The kingdom of Bhutan is a landlocked country in the Eastern Himalayas, it is located between the country of China and India. The Bhutan currency is ngultrum, the value of this currency is fixed to the Indian rupee. This makes the Indian rupee accepted in Bhutan. It is a small economy but the fastest growing economy in the world.
Bhutan’s economy is based on the following sectors: agriculture, forestry, tourism, and the sale of hydroelectric power to India.
The Bhutanese had upheld a no entry law, restricting foreigners or foreign entities from entering their land, this was used to maintain the governing body of Bhutan and to preserve both the culture and political peace of the nation. This made Bhutan one of the rare countries with no trace of colonization.
Company structure in Bhutan
The company structures in Bhutan include limited liability companies, joint ventures, and branch offices of the pre-existing company.
Limited Liability Company
Companies may only be registered by Bhutanese citizens. For a foreigner to successfully register a company, the kingdom ensures that all capital for investment is in US currency.
Other things needed for the registration include: choosing a company name, obtaining a clearance certificate, submitting of business proposal, the registration, the company seal is done a year after obtaining the business license, and opening a business bank account.
Joint Venture Company
The first joint venture company in Bhutan, it was a pact signed with India, this was the first joint venture hydropower project. The certificate of incorporation was handed to Bhutan in the year 2015.
Foreign Direct Investment
Foreign direct investment in Bhutan reflects foreign ownership of production facilities. The share of foreign ownership is equal to 10ù of the value of the company. Foreign direct investment is defined as the net inflows of investment, this will help to acquire a lasting management interest in enterprises operating in an economy rather than that of investors.
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Breakdown of Bhutan company registration fees and expenses
