Bhutan is a monarchy in South Asia’s subcontinent. Bhutan is a country in the eastern Himalayas that is often frigid. Indian citizens must apply for a visa to enter Bhutan. Bhutan, one of the few nations without a history of colonization, maintained a no-entry policy until a few decades ago. This regulation allowed no foreigner or foreign company to enter Bhutanese territory. The Bhutanese government upheld this in order to protect the nation’s culture and political stability. Foreign and domestic investors alike should be aware of the regulatory and legal challenges faced by businesspeople wishing to register a company in Bhutan. Entrepreneurs must be prepared and well-informed before making a decision of this magnitude so that they can face any problems that may arise.
Steps of company registration in Bhutan
The following steps make up the registration of a corporation in Bhutan:
Set up an office and choose a name for your company that is acceptable and distinctive
This name must be distinctive. It can’t sound similar to any names of already-established businesses. Additionally, it shouldn’t include crude language or words.
Get the Royal Bhutan police to provide you with a security clearance certificate
You must visit the Royal Bhutan police headquarters to receive a security clearance certificate (SCC). You’ll require the following paperwork for this step:
- Filled-out application.
- Your ID card.
- Two most recent passport photos.
- Proof of your right to remain in Bhutan Contact information.
- Prepaid self-addressed envelope.
Send your project proposal to the ministry of economic affairs’ industrial department division
The next step is to create a paper outlining your company’s objectives and activities. The Industrial Department Division will then require you to submit this paperwork with your application.
Register your business at the office of the registrar
You must then legally register at the registrar’s office. Your business license is then available for pickup at the regional trade and industry office. A document with the names of any shareholders and/or directors of the company you may choose to appoint is also required. The aforementioned individuals must sign this form.
Create a formal company seal
According to Bhutanese legislation, every business must have a distinctive seal of its own. Within a year of receiving your business license, you must do this.
Open a business bank account
You can create a business bank account now that you have your formal business registration license. You can accomplish this in any bank, and you’ll need the following paperwork as proof:
- Your ID card.
- You’re corporate certificate.
- The authorization for a security clearance.
Who is qualified to establish a business in Bhutan
According to local legislation, the Companies Act of the Kingdom of Bhutan 2000 allows two or more people who are at least 18 years old to register a business in Bhutan. According to the statute, applicants for Bhutan business registration permission must be prepared to register an entity as a company in accordance with the act in order to be accepted.
There is no set minimum for the number of directors or shareholders. At your discretion, you may choose to recruit or not hire as many people as you desire.
The price of registering a limited liability corporation in Bhutan
- If the authorized share capital is less than Nu. 1,000,000, then Nu.1000 is required.
- If the value is greater than Nu. 2,000,00, add Nu. 2000.
Other factors to think about
You need a business permit to operate a business in the Kingdom of Bhutan. Additionally, the Regional Trade and Industry Office of the Ministry of Economic Affairs is where you can obtain your business license. Within a year of establishment, you must make sure you have a company seal in addition to the license. If you simply have a corporate bank account, running your firm will be successful. So make sure to open the bank of your choosing by providing all necessary documentation in accordance with the bank’s specifications.
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Breakdown of Bhutan company registration fees and expenses
