Starting a Business in Bhutan

Welcome to our comprehensive guide on starting a business in Bhutan. Whether you’re an aspiring entrepreneur or an established business looking to expand, Bhutan offers a promising environment for business growth. In this guide, we’ll walk you through the essential steps and requirements to set up your business in Bhutan successfully. Let’s dive in.

1. Choose Your Company Type: The first step in starting a business in Bhutan is to determine the most suitable company type for your venture. Options include Private Limited Company, Public Limited Company, Sole Proprietorship, Partnership, or a Branch of a foreign company. Consider factors such as liability, ownership, and future growth plans to make an informed decision.

2. Select a Unique Company Name: Selecting a unique and appropriate name for your business is crucial. Ensure your chosen name aligns with the guidelines set by the Bhutan Ministry of Economic Affairs. You can find the guidelines on their official website.

3. Prepare Required Documents: Gather the necessary documentation for your chosen company type. This typically includes Articles of Incorporation, Application for Company Registration, and other relevant forms. These documents can be obtained from the Ministry of Economic Affairs’ website or their physical office.

4. Identify Company Officers and Shareholders: Determine the individuals who will serve as directors or representatives of your company. Additionally, identify shareholders, whether they are individuals or corporate entities. Ensure they meet the minimum age requirement and possess the necessary qualifications.

5. Capital Requirements: Be aware of the capital requirements for your specific company type. Private Limited Companies require a minimum capital of BTN 300,000, while Public Limited Companies must have a minimum capital of BTN 5,000,000. Other types of businesses, such as Sole Proprietorships, Partnerships, or branches of foreign companies, do not have minimum capital requirements.

6. Register Your Company: Submit your completed application and required documents to the Bhutan Ministry of Economic Affairs for company registration. The application can be submitted in person or online through their official portal. Each company type has a corresponding registration fee, which varies.

7. Register for Taxes: After your company registration is complete, register for taxes with the Bhutan Revenue and Customs Authority (BRCA). This ensures compliance with tax obligations. Visit the local Tax Office or the BRCA website for the necessary registration process.

8. Obtain Necessary Permits and Licenses: Depending on your business activities, you may need to acquire additional permits or licenses. Research the specific requirements related to your industry and consult the relevant authorities to ensure compliance.

9. Open a Corporate Bank Account: Once your company is registered, open a corporate bank account in Bhutan. Contact local banks to explore their account options and provide the required documents, such as the Certificate of Incorporation and identification of authorized signatories.

10. Register with the Department of Labour: If your business plans to employ workers, register with the Department of Labour to comply with labor laws and regulations. This step ensures fair employment practices and protects the rights of your employees.