Bedb.sme.Guide.book(2012)

1Content

Message from Dato Paduka Awang Haji Ali bin Apong 2Deputy Minister at Prime Ministers Office andChairman of The Brunei Economic Development Board (BEDB)

Acknowledgement Quotes 3

Interview with Kenny Yap Kim Lee 5Executive Chairman & Managing Director, Qian Hu Corporation Limited, Singapore.

Support Matrix 7

Grant SchemesYouth Skills Development Programme (YSDP) Micro Grant 10Village Enterprise Financial Grant 11Enterprise Technical Assistance Scheme (ETAS) Grant 12Local Enterprise Application & Products (LEAP) Grant 13Brunei Research Incentive Scheme (BRISc) 15AITI Grant for Development of Local ICT & Digital Media Industries 16Training & Employment Scheme (SLP) 18

Subsidy SchemesStandards & Quality Certification Programme 20Promotion & Marketing Services 22AITI ICT Competency Programme 24

Loan SchemesEnterprise Expansion Programme (EEP) Financing 26Microcredit Financing Scheme (MFS) 27Enterprise Facilitation Scheme (EFS) 28Export Refinancing Scheme (ERS) 29

Investment Fund SchemesPromising Local Enterprise Development Scheme (PLEDS) Investment Fund 32The Future Fund 33Accel-X Investment Fund 34

Tax Incentives 36Intellectual Property Rights Protection 39

Other BEDB SchemesCompetency Building ProgrammesiCentre Incubation Programme 42SME Dialogue and Workshop 44Financial Management Programme 45

Entrepreneurship ProgrammesBrunei Hackathon 46Entrepreneurship@Campus 47Junior Achievement (JA) Pilot Project 48Creative Arts Facilities (CRAFT) 49

Establishing A Business 50Acknowledgments 53

2Message From:

Dato Paduka Awang Haji Ali Bin ApongDeputy Minister at Prime Ministers Office and Chairman of The Brunei Economic Development Board (BEDB)

Entrepreneurship and Local Business Development are key drivers for the long term economic growth of Brunei Darussalam. Alhamdullilah, Brunei Darussalam has one of the highest quality of life and per capita income in Asia today; but in an increasingly competitive world, we cannot afford to be complacent. In this fast changing global environment, we need to invent and innovate so as to create new businesses as a source of wealth and job creation. Local businesses need to differentiate and adapt so as to seek out new opportunities locally and internationally to expand and grow. The Government of His Majesty the Sultan and Yang Di Pertuan of Brunei Darussalam has put in place several initiatives in the form of grants, loans, venture capital, tax incentives and business-friendly regulations such as Patent Act and Bankruptcy Act to enable new start-ups and to support existing local businesses. Through these initiatives, we expect local businesses to also play their part as responsible corporate citizens by employing locals and acquiring their own expertise and technologies in manufacturing or services. Entrepreneurs and local businesses must embrace the need for proper financial management credible book-keeping and financial accounts. Understanding and managing Profit and Loss and Cash Flows are crucial to ensure business sustainability and growth. Whether companies are registered as Sdn Bhd (or limited liability companies), we strongly encourage annual accounts to be audited by an external auditor to verify and ensure integrity in the financial reports. Even profitable companies can fail if cash flow are not managed properly.

Local businesses are also expected to adopt and practice good corporate governance in order to succeed, especially in a regional or international arena. In Brunei Darussalam, where a large number of local companies are family-run, it is imperative for them to consider outside professional management so as to take their company to the next level. Kenny Yap, Executive Chairman & Managing Director of Qian Hu Corporation Ltd, Singapore, the only ornamental fish service provider listed on the Mainboard of the Singapore Stock Exchange (see interview on page 5) stressed the importance of House Rules which sets out the responsibility and accountability of those involved in the business. Internal processes and information must be transparent so as to ensure integrity and promote ethical behaviour for responsible decision-making. Good Corporate Governance is the cornerstone of any successful business. It is one of the key criteria that determine whether a company or business is bankable or investable. It is my hope to, Insya Allah, one day see a Brunei company grow into an international company listed on one of the stock exchanges.

3Acknowledgement Quotes:

Dayang Hajah Normah Suria Hayati bintiPehin Jawatan Dalam Seri Maharaja DatoSeri Utama (Dr.) Haji Awang Mohd. Jamil Al-SufriPermanent Secretary, Ministry of Industry andPrimary Resources

Developing SMEs continues to be an important development agenda in Brunei Darussalam as they have the potential to create employment and new sources of economic prosperity. To realize their potential, government and non-government organizations have formulated and implemented programs and projects aimed at enhancing business start-up, growth and competitiveness.

This publication on Assistance Schemes for Business Start-ups and SMEs initiated by the Brunei Economic Development Board is a commendable effort that brings together all the financing schemes currently available to Brunei SMEs provided by all government bodies. It reflects our commitment to align SME development programs and services.

I take this opportunity to re-iterate my Ministers call at the 2011 Brunei Business Forum which urges us to intensify efforts at formulating better SME policies, new innovative support programs and more efficient procedures. This is to realize our common aspirations of continued growth and increase in the number and quality of SMEs so as to penetrate the regional, international or global markets. And, by doing so, we can together advance 2010-2020 as the Decade to Spur SME Development in Brunei Darussalam.

4Acknowledgement Quotes:

Dayang Hajah Ning-Lela bte Dato PadukaHaji MohammadPermanent Secretary, (Performance) Ministry Of Finance

Awang Haji Yahkup bin Haji MenudinChief Executive, Authority for Info-Communications Technology Industry of Brunei Darussalam (AITI)

This booklet is certainly a step in the right direction to educate and inform everyone not only SMEs of the financial opportunities available in setting up a business. Well done to the BEDB in making this effort of compiling their financial schemes which is certainly driving the message to support SMEs and at the same time making the environment more conducive for existing and new entrepreneurs.

The journey forward for Brunei SMEs is both challenging and exciting.I am confident that with co-operation from all relevant agencies, the BEDB will uncover new and upcoming talents and innovative entrepreneurs whose ideas may not flourish without financial schemes such as this.

AITI is very pleased to take part in the process of developing this guidebook which is one of the initiatives by BEDB to support SMEs access to financial assistance. We believe that SMEs are the engine for the future economic growth of Brunei Darussalam and increasingly becoming a vital source for social and economic stability.

In AITI, we are always keen to grow and develop our SMEs within the ICT industry through various initiatives and programs including the provision of grant scheme in the form of financial assistance.

We hope that you will find this guidebook useful and practical in your continuous endeavours to grow and enrich your businesses. We look forward to see this guidebook making a difference in your ability to access financial support in the near future.

5Interview with:

Kenny Yap Kim LeeExecutive Chairman & Managing Director,Qian Hu Corporation Limited, Singapore.

On Brunei businesses going internationalLife in Brunei is comfortable. Nobody wants to (get) out of that comfort zone by being different. I dont think many of the enterprises can survive with the small domestic market in Brunei. One of the ways they can be successful is perhaps if they move out of their comfort zone, go to Singapore, go to Indonesia, go to Malaysia, I dont know, go somewhere else to (make) mistakes, to cry, to sweat, to bleed, and then come back to create a regional competitor.

On managing a family businessThe right attitude about running a family business is they have to trust you. (There are) a few things that you can do to have the trust and bond them together. First you have to be very, very transparent about the things that you do. Put everything on the table and explain to them thoroughly, so that they can understand every sense and everything that you want to do, so that there is no, you know, skeletons in the closet kind of thing. The second thing is perhaps you might have to sacrifice yourself first, because if you think that you can contribute more, do more, but not ask for more in return. (For this reason) we have this kind of policy like everybody started with S$500. Although Im the only graduate among my generation, I received the same salary as them. Every family-run business will have its house rules. House rules are extremely important because without any principle, petition being set, nobody knows what to do, nobody knows which direction they want to go and nobody obeys certain sets of rules, so house rules are very important when you want to create or maintain some family-run business. So transparency, and sacrifice yourself first to try to take care of other peoples needs and then set some very clear house rules, I think those are some of the key attributes of running a family-run business initially.

On engaging professionals in a family businessWhen youve depleted the use of all the good people within the family members and you still want to grow the company that is the point that you have to change from a family-run to professionally run, because you have to hire outside professionals to come in and then you have to come up with clear company rules based on merit rather than relationships, and you want people who contribute towards that. So its a totally different remuneration, or policies that you have to set up when outside

Qian Hu Corporation Limited, Singapore, is the only integrated ornamental fish service provider listed on the Mainboard of the Singapore Exchange. Kenny was a guest speaker at the SME Signature Dialogue organized by BEDB in April 2011. Kenny shared his thoughts on building a successful business.

6professionals are involved. Its never about paying more; its about the values or the things that they contribute more to the company. Who says we underpay our family members? If we underpay ourselves then why do we want to do business? When you go to the management, you have to have the right concept of the management. When you deal with personal relationships or within your family members then you have to use more of the emotional side to manage (things). You have to balance the two, which is one of the things good professional management can bring, and at the same time taking care of more emotional aspects which is a critical aspect for running a family business. So there are two different aspects of things you have to balance.

On creating differentiationIf any business is to survive, to sustain, they must have certain kinds of differentiation. (Whether) its services, or products, if you cannot find the differentiation, I think most of the time, youll be competing on prices. Like my father always says, If you do business with poor people you will be forever poor. The poor people were talking about are those people who cannot pay the price so they always look for cheap things. And then you always produce cheap things to fulfill them, youll forever be (catering) to the poor. Differentiation actually gives you the price premium you know? To actually have a respectable profit margin. To sustain a business I always believe in three things: first - respectable profit margin, second - cash flow, third - efficiency and productivity. If you can have these three things mastered in managing a company, I think your company can sustain through your generation.

* The interview with Kenny Yap was conducted by the Brunei Times and published in May 2011.

BEDB Schemes

Start-Up

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Req

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Micro Business

Youth Skills Dev. Program (YSDP)

Micro Grant Scheme(refer to page 10)

Village EnterpriseGrant Scheme

(refer to page 11)

Enterprise Technical Assitance Scheme (ETAS)Grant Scheme

(refer to page 12)

Local Enterprise Application Program (LEAP)Grant Scheme (For Innovation)

(refer to page 13-14)

Brunei Research Incentive Scheme (BRIsc)(refer to page 15)

Enterprise Expansion Program (EEP) Loan Scheme(refer to page 26)

PLEDS CO-Investment Fund(Refer to page 32)

Accel-X Venture Capital Fund (ICT-related only)(Refer to page 34)

iCentre Incubation Program(Refer to page 42)

Creative Arts Facilities(Refer to page 49)

Brunei-owned registered company

Local employment/local content

Basic Vocational Skills



Proper financial statement

Strong management team

Has value-adding products/services





Products/services ready for export

Has value-adding products/ services

Established CompaniesSmall & MediumEnterprises

Growth Internationalise

7BEDB Schemes

Start-Up

Sta

ges

ofB

usin

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Siz

e of

Bus

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sLo

an

Sch

eme

Inve

stm

ent/

Equi

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rgra

ms

Bas

ic

Req

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men

tsG

rant

Sch

eme

Micro Business

Youth Skills Dev. Program (YSDP)

Micro Grant Scheme(refer to page 10)

Village EnterpriseGrant Scheme

(refer to page 11)

Enterprise Technical Assitance Scheme (ETAS)Grant Scheme

(refer to page 12)

Local Enterprise Application Program (LEAP)Grant Scheme (For Innovation)

(refer to page 13-14)

Brunei Research Incentive Scheme (BRIsc)(refer to page 15)

Enterprise Expansion Program (EEP) Loan Scheme(refer to page 26)

PLEDS CO-Investment Fund(Refer to page 32)

Accel-X Venture Capital Fund (ICT-related only)(Refer to page 34)

iCentre Incubation Program(Refer to page 42)

Creative Arts Facilities(Refer to page 49)



Basic Vocational Skills





Has value-adding products/services





Products/services ready for export

Has value-adding products/ services



8Other Schemes

Start-Up

Sta

ges

ofB

usin

ess

Siz

e of

Bus

ines

sLo

an

Sch

eme

Inve

stm

ent/

Equi

ty F

unds

Com

pete

ncy

&

Trai

ning

Prg

ram

Micro Business

MIPR Micro-Credit Financing Scheme (MFS)

(refer to page 27)

The Future Fund(ICT-related only)(refer to page 33)

MIPR Enterprise Facilitation Scheme (EFS)

(refer to page 28)

MIPR Export Refinancing Scheme (ERS)

(refer to page 29)

JPKE Training and Employment Scheme(Skills Training, On the Job Training and Employment

(Refer to page 18)



Sub

sidy

Sch

emes

MIPR Standards and Quality Certification Program(refer to page 20)

MIPR Promotion and Marketing Service(refer to page 22)

AITI ICT Competency Program(refer to page 24)

Gra

nt

Sch

eme AITI Grant for Development of Local ICT & Digital Media Industries

(refer to page 16)

Other Schemes

Start-Up

Sta

ges

ofB

usin

ess

Siz

e of

Bus

ines

sLo

an

Sch

eme

Inve

stm

ent/

Equi

ty F

unds

Com

pete

ncy

&

Trai

ning

Prg

ram

Micro Business

MIPR Micro-Credit Financing Scheme (MFS)

(refer to page 27)

The Future Fund(ICT-related only)(refer to page 33)

MIPR Enterprise Facilitation Scheme (EFS)

(refer to page 28)

MIPR Export Refinancing Scheme (ERS)

(refer to page 29)

JPKE Training and Employment Scheme(Skills Training, On the Job Training and Employment

(Refer to page 18)



Sub

sidy

Sch

emes

MIPR Standards and Quality Certification Program(refer to page 20)

MIPR Promotion and Marketing Service(refer to page 22)

AITI ICT Competency Program(refer to page 24)

Gra

nt

Sch

eme AITI Grant for Development of Local ICT & Digital Media Industries

(refer to page 16)

GRANTSCHEMES

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Grant Schemes

Youth Skills Development Programme (YSDP) Micro Grant

Objective:A grant scheme set up to encourage and assist youths to kick start their own micro businesses.Eligibility: Local youths in Brunei Darussalam, Currently unemployed/has no fixed income, Acquired vocational and technical skills or competencies in the area of

intended business.

Maximum amount allocated per recipient: B$2,000 worth of equipment purchase (with potential of additional B$2,000 for expansion on a case to case basis).Features of Grant: Non-repayable, Applicants can be either individuals or group of 2 people.

Eligible expenses:Purchase of equipment/machinery for intended business

Participants must undergo: Relevant workshops and trainings (before disbursement of grant), Financial Management Program

Administered by:Brunei Economic Development Board (BEDB)

Corporate sponsors: Alcoa FoundationCiti FoundationBank Islam Brunei Darussalam

How to apply:For more information or further enquiries, please contact:Brunei Economic Development BoardTel : +673-2230111E-mail : [email protected] : www.bedb.com.bn

Bantuan ini merupakan satu inisiatif yang sangat berguna bagi membantu mereka yang ingin berdikari dan ingin menjalankan perniagaan tetapi tidak mempunyai sumber yang cukup untuk mengambil peluang tersebut Hamizah Muslim, YSDP Grant Recipient, 2009 Intake. Type of Business: Tailoring.

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Grant Schemes

Village Enterprise Financial GrantObjective:A grant scheme to assist in the development and commercialization of village products to support the One Village, One Product initiative under the Ministry of Home Affairs.

Eligibility: Village and Mukim Consultative Councils, projects of which must be

endorsed by the District Office/Ministry of Home Affairs under the One Village, One Product (OVOP),

Detailed description of the products/services and budget/revenue forecasts,

Products/Services must have commercial value and availability of raw materials from natural resources.

Maximum amount allocated per recipient village:B$50,000.

Features of Grant: Non-repayable, No collateral or guarantor required.

Eligible expenses: Purchasing of equipment/machinery/tools Engagement of external expertise Training and skills upgrading

Participants must undergo:Financial Management Program


Corporate sponsors:UEM Builders Sdn BhdPetroleum Geo Services Bank Islam Brunei Darussalam


Skim bantuan yang disalurkan kepada Majlis Perundingan Mukim Tanjong Maya melalui program Village Enterprise ini dijangka akan membantu meningkatkan kapasiti dan kualiti penghasilan minyak kelapa dara yang diusahakan oleh pengusaha-pengusaha di Mukim ini bagi memenuhi permintaan orang ramai yang semakin meningkat. Awg Hj Abd Wahab bin Apong, Penghulu Mukim Tanjong Maya.

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Grant Schemes

Enterprise Technical Assistance Scheme(ETAS) Grant

Objective: A grant scheme to help companies that intend to internationalise, strengthen their competencies as well as overcome common market entry cost barriers.

Eligibility: Companies are registered in Brunei as Sendirian Berhad. Companies are in active business operation for minimally 5 years. Companies have progressive growth based on annual revenue in last 3

years. Companies have readily available products and services.Maximum amount allocated per recipient company: B$300,000

Features of Grant:The grant will be offered on a cost sharing basis; where up to 50% of the approved eligible costs will be funded by the government on reimbursement basis.

Eligible expenses: Hiring of consultants, Hiring of professionals, Third party costs associated with internationalisation.


How to apply:For more information or further enquiries, please contact:Brunei Economic Development BoardTel : +673-2230111E-mail : [email protected] Website : www.bedb.com.bn

The best aspect of BEDB is not just the financial aid but the intellectual strategic business guidance from the team. Lily Chiam, Founder, Expression Music, ETAS Grant recipient.

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Grant Schemes

Local Enterprise Application & Products(LEAP) Grant

Objective: A grant scheme to provide financial assistance for developing prototypes of new products and applications that have innovative technological content, commercial practicality and export potential.Eligibility:

Brunei registered SMEs - Bruneian-owned (Citizens, PR) companies. - At least 50% Bruneian-owned companies. - No of Employees less than 100 * Individuals need to form a company Students and researchers of Institute of Higher Learnings (IHL) - IHL (Institute of Higher Learning)s students and staffs Innovative Technology

- ICT, Bio-technology, High-growth sectors, Agriculture & Aquaculture, Engineering, etc

- Locally developed or customised foreign-owned technology - IP generated - Capitalising on existing available resources in Brunei Strong business plan with commercial applications in private

and/or public sector - Readily-available Market - Risks identified Committed and qualified team - At least 10% of knowledge workers are local - Have required expertise - Adequate resources - Development team based in Brunei Potential end user identified is an advantage - Committed client/user (Letter of Intent) Export-potential is an advantage

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Grant Schemes

Maximum amount allocated per recipient:B$150,000

Features of Grant:Depending on area applied for by applicants.

Eligible expenses: Manpower and training costs, Hardware, software, IP costs, Rental on 3rd party premises, Market research.

Participants must undergo: Financial Management Workshop Intellectual Property Workshop

Administered by: Brunei Economic Development Board (BEDB)


Without BEDBs assistance, my company would not be where it is now, with a promising future in a niche market that requires a tremendous amount of hard work and reasonable funding to take the vision into a reality. BEDB has continued to give the moral support and encouragement, and this has given me the confidence to enhance my business venture. Zainal Ibrahim, Manager of Batik Desamas, LEAP Recipient.

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Grant Schemes

Brunei Research Incentive Scheme (BRISc)

Objective: A cost-sharing grant to support private sector Research and Development (R&D) activities and attract foreign companies to conduct R&D activities in Brunei and set up lab facilities in Brunei.

Eligibility:Locally-registered or foreign companies interested in conducting R&D in Brunei.

Maximum amount allocated per recipient company: BND$5 million

Features of Grant:The grant will be offered on a cost sharing basis as below:

Cost-Sharing (Govt:Company)

Local companies 80:20

Foreign companies collaborating with an IHL/local government agency

70:30

Foreign companies who are not collaborating with an IHL/local government agency

50:50

Eligible expenses: Manpower, Training expenses, Equipment, Professional services / consultancy, Rental on 3rd party premises.

Administered by:Brunei Economic Development Board (BEDB) and Brunei Research Council (BRC)

How to apply:For more information or further enquiries, please contact:Brunei Economic Development BoardTel : +673-2230111Website : www.bedb.com.bn

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Grant Schemes

AITI Grant for Development of Local ICT &Digital Media Industries

Objective: A grant provided for development of Brunei-Made and local contents of ICT and Digital Media products. (Brunei-Made is defined as products and/or solutions and/or applications that are made, developed, created and/or assembled in Brunei by citizen(s) and/or permanent resident(s) of Brunei Darussalam)

Four grant types are offered, namely; Development for developing prototypes or concept testing; Enhancement for improving and upgrading existing products; Ownership for obtaining certification and quality management

systems; and Marketing for marketing and improving existing packaging, design

or labeling.

Eligibility: Business must be registered or incorporated in Brunei Darussalam for

at least 6 months, Business must be at least 50% locally owned, Have at least 10% local IT skilled work force, Have sufficient current assets to pay existing debts/liabilities, Satisfy the Start-up/Paid-up capital requirements, Have not committed an act of bankruptcy/winding up proceedings

within the last 2 years, Have a training program in place for knowledge transfer, Hold valid licenses required for their business operations, Principal business activities must be ICT related.

Maximum amount allocated per company:B$250,000 (for a combination of more than one type of grant with maximum duration up to 24 months only).

Administered by:Authority for Info-Communications Technology Industry of Brunei Darussalam (AITI).

How to apply:For more information or further enquiries, please contact:Authority for Info-communications Technology Industry of Brunei Darussalam (AITI)Darussalam (AITI)Tel : +673-2323232E-mail : [email protected] : www.aiti.gov.bn

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Grant Schemes

Eligible expenses:

Type of Grant ICT IndustryDigital Media

industry

Development

proof of concept including research, design, development services and materials;

prototype development including research, design, development testing services and materials;

cost of process equipment development i.e. hardware and software;

test and evaluation of product/process and user trial; and

programmer, designer and consultancy fees.

cost of process equipment ie. hardware and software;

pre-production cost including scripting, storyboarding, characterisation, art direction, cinematography, research & development;

production cost including CGI artist, and animator; and

post-production cost including compositing, editing, sound effects, soundtrack and translator.

Enhancement

cost of machinery and equipment necessary for the businesses to improve their production capacity and also reduce cycle-time that will in turn increase the quality of the products

hardware and software; and

programmer, designer and consultancy fees.

hardware and software; production cost

including CGI artist, and animator; and

post-production cost including compositing, editing, sound effects, soundtrack and translator.

Ownership

Trademarks; Service marks; Copyright; Patent; Industrial Design; Commercial names;

and Intellectual Property

Rights (IPR) in Brunei Darussalam and/or abroad.

Trademarks; Copyright; Patent; Commercial names;

and Intellectual Property

Rights (IPR) in Brunei Darussalam and/or abroad.

Marketing

costs and services for designing, packaging, marking and labelling;

marketing costs and materials (including marketing personnel); and

purchase of related machinery and equipment.

costs and services for designing, packaging, marking and labelling;

marketing costs and materials (including marketing personnel); and

purchase of related machinery and equipment.

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Grant Schemes

Training & Employment Scheme (SLP)

Objective: A grant that helps companies defray the training costs of their employees that has limited skills and experience as well as to retain workers.

Eligibility: Employers/companies wishing to apply for the scheme, may submit a

project proposal paper to JPKE. Proposal must contain:

- Profile of company (employer),- Type of occupation offer,- No. of job vacancies available,- Salary,- Venue of the training,- Type or stages of skills required,- Cost of training (if any),- Who provides the training/ training provider.

Employers and companies will not be considered if: - the company already has sufficient number of local employees.- the company is either no longer in operations or is out of contract- misuse of power by company against its employees.- the company affected by unforeseen circumstances which result in

huge losses and declared bankrupt.

Maximum amount allocated per recipient company: Depending on type of training.

Eligible expenses:1) Skills Training

Government can share costs of training Brunei citizens in specific skill sets.

2) On-the-Job TrainingGovernment provides 65% of allowance for 6 months attachment duration.

3) EmploymentGovernment pays B$2500 per employee as motivational allowance over a 2 year period.

Administered by:Jabatan Perancangan dan Kemajuan Ekonomi (JPKE).

How to apply:For more information or further enquiries, please contact:Jabatan Perancangan dan Kemajuan Ekonomi (JPKE)Tel : +673-2233344E-mail : [email protected] : www.depd.gov.bn

SUBSIDY SCHEMES

Standards & Quality Certification Programme

Objective: This program aims: To ensure products manufactured comply with required standards

needed for export, To ensure that locally manufactured products are safe for use or

consumption.

Eligibility: Companies registered or incorporated in Brunei Darussalam, At least 30% of company equity owned by Brunei Citizens, Sectors related to the food or manufacturing sectors, Company owns a factory or a production premise approved by relevant

Government authority, Product owned or made in Brunei Darussalam, Company that was or currently under Pre-requisite HACCP program will

be given priority, Company in food sector must have an employee with appropriate

knowledge or competency on food technology, food safety, quality assurance and quality control and other related fields,

Company in manufacturing sector must have an employee with appropriate knowledge and competency such as on Good Manufacturing

Practice (GMP), Health Safety and Environment (HSE) and other related fields,

Availability of an updated quality manual and complete record of Good Manufacturing Practice (GMP) or Prerequisite Programs (PRP) will be an advantage,

Company must have a good and successful business and operational track record

Maximum amount allocated per recipient company: Depending on cost/type of certification, Full funding to obtain certification.

Eligible expenses: Consultancy, Training, Standard Certification (ISO, GMP & HACCP).

Administered by:National Standard Centre, Ministry of Industry and Primary Resources (MIPR).

Subsidy Schemes

20

How to apply:For more information or further enquiries, please contact:National Standards CentreMinistry of Industry and Primary Resources (MIPR)Tel : +673-4240069E-mail : [email protected] / [email protected] : www.bruneimipr.gov.bn

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Promotion & Marketing Services

Objective: An incentive to promote local products both at the domestic and

overseas markets through the participation of SMEs in various exhibitions, seminars or trade missions, with a view to support the development of exportable local products.

FOR LOCAL EXPOS

Eligibility: Companies registered or incorporated in Brunei Darussalam, At least 30% of company equity owned by Brunei Citizens, Product owned or made in Brunei Darussalam, Company should not have more than 100 number of employees.

Eligible expenses: Booth and Registration, Free participation in promotional events organized by the MIPR, Free listing of company name and product profile in promotion materials produced by MIPR.

FOR OVERSEAS EXPOSEligibility: Companies or business associations registered or incorporated in Brunei Darussalam, At least 30% of company equity owned by Brunei Citizens, Product owned or made in Brunei Darussalam, Company should not have more than 100 number of employees, Company owns a factory or a production premise approved by relevant

Government authority, High quality products with the appropriate standard certifications such

as Brunei Halal, Health Certificate, ISO 22000, Hazard Analysis Critical Control Point Certification(HACCP), Good Management Practice (GMP) and others,

Properly labeled & packaged products.

Eligible expenses: Participation in international trade fair and exhibition. Various incentives through sponsorships are given for: - Registration - Rental cost of booth space - Cost of advertisement in show directory - Cost of ticket or accommodation (whichever is higher) and for one person per company only. - Shipment of exhibit materials (not more than 150 kg per company) as an unaccompanied cargo. - Cost of interpreter service if required.

Subsidy Schemes

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Administered by: Ministry of Industry and Primary Resources (MIPR)

How to apply:For more information or further enquiries, please contact:Promotion and Marketing CentreMinistry of Industry and Primary Resources (MIPR)Tel : +673-2382822E-mail : [email protected] Website : www.bruneimipr.gov.bn

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Subsidy Schemes

AITI ICT Competency Program

Objective:A program that offers subsidized training courses to train the local citizens with the relevant ICT skills and knowledge, empower the non-ICT job seekers with basic IT literacy and upgrade SMEs employees with professional ICT certifications.

Under this program, AITI has appointed four (4) local training institutions namely: AT e-Knowledge Solutions, Infomars Training & Technology Solutions Sdn Bhd, iLM Academy and HAD Technologies. The training will be expectedto end inFebruary 2013.

Eligibility: The subsidy is eligible for Brunei citizens or permanent residents working

in the non-government agencies such as registered local SMEs or any member of the public above 17 years of age who is seeking for a job.

The participants can either opt for full-time or part-time courses depending on the training package offered.

Maximum amount allocated per recipient company: A minimum subsidy of 50% of the training fees to the eligible participants subject to the training course taken. These subsidies will be provided upon successful completion of the course.

Courses currently offered: Internet Computing & Core Certification (IC3) IC-Citizen Training & Certification, Managing & Maintaining a Microsoft Windows Server Environment 2008, CompTIA A+, CompTIA Network+, CompTIA Security +, Project Management Intermediate, MCTS: MS SQL Server 2008, Oracle Database 11g.

Administered by:Authority for Info-Communications Technology Industry of Brunei Darussalam (AITI).

How to apply:For more information or further enquiries, please contact:Authority for Info-communications Technology Industry ofBrunei Darussalam (AITI)Tel : +673-2323232E-mail : [email protected] Website : www.aiti.gov.bn

LOAN SCHEMES

26

Loan Schemes

Enterprise Expansion Program (EEP) Financing

Objective:Financing to assist small and medium size enterprises (SMEs) to expand their businesses through increasing their productivity and to groom future promising local enterprises to export and expand overseas.

Eligibility: Company must be registered with the Registrar of Companies and

Business Names, Have been in operation for at least two years, The company must be fully Bruneian owned, Company must demonstrate encouraging progress in their businesses

within last 12 months:- Growth in turnover (sales) - Number of clients/customers- Business coverage area

Must be willing to adopt proper financial reporting/accounting system, Products or services are commercially viable, Present realistic cash flow including ability to service the financing.

Maximum financing amount per business: B$15,000 (Maximum entitlement of up to 90% of the purchase price. 10% to be borne by the SME).

Features of Financing: Profit Margin : 0% Financing Tenure : 36 months Grace Period : Not more than 3 months Collateral : Machinery and equipment to be financed

Eligible expenses:Purchase or upgrade of machinery/equipments.

Administered by:Brunei Economic Development Board (BEDB).


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Loan Schemes

Microcredit Financing Scheme (MFS)

Objective:To assist local entrepreneurs to start and expand small scale business activities.

Eligibility: Citizen of His Majesty The Sultan and Yang Di-Pertuan of Brunei

Darussalam, Sole Proprietorship, Partnership or Private Limited Company (Sendirian

Berhad) registered in Brunei Darussalam, For Joint Venture, at least 30% equity capital owned by Citizen of His

Majesty The Sultan and Yang Di-Pertuan of Brunei Darussalam, Business must be operated in Brunei Darussalam, Entrepreneur need to possess business management skills and technical

expertise in the business or industry that is being pursued, Eligible for any type of business activity, Business under the SME category should not have more than 100

employees.

Maximum loan amount per company or enterprise: B$50,000

Features of Loan: Interest Rate : 4% per annum (Annual Reducing Balance) Loan Tenure : Maximum 5 years Grace Period : 3-12 months Type of Facilities : Term Financing, Overdraft, Letter of Credit, Bankers Guarantee Collateral : Personal Guarantor, Monthly Deposit, Companys Fixed Assets and other guarantees

Eligible expenses:Working Capital, Capital Assets / Expenditures and Purchases for Machineries, Equipment and other Capital Assets excluding purchase of land

Administered by:Ministry of Industry and Primary Resources (MIPR)

For more information or further enquiries, please contact:Ministry of Industry and Primary Resources (MIPR)Tel : +673-2333964 E-mail : [email protected] Website : www.bruneimipr.gov.bn

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Loan Schemes

Enterprise Facilitation Scheme (EFS)

Objective:To assist small and medium entrepreneurs (SME) to expand and develop their business activities and build their capacity to export.

Eligibility: Citizen of His Majesty The Sultan and Yang Di-Pertuan of Brunei Darussalam, Sole Proprietorship, Partnership or Private Limited Company (Sendirian

Berhad), For Joint Venture, at least 30% equity capital owned by Citizen of His

Majesty The Sultan and Yang Di-Pertuan of Brunei Darussalam, Business must be operated in Brunei Darussalam, Entrepreneur need to have business and management skills and technical

knowledge / expertise in the business or industry to be pursued, Eligible industries under this scheme are agriculture, fisheries, tourism,

manufacturing, construction and ICT, Business under the SME category should not have more than 100

employees.

Maximum amount allocated per recipient company: B$5 million

Features of Loan: Interest Rate : 4% per annum (Annual Reducing Balance) Loan Tenure : Maximum 10 years Grace Period : 3-12 months Type of Facilities : Fixed Loan, Overdraft, Letter of Credit, Bankers Guarantee Collateral : Property, Fixed Deposit, Bankers Guarantee, Companys Fixed Assets, Personal Guarantor and for other guarantees

Eligible expenses:Working Capital, Capital Assets / Expenditures and Purchases for Machineries, Equipment and other Capital Assets excluding purchase of land


How to apply:For more information or further enquiries, please contact:Ministry of Industry and Primary Resources (MIPR)Tel : +673-2333964E-mail : [email protected] : www.bruneimipr.gov.bn

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Loan Schemes

Export Refinancing Scheme (ERS)

Objective:Provides registered and certified exporters with short-term financing before and after making delivery. The pre-shipment facility helps exporters to finance the purchase of items such as raw materials and general costs while the post-shipment facility help to defray expenses of delivery.

Eligibility: Citizen of His Majesty The Sultan and Yang Di-Pertuan of Brunei

Darussalam Sole Proprietorship, Partnership or Private Limited Company (Sendirian

Berhad) Company is registered as exporter. (Classification either as direct

exporter or indirect exporter will be determined by MIPR) For Joint Venture, at least 30% equity capital owned by Citizen of His

Majesty The Sultan and Yang Di-Pertuan of Brunei Darussalam Business must be operated in Brunei Darussalam Eligible industries under this scheme are agriculture, fisheries, tourism,

manufacturing, construction and ICT. Business under the SME category should not have more than 100

employees

Maximum amount allocated per recipient company: Minimum BND50,000/maximum BND500,000

Features of Loan: Interest Rate : 4% per annum Loan Tenure : Pre-shipment ERS: One month before Letter of Credit expiry Post-shipment ERS: Maximum 3 months Financing ratio : 70% of the price of export order (subject to the limitations of funding and project type) or 100% of the price of raw materials (whichever is lower) Collateral : Letter of Credit (Original copy) adopted by BIBD and Purchase Order

Type of facilities/financing method:Pre-shipment ERS

Direct Exporter Method of financing the total order, in which exporter has purchase order from the importer and Letter of Credit from importers bank.

Indirect Exporter Exporters with a purchase order from a local buyers (actual exporter) and Letter of Credit from any bank that is certified by BIBD.

Post Shipment ERS Direct Exporter - Method of Financing through the Letter of Credit

received from importers and banks as collateral for financing Bridging Financing.

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Repayment:Pre-shipment ERS after receiving:

Direct Exporter - Export Revenue - Collection after Indirect Exporter - Collection of Direct ExporterPost Shipment ERS after: Direct Exporter - Receipt of Export proceeds; or - The delivery bill is due (whichever is earlier)

Eligible expenses: Pre-shipment ERS:

Cost of Raw Materials Cost of Manufacturing and Packaging Storage Cost Transportation Cost Discharge Cost

Post Shipment ERS: A continuous credit guarantee of one (1) month based on the total

value of goods exported


How to apply:For more information or further enquiries, please contact:Ministry of Industry and Primary Resources (MIPR)Tel : +673-2380026E-mail : [email protected] Website : www.bruneimipr.gov.bn

Loan Schemes

INVESTMENT FUNDSCHEMES

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Investment Fund Schemes

Promising Local Enterprise Development Scheme (PLEDS) Investment Fund

Objective:An investment fund that will invest in and transform promising local enterprises so that they can compete internationally either through increased exports or overseas expansion.

Eligibility: The company is registered in Brunei as Sendirian Berhad, The company is in active operation for minimally 5 years, The company has progressive growth based on annual revenue in last

3 years, Readily available products and services.



The initiative would demonstrate to the outside world that Bruneis products are as competitive as from other countries. Whether its oil and gas support, industrial hardware, food processing, ICT or logistics etc, the companies in Brunei are every bit as good as those within the region. In fact, in some cases were significantly better. This initiative is another step in getting Megamas introduced to the larger international markets. Mr Roger Ainsworth, Megamas Training Company Sdn Bhd, one of the first companies enrolled in PLEDS.

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The Future Fund

Objective:To bridge the initial funding gap for potential innovative ICT entrepreneurs that are promising and have good business ideas.

Eligibility: Promising ICT companies based in Brunei. Ownership must be 50% or more locally owned at the time of investment

but ownership post-investment can change. Startups must not be a subsidiary of foreign MNCs with over BND10

million annual turnovers.

Maximum amount allocated per recipient company: From BND50,000 increase to BND150,000 for each company in tranches. (Follow on investment depends on investees achieving certain milestones.)

Features of Fund: This Early Seed Capital fund will invest at the early seed stage where

research and development are required to kick-start ideas before pursuing further business development.

Investees will also have to invest 10% of the proposed fund investment using their own money in the company.

iCentre will provide monitor and provide mentorship to the investees.

Administered by:Futureventures Sdn Bhd (a joint venture initiative by AITI, BEDB & DST)

How to apply:For more information or further enquiries, please contact:Futureventures Sdn Bhd Website : www.futurefund.com.bn

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Accel-X Investment Fund

Objective:To provide funding support for early stage companies in hi-tech growth areas such as ICT, technology and engineering.

Eligibility:High technology start ups incorporated in Brunei with potential scalable business models.

Maximum amount allocated per recipient company: BND1.5 million in any one company. Investment exceeding this may be allowed subject to approval.

Features of Fund: Investment into companies with potential scalable business model, Fund Managers offer value add to companies by providing guidance,

mentoring and facilitating connections for the scaling up.


How to apply:For more information or further enquiries, please contact:Brunei Economic Development Board Tel : +673-2230111Website : www.bedb.com.bn

TAX INCENTIVES

INTELLECTUALPROPERTY RIGHTSPROTECTION

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Tax Incentives

General Tax Incentives

This section covers various tax incentives in the form of tax exemption, allowable deduction and tax credit under the Income Tax Act (Chapter 35).1. Tax Exemption

Newly Incorporated Companies

The annual corporate income tax rate with effect from Year of Assessment 2012 is 20%.

For newly incorporated companies in Brunei Darussalam, tax exemption will be granted for the first B$100,000 of the chargeable income of the company for the first three (3) consecutive years of assessments with effect from Year of Assessment 2008.

Any chargeable income above B$100,000 will be subject to the applicable annual corporate income tax rate.

The newly incorporate companies must be a resident company in Brunei.

2. Allowable Deductions

Staff Related Benefits

Double deductions are allowed for contributions paid to the approved funds Tabung Amanah Pekerja (Employee Trust Fund) and Supplementary Contribution Fund.

Double deductions are allowed for up to 15 weeks of salary payment

relating to maternity leave of female employees who are members of Tabung Amanah Pekerja (Employee Trust Fund).

Accelerated Capital Allowance

Industrial Buildings (including hotel buildings) With effect from 1 January 2008, in order to promote investment into

the manufacturing sector, the initial allowance is given for the capital expenditure incurred in the year of assessment has been increased to 20% and the annual allowance to 4% of the qualifying expenditure provided on a straight line basis until the total expenditure is written off.

Any such building, which is in operation prior to 1 January 2008,

shall only be eligible to claim annual allowance at the rate of 4% per annum. Claims for initial allowance will only be available to the capital expenditure incurred for building or structures completed on and after 1 January 2008.

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Tax Incentives

Machinery and Plant

As of 1 January 2009, the initial allowance is given for the capital expenditure incurred in the year of assessment has been increased to 40%. The annual allowances are calculated on the reducing value of the assets in accordance with the rates prescribed by the Collector of Income Tax (range from 3% to 25% depending on the nature of the asset).

An annual allowance of 33.5% in lieu of the above is given for a period

of 3 years in respect of capital expenditure incurred. For machinery or plant not exceeding B$2,000, the company could elect for an allowance of 100% in respect of that capital expenditure.

As for computer or other prescribed automation equipment, the

company could also elect for an allowance of 100% in respect of capital expenditure incurred. The aggregate amount of such allowance claimed by the company shall not exceed B$30,000 in any year of assessment.

3. Tax CreditBalancing, Modernisation and Replacement of Machinery or Plant

For the purposes of balancing, modernisation or replacement of the machinery or plant, new machinery or plant installed at any time between 1 January 2012 and 31 December 2017, credit at the rate of 15% of the amount so invested shall be allowed against the tax payable.

The tax credit arising from the above can be carried forward not

exceeding 2 years of assessment.

Staff Related Benefits

An employer who makes a contribution to the Tabung Amanah Pekerja (Employee Trust Fund), tax credit at the rate of 10% of the additional contribution so made (in excess of contribution made for the last year) shall be allowed against the tax payable in addition to the allowable deductions.

For new local employees who are citizens or permanent residents

of Brunei and are being paid a salary of up to B$3,000 per month, tax credit at the rate of 50% of the salary paid by employer shall be allowed against the tax payable.

The above only applies to a maximum period of 36 months of

employment of each new employee.

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For local employees who are attending training either locally or abroad

and are being paid a salary of up to $2,000 when attending the training, tax credit at the rate of 100% of the salary paid by employer shall be allowed against the tax payable.

The total amount of tax credits shall not exceed 50% of the total tax

payable in any one year of assessment.

For Information or further enquiries, Please contact:

Revenue DivisionMinistry of FinanceLevel 1, Island BlockMinistry of Finance BuildingCommonwealth DriveBrunei Darussalam BB3910Tel: +673-2383933 Fax: +673-2383932Email: [email protected]: http://www.mof.gov.bn

Tax Incentives

39

In an increasingly knowledge-driven economy, IP is a key consideration in day-to-day business decisions. New products, brands and creative designs appear almost daily on the market and are the result of continuous human innovation and creativity.

In Brunei Darussalam, SMEs represent over 90 percent of enterprises, and is a key engine of our economic growth. They are the driving force behind a large number of innovations and Contribute to the growth of the national economy through wealth and employment creation, investments and exports. Without doubt, in todays competitive and inter-connected world, SMEs need to focus on not just financials and cash flow, corporate governance and transparency, but also on Intellectual Property (IP) creation and protection. All too often, SMEs and start-up entrepreneurs fail to recognize the importance of, and leverage on the benefits of IP.

If left unprotected, a good invention or creation may be lost to larger competitors that are in a better position to commercialise the product or service at a more affordable price, leaving the original inventor or creator without any financial benefit or reward. Adequate protection of a companys IP is a crucial step in deterring potential infringement and in turning ideas into business assets with a real market value. Taking full advantage of the IP system enables companies to profit from their innovative capacity and creativity, which encourages and helps fund further innovation.

In order for SMEs to exploit their IPR, they have to be able to identify them in the first place. There are governing legislation on IP in Brunei Darussalam which provides for the legal mechanism for the protection of IPR as follows:

Trade Marks Act (Cap 98) Trade Marks Rules, 2000 Copyright Order, 1999 Industrial Designs Order, 1999 Industrial Designs Rules, 2000 Layout Designs Order, 1999

39

Intellectual Property Rights Protection

40

In addition, Brunei Darussalam is also a State party to the following:

WTOs Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS)

Berne Convention for the Protection of Literary and Artistic Works Paris Convention for the Protection of Industrial Property Patent Cooperation Treaty Budapest Treaty for the International Recognition of the Deposit of

Microorganisms for the Purposes of Patent Procedure

For general advice and information on how to register your IPR, please contact:

Patents and Industrial DesignsPatent Registry Office (PRO) Brunei Economic Development BoardKnowledge Hub, Block B26 Simpang 32-37, Anggerek Desa Bandar Seri Begawan BB3713Negara Brunei DarussalamTel: +673-2380965/6Fax: +673-2380545Email: [email protected] Website: www.brunei-patents.com.bn

Trademarks and CopyrightIntellectual Property DivisionAttorney Generals Chambers1st Floor, The Law & Courts BuildingKM1 Jalan TutongBandar Seri Begawan BA1910Brunei DarussalamTel: +673-2231200Fax: +673-2231230Email: [email protected]: www.agc.gov.bn

40

OTHER BEDB SCHEMES

42

Competency Building Programmes

iCentre Incubation Programme

Objective:The first Info-Communication Technology incubator in Brunei Darussalam which aims to be the centre of excellence for nurturing and developing successful entrepreneurs in the ICT industry.

Facilities: Subsidised office space, Shared meeting rooms, Shared auditorium.

Target users/Participants:Only companies that have an ICT or Multi-media element to their business plans are considered. Target participants will need to pitch to an Evaluation Committee before incubation.

Assistance provided: Mentorship, Business skills training/workshops, Fund raising assistance, Enterprise development assistance, Exposure trips.

Programmes: Ignite Think Big Business Plan Competition

An annual ICT business plan competition that offers the largest award of B$20,000 for innovative ideas.

Number of business plans received over 4 years: 215 business plans.

Past winners: Rafiqun ITS (2008); FreedomSoft & GoHalal and Revotech (2009); LoveFoodHateWaste & Polygon and Y1DC (2010); and BruInnovEdu and Bright Beginners (2011).

InnovateCo-organised by the iCentre and Asia Inc, Innovate is an annual forum which brings leading international ICT practitioners, members of the business community, educational institutions and aspiring entrepreneurs to share the latest ICT Innovation and Entrepreneurship trends.

Notable technology speakers who have presented at Innovate include: Derek Sivers, CD Baby, Kevin Walshm, Oracle, Dan Neary, Skype, Ann Burgraff, NUS Enterprise, Hew Joon Yeng, Pigeon Lab Pte Ltd.

43

As an incubatee, the iCentre has been key in helping us develop our business into something both innovative and viable in the international market. The support, mentorship and environment is invaluable to a startup company like ours Keeran Janin, Mesixty, iCentre Incubatee, 2012.

IMMerseA new initiative that aims to grow a vibrant multimedia community through series of workshops and competitions.

Past competitions: 2-D Character Design Challenge, Photo Challenge, Graphic Challenge, Scriptwriting & storyboarding Challenge.Upcoming competitions: Short Film Challenge, Animation Challenge and Web/ Mobile Challenge.



iCentreTel: +673-2382616 Website : www.icentre.biz

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SME Dialogue and SME Workshops

Objective: To encourage and inspire local businesses to consider overseas

expansion through the sharing of experiences with successful regional entrepreneurs and consultants.

To provide a holistic package of services, specifically on these three areas; Advisory Support, Resources and Business Development Activities.

Assistance provided: Bringing in successful business people from around the region as

guest speakers to inspire local entrepreneurs and also to share their challenges.

Bringing in relevant consultants to advise local entrepreneurs on products design, taste and market selection.

Provide the platform for open workshops and seminars. Information on starting a business such as FTA, Licensing, Legal Matters, Building and Occupational Permits, Profit and Loss, Balance Sheet, Employment, TAP/SCP etc.

Also provide One to One Clinic consultations between participants and field experts.


How to apply:For more information or further enquiries, please contact:Brunei Economic Development Board (BEDB)Tel : +673-2230111Website : www.bedb.com.bn


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Financial Management Programme

Objective:The Financial Management Program (FMP) aims to educate and assist Small Medium Enterprises (SMEs) to set up a system to manage their financial resources. The long term objective of the program is to encourage more SMEs to adopt good financial management practices.

Assistance provided: The BEDB is engaging a consultancy firm to provide the following

services in order to assist SMEs to establish a system to manage their financial resources:

1. Basic toolkits and financial clinic - To provide simple toolkits to small businesses to enable them to

prepare simple business plan and perform bookkeeping on their own.

- These toolkits will be supported by financial clinic in which these small businesses can seek for general financial advice.

2. Bookkeeping and financial advisory services

- To provide bookkeeping and financial advisory services to local businesses shortlisted by the BEDB for up to one (1) year.

Target users/Participants:Local start-ups and small businesses. This includes various grant recipients of the Brunei Economic Development Board (BEDB) and Youth Development Resources (YDR).




46

Brunei Hackathon

Background: To engage Bruneis young and skilled talents to develop solutions

that address specific nationwide challenges in line with Wawasan 2035.

To bring together young engineers, scientists, graphic designers, computer programmers and entrepreneurs in teams to collectively brainstorm and propose solutions.

Eligibility: Students, professionals and SMEs Public comprising engineers,

scientists and IT technicians.

Background: The 1st Brunei Hackathon will adopt Water Conservation as the

theme under the Environment Cluster, one of the 5 Research and Development Clusters.

The event will be run annually with participants brainstorming on the proposed sub-challenges.

The outcome will see to technical conceptual designs that can be further developed through alternative funding, and implemented by the relevant agencies.

Prize money will be awarded to the winning solutions.

Administered by:Brunei Economic Development Board (BEDB) with support of relevant agencies and sponsors.

How to apply:For more information or further enquiries, please contact:Brunei Economic Development Board (BEDB)Tel : +673-2230111Website : www.bedb.com.bn

Entrepreneurship Programmes

47

Entrepreneurship@Campus

Objective: To create an enabling ecosystem for students to develop innovative and

entrepreneurial skills. To boost the current levels of entrepreneurship amongst students in

Institutes of Higher Learning (IHLs). To create a vibrant ecosystem of entrepreneurial development activities,

incubation spaces, networking and mentoring that will nurture students into new entrepreneurs.

Eligibility: Students from all Institutes of Higher Learnings are encouraged to

participate as members of the E@C club.

Administered by:The Brunei Economic Development Board (BEDB) and Universiti Brunei Darussalam with the support of the iCentre.

For more information or further enquiries, please contact:Brunei Economic Development BoardTel : +673-2230111Website : www.bedb.com.bn


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Junior Achievement (JA) Pilot Project

Background: The BEDB has collaborated with Junior Achievement (JA) Worldwide

to implement a Pilot Entrepreneurship Education program. It is part of the BEDB efforts to promote entrepreneurship and

encourage start-ups in Brunei. The Program is intended to enhance the financial literacy and impart

entrepreneurial skills to youths in our schools.

Junior Achievement: Junior Achievement is a non-profit youth organization that was

founded in 1919 in USA. JA is a partnership between the business community, educators

and volunteers to deliver experiential programs to students in kindergarten through high school.

JA offers comprehensive programs that cover content areas of financial literacy, work readiness and entrepreneurship.

Brunei Pilot Project: With the support of the Ministry of Education, this Pilot Project will

include a number of Government Schools and Jerudong International School (JIS).

During Pilot Project period from September 2012 to March 2013, more than 200 students from ages 7 to 18 years old will be taught by volunteers in after-school lessons.

At the same time, feedback will be collected for any customisation needed for the JA material to meet local economic and cultural needs for roll-out to the wider student population.

Upon success of the pilot project, BEDB will apply to JA Worldwide as International Member and setup JA Brunei with the support from the local business community, educators and volunteers.




49

Creative Arts Facilities (CRAFT)

Objective:To create an eco-system that will foster the development of multimedia in Brunei Darussalam by providing shared infrastructure and creating effective programs through collaborations with international companies from the multimedia industry.

Facilities: Shared Infrastructure:

- Workstations- Software Licenses- Rendering Facilities

Target users/Participants: Local industry players such as production houses, animators, game

developers, apps developers, etc. Creative individuals, aspiring multimedia developers; IHL students and staff

Programs: Technical Training Workshops Technology Talks Mentorship Networking and collaboration opportunities with industry players




50

Establishing A Business

Setting up A Sole Proprietorship & Partnership

Industrial policies including manpower, ownership, Government support and facilities remain open and flexible for all categories of industrial activities. Brunei Darussalam maintains a realistic approach where a variety of arrangements are feasible.Policies relating to ownership allow for full foreign ownership, majority foreign ownership and minority foreign ownership, as per type of industry and situation. Only activites reating to national food security and industries can be totally foreign owned. Overall, in Brunei Darussalam, any industrial enterprise will be considered.All business must be registered with the Registrar of Companies and Business name and the proposed name of the business or company must also be approved by the Registrar of companies. A small fee of $5.00 is imposed for each proposed name.In Brunei, Investors may establish a commercial presence under one of the following business entities:

Sole ProprietorshipSole proprietorship is one individual owning the business. The sole proprietor has absolute responsibility from business transactions to legal matters. Sole proprietors are not subject to tax in Brunei Darussalam, but are personally liable for the obligations of their businesses.- Upon approval, a business name certificate is issued and a fee of

B$30.00 is imposed.- At present, sole proprietors are not subject to income tax in Brunei

Darussalam but are personally liable for the obligations of their businesses.

- Foreigners are generally not eligible to register.

PartnershipA partnership may consist of individuals, local companies and branches of foreign companies. The maximum permitted number of partners is twenty.- Upon approval, a business name certificate is issued and a fee of

B$30.00 is imposed.- At present, partnerships are not subject to corporate or income tax.- Applications by foreign individuals are subject to prior clearance by

the Immigration Department before they are registered.- The Contract Acts governs partnership laws in Brunei.

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Setting up a Private Company (Sendirian Berhad)

General Information for Setting up a Private Company (Sdn Bhd)in Brunei: No minimum share capital is required. It may be limited by shares, guarantee or both, or it may be unlimited. Must have at least two and not more than fifty shareholders.

Shareholders need not be a citizen or permanent resident of Brunei Darussalam.

It may restrict the right of members to transfer shares and prohibit any invitations by the public to subscribe for shares or debentures.

A subsidiary company may hold shares in its parent companies. Gross Yearly Profit subject to 22% corporate tax.

Registration Procedure Prepare Memorandum and Articles of Association. Collect the prescribed form from the Registrar of Companies and

Business Names and fill the form. Submit these incorporation documents (Memorandum and Articles

of Incorporation and the filled up form) to the Registrar of Companies and Business Names.

The Registration fees are based on a graduated scale on the authorized share capital of the company. For example, a company with an authorized capital not exceeding $25000 will pay a registration fee of B$300.00. Where the capital is in excess of B$150,000,000.00, the maximum fee is B$35,000.

Upon approval, Registration of Companies certificate will be issued and a fee of B$25.00 is imposed.

Duration of Registration is usually one or two months.

Requirements from a private company (Sdn Bhd) Appoint auditors who are registered in Brunei Darussalam. Prepare profit and loss account and balance sheet accompanied by

Directors Report annually. Submit accounting data annually to the Economic Planning Unit,

Ministry of Finance. File annual returns containing information on directors and

shareholders. Keep the following record:

- Minutes Book of Members Meeting- Minutes Book of Directors Meeting- Minutes Book of Managers Meetings- Register of Members- Register of Directors and Managers- Register of Charges

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Setting up a Public Company (Berhad)

General information for Setting up a Public Company (Berhad): No minimum share capital is required. It may be limited by shares, guarantee or both, or it may be unlimited. Must have at least 7 shareholders. Shareholders need not be a citizen

or permanent resident of Brunei Darussalam. Where there are two directors in a company, at least one of them

must be ordinarily resident in Brunei. In cases where there are more than two directors, at least two of them need to be ordinarily resident in Brunei.

May issue freely transferable shares to the public. A subsidiary company may hold shares in its parent companies. Gross Yearly Profit subject to corporate tax of 22%.

Registration Procedure Prepare Memorandum and Articles of Association. Collect the prescribed form from the Registrar of Companies and

Business Names and fill the form. Submit these incorporation documents (Memorandum and Articles

of Incorporation and the filled up form) to the Registrar of Companies and Business Names.

The Registration fees are based on a graduated scale on the authorized share capital of the company. For example, a company with an authorized capital not exceeding $25,000 will pay a registration fee of B$300.00. Where the capital is in excess of B$150,000,000.00, the maximum fee is B$35,000.

Upon approval, Registration of Companies certificate will be issued and a fee of B$25.00 is imposed.

Duration of Registration is usually one or two months.

Requirements from a Public Company (Sdn Bhd) Appoint auditors who are registered in Brunei Darussalam. Prepare profit and loss account and balance sheet accompanied by

Directors Report annually. Submit accounting data annually to the Economic Planning Unit,

Ministry of Finance. File annual returns containing information on directors and

shareholders with the Registrar of Companies and Business Names. Keep the following record:

- Minutes Book of Members Meeting- Minutes Book of Directors Meeting- Minutes Book of Managers Meetings- Register of Members- Register of Directors and Managers

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Acknowledgements

The BEDB wish to thank the following government ministries and agencies for their kind contribution and relentless effort in ensuring the factual information herein are accurate and reflect those incentives they represent:

Ministry of FinanceMinistry of Industry & Primary ResourcesJabatan Perancangan dan Kemajuan Ekonomi (JPKE)Authority for Info-Communications Technology Industry ofBrunei Darussalam (AITI)

Note: The information in this booklet is correct as at November 2012.

For further information, please contact:

THE BRUNEI ECONOMIC DEVELOPMENT BOARD (BEDB)Block 2K, Bangunan Kerajaan, Jalan Ong Sum PingBandar Seri Begawan BA1311, Brunei Darussalam

Tel: +673-223 0111Fax: +673-223 0082www.bedb.com.bn

Bedb.sme.Guide.book(2012)

Documents

local business development

existing local businesses

financial management

aiti grant

new businesses

financial accounts

financial reports

aiti ict competency