doing Business 2019           Brunei Darussalam

     Registering Property

This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in May 2018. See the methodology for more information.

 What the indicators measure                               Case study assumptions

Procedures to legally transfer title on                  To make the data comparable across economies, several assumptions about the
immovable property (number)                              parties to the transaction, the property and the procedures are used.

• Preregistration procedures (for example,               The parties (buyer and seller):
  checking for liens, notarizing sales agreement,
  paying property transfer taxes)                        - Are limited liability companies (or the legal equivalent).
                                                         - Are located in the periurban area of the economy’s largest business city. For 11
• Registration procedures in the economy's largest       economies the data are also collected for the second largest business city.
  business city.
                                                         - Are 100% domestically and privately owned.
• Postregistration procedures (for example, filling      - Have 50 employees each, all of whom are nationals.
  title with municipality)                               - Perform general commercial activities.

Time required to complete each procedure                 The property (fully owned by the seller):
(calendar days)
                                                         - Has a value of 50 times income per capita, which equals the sale price.
• Does not include time spent gathering                  - Is fully owned by the seller.
  information                                            - Has no mortgages attached and has been under the same ownership for the past
• Each procedure starts on a separate day -              10 years.
  though procedures that can be fully completed          - Is registered in the land registry or cadastre, or both, and is free of title disputes.
  online are an exception to this rule                   - Is located in a periurban commercial zone, and no rezoning is required.
                                                         - Consists of land and a building. The land area is 557.4 square meters (6,000
• Procedure is considered completed once final           square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
  document is received
                                                         located on the land. The warehouse is 10 years old, is in good condition, has no
• No prior contact with officials                        heating system and complies with all safety standards, building codes and legal
                                                         requirements. The property, consisting of land and building, will be transferred in its
Cost required to complete each procedure (% of           entirety.
property value)                                          - Will not be subject to renovations or additional construction following the purchase.
• Official costs only (such as administrative fees,      - Has no trees, natural water sources, natural reserves or historical monuments of
  duties and taxes).                                     any kind.
                                                         - Will not be used for special purposes, and no special permits, such as for
• Value Added Tax, Capital Gains Tax and illicit         residential use, industrial plants, waste storage or certain types of agricultural
  payments are excluded                                  activities, are required.
                                                         - Has no occupants, and no other party holds a legal interest in it.
Quality of land administration index (0-30)

• Reliability of infrastructure index (0-8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)

                                                                                                                                                     Page 21
Doing Business 2019      Brunei Darussalam

Registering Property - Brunei Darussalam

       Indicator                                            Brunei                East Asia &           OECD high   Best Regulatory
                                                            Darussalam            Pacific               income      Performance

    Procedures (number)                                     7                     5.4                  4.7          1 (4 Economies)

    Time (days)                                             298.5                 72.6                 20.1         1 (New Zealand)

    Cost (% of property value)                              0.6                   4.5                  4.2          0.0 (Saudi Arabia)

    Quality of the land administration index (0-30)         18.0                  16.3                 23.0         None in 2017/18

  Figure – Registering Property in Brunei Darussalam and comparator economies – Ranking and Score

                                                        DB 2019 Registering Property Score

                     0                                                                                   100

                                                                                    80.80: China (Rank: 27)

                                                                                   80.38: Malaysia (Rank: 29)

                                                                    61.67: Indonesia (Rank: 100)

                                                                57.56: Regional Average (East Asia & Pacific)

                                                                57.56: Philippines (Rank: 116)

                                                         51.48: Brunei Darussalam (Rank: 142)

Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These
scores are the simple average of the scores for each of the component indicators.

  Figure – Registering Property in Brunei Darussalam – Procedure, Time and Cost

                                                      Time (days)         Cost (% of property value)
                                                                                                                                         0.7

               250                                                                                                                       0.6

                                                                                                                                               Cost (% of property value)
                                                                                                                                         0.5
               200
 Time (days)

                                                                                                                                         0.4
               150
                                                                                                                                         0.3

               100
                                                                                                                                         0.2

               50
                                                                                                                                         0.1

                0                                                                                                                        0
                         1           *2                 3                    4                   *5             6            7
                                                                    Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.

                                                                                                                                                                            Page 22
Doing Business 2019                     Brunei Darussalam

Figure – Registering Property in Brunei Darussalam and comparator economies – Measure of Quality

              30                                                                                    27.5

              25                                     23.7

Index score
              20              18.0
                                                                                                                                              16.3
                                                                           14.5
              15                                                                                                         12.5

              10

                  5

                  0

                        Brunei Darussalam           China                Indonesia                 Malaysia            Philippines      East Asia & Pacific

Details – Registering Property in Brunei Darussalam – Procedure, Time and Cost

  No.                 Procedures                                                                              Time to Complete       Associated Costs

1                     Checking for encumbrances by Lawyer                                                     1 day                  BND 8; (BND 8 (BND
                      Agency : Land Office                                                                                           3 for searching on the
                      The lawyer acting on behalf of both seller and buyer will do a land search. The                                property, buyer, and
                      lawyer will verify that the seller is rightful owner and is entitled to sell the
                                                                                                                                     seller plus BND 5 for
                      property. In order to do that, it is common to request a search not only for the
                                                                                                                                     survey plan extract))
                      property, but also for the seller and the buyer(that is, a search in which any
                      property rights registered under the name of the seller is listed). This is done
                      because in Brunei there are restrictions on the number of properties that
                      someone can own. If all the information has been computerized, then the results
                      can be obtained in one day. In this case, the Lands Department gives a computer
                      printout of the information requested. On the contrary, the results of the search
                      can take more time.

                      It is also common to ask for a survey extract of the property at the Lands
                      Department.

              2       Lawyer conducts a winding up search at the Court                                        Less than one day,     BND 2; (BND 2 (BND
                      Agency : High Court                                                                     online                 1 per name))
                      The lawyer conducts a search at the High Court to determine whether any of the
                      parties involved in the transaction has had a bankruptcy/winding up case or has
                      any pending cases that could affect the property. Since 2016 this search can be
                      done online, purchasing a ticket to search for a limited amount of time. Most of
                      the records since 2005 are available. If the search would involve a case prior to
                      that, the lawyer would have to request this information physically at the court.
                      Before you had to fill in a form and provide a name plus an identifier. Now you
                      can search this information online. This information cannot be obtained at the
                      Lands Department.

3                     Sale-purchase agreement is signed                                                       1 day                  BND 200; (BND 100 -
                      Agency : Land Office                                                                                           300)
                      The sale-purchase agreement is signed by both parties in the lawyer's office. The
                      Memorandum of Transfer (MOT) is prepared at the same time.

                      The cost of this procedure corresponds to the search services provided by the
                      lawyer. If the lawyer would draft the sale and purchase agreement, the fee
                      schedule of the Legal Profession Act (Chapter 132), Advocates and Solicitors
                      (Remuneration) Rules would apply.

                                                                                                                                                              Page 23
Doing Business 2019           Brunei Darussalam

4       Submit application via Lands Department in order to obtain approval for                280 days   BND 2; (BND 1 for
        the Memorandum of Transfer by "His Majesty in Council"                                            each form)
        Agency : Land Office
        Local companies in Brunei cannot own land. However, they can register long
        term lease interests over land for a maximum period of 60 years. In this case, the
        company would register and endorsement to the original title, securing its
        sublease right. This lease interest is transferrable and can be used as collateral.
        Both forms "A" & "B" must be completed and submitted to the Land Office. The
        Land office will give an appointment to return and sign the MOT, usually within 2
        weeks. Every transfer in Brunei Darussalam requires the approval of "His
        Majesty in Council" which is a council of officials representing the Sultan. The
        petition to transfers follows a three-step process. First, the Lands Department will
        check that all the information has been filled in appropriately, and will check the
        technicalities of the transactions, issuing a report to the Ministry of Development.
        The Ministry would then review this information and would review whether the
        transaction is in line with the land policies of the government, submitting a report
        to His Majesty in Council if the transaction can proceed.
        Upon approval of the MOT, the Land office will assess the market value of the
        property and inform the applicant of the amount to be paid as stamp duty, the
        registration fee and land tax must be paid. The proof of payment must be
        provided to the Land Office.
        The procedure to register an ownership transfer and a lease interest is the same.
        However, the time to obtain the approval of His Majesty in Council differs. On
        average, the approval of a lease interests takes between 8 to 12 months
        (however, in some cases it can take up to 24 months). Property transfers
        between local citizens take between 6 to 8 months to receive an approval.

    5   Visit of a property by the Land Office                                                 1 day      no charge
        Agency : Land Office
        An inspector from the Land office will visit the property with the purpose of
        determining the actual stamp duty due, and identifying the activities carried out in
        the building.

6       Pay stamp duty and sign the MOT at the Lands Department                                1 day      BND 12,457; (BND 6
        Agency : Land Office                                                                              for every BND 1000
        The Seller's nominee and the Buyer's nominee will attend to the Land Office to                    of the assessed value
        sign the Memorandum of Transfer (MOT), and the Full Payment Form in the
                                                                                                          of the property +
        presence of an officer from the Land Office.
                                                                                                          Registration fee of
                                                                                                          BND 1 + Land Tax
        Since in the case study there will be no rents paid monthly, the stamp duty would
        be calculated on the total consideration of the lease (which equals the property                  BND 150 per quarter
        value).                                                                                           acre for commercial
                                                                                                          land per year (not
                                                                                                          counted in
                                                                                                          estimations))

7       Register property transfer at the Land Office/Registry                                 15 days    no charge
        Agency : Land Office
        The final transfer is registered at the Land Registry and a new endorsement on
        the Title is issued recognizing the lease interest of the company on the property
        (in case of a property transfer, a new Title would be issued).

Takes place simultaneously with previous procedure.

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