Registration of a company in Bhutan

Service	Bronze	Silver	Gold
Check and reserve of the company name Obtaining approval from the registrar for the company name
Company registration, including state fees Preparation of a full package of documents, depending on the chosen form of ownership, cooperation with the relevant authorities prior to obtaining information on company registration
Legal address for 1 year We provide a legal address for your company in this jurisdiction, eliminating the need to purchase or rent real estate
Support in opening an account Collection, preparation and submission of the necessary documents for opening a corporate account
Services of local director for 1 year Providing a resident director of a given jurisdiction or the EU, which is necessary for registering a company and opening an account at a local bank
Total cost	Оn request	Оn request	Оn request
Accounting services	Оn request	Оn request	Оn request
Annual renewal (paid from the second year)	Оn request	Оn request	Оn request

6 easy steps to get started

1

Select your preferred jurisdiction
2

Choose a bank that meets your company's needs
3

Pay for our services using a convenient payment method
4

Receive all necessary corporate documents
5

Receive details for your newly opened bank account
6

We'll deliver the original documents directly to you

Bhutan is a small kingdom located in the southern foothills of the Eastern Himalayas. A constitutional monarchy rules the country. Setting up a company in Thimphu or any other city in Bhutan will interest entrepreneurs who plan to do business east of the continent. The kingdom is a member of the South Asian Association for Regional Cooperation. Foreigners can open a company in Bhutan, but the procedure is complicated.

Advantages of registering a company in Bhutan

the political stability of the jurisdiction;
existing free trade agreements with India give entrepreneurs access to a large and promising market;
the availability of a wide range of economic incentives.

Main forms of legal presence and doing business

public company;
private company.

At the same time, the owner can buy a company in Bhutan and change its legal form.

Business registration procedure

reserve a unique company name;
obtain an SCC security certificate from the Royal Bhutan Police;
form a commercial proposal for submission to the Industrial Department (IDD) of the Ministry of Economy;
register a company in Bhutan with the Registrar of Companies;
obtain a business license from the Regional Trade and Industry Department of the Ministry of Economy;
apply for a taxpayer identification number and register with the tax office;
open a local bank account to conduct business.

Company registration in Bhutan may vary depending on the form of land ownership, environmental permit, and whether the company will be located within a municipality.

Legislation and regulatory environment

The Companies Act is the primary legal act regulating companies’ opening and operation.

Bhutan’s legislation defines the allowable share of foreign capital in starting a business. With 100% foreign investment, companies engaged in health care, infrastructure projects, IT, and others can be established. If a non-resident entrepreneur wants to open a firm in Bhutan involved in other activities, the local state-owned Druk Holding and Investments (DHI) can be chosen as a partner.

Tax system

corporate tax – 30%;
sales tax – from 5 to 100% (on tobacco products);
personal income tax – flexible rate from 0% for income below 100,000 Bhutanese Ngultrums (about US$1,200) to 152,500 Bhutanese Ngultrums (about US$1,850)+ 25% if income exceeds 1 million Bhutanese Ngultrums.

The Department of Revenue and Customs administers all taxes.

Companies must submit annual financial statements to the supervisory authority and be audited.

Starting a company in Bhutan has become more profitable since the enactment of the Tax Incentives Act 2021, which establishes tax vacations for up to 10 years and a 5-year tax rate reduction for selected economic sectors, as well as many other preferences.

Opening a business in Bhutan: how the lawyers of Prifinance can assist

The current legislation of the Kingdom allows foreign investors to get significant tax advantages and build profitable relationships with Asian partners. Prifinance lawyers will advise on all the nuances of doing business in the jurisdiction, support you to register a company in Bhutan, and keep accounting records.

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