Why invest in Bhutan

 Investment opportunities in high-end ecotourism, information and communication technologies

(ICTs), infrastructure, education, power generation, as well as organic farming and agricultural
processing
 Opportunities for public–private partnerships in higher education, infrastructure, property
development, hotels and ICTs.
 Provision of industrial infrastructure in special economic zones.
 Free trade agreement with India, providing access to the US$1.7 trillion Indian market, and
member of the South Asia Free-trade Agreement.

Institutional and regulatory framework

Foreign direct investment in Bhutan are coordinated and monitored by the DoI at the Ministry of
Economic Affairs (MoEA). The Ministry acts as the country’s investment promotion agency and focal
point for investors.

Except for some specific provisions and incentives set out in the 2010 FDI Policy, foreign investment
projects are subject to the same laws, rules, and regulations that are applicable to domestic firms. This
right to equal treatment is formalized in the FDI Registration Certificate (FDIRC), which is issued by the
Ministry of Economic Affairs upon application by foreign investors (see below).

International investment treaties

Bhutan is not a member of the Multilateral Investment Guarantee Agency or the International Centre
for Settlement of Investment Disputes (ICSID). To date, it has also not yet signed bilateral investment
treaties or double taxation treaties with international partners. Releva
Business Approval
 Submit the FDI Registration Application form to the Department of Industry. You will receive
a FDI Registration Certificate which is the approval in principle.
 Submit two copies of the business plan to the Department. Depending on your business
activity, you will be asked to submit the Initial Environmental Examination form (IEE) to the
National Environment Commission through the Department of Industry. However, for some
activities, the clearance is delegated to relevant sectors.
 Incorporate your business with the Registrar of Companies (see documents listed under
"Register your Company").
 Open a foreign currency account under the company name.
 Once the environmental and all relevant sectoral clearances have been issued, if the
proposed activity falls in the priority list (see below), the Department will grant approval to the
project within two working weeks. If the proposed activity doesn't fall in the priority list, nor in
the negative list (see below), the project shall be evaluated by the Project Approval Committee
which then shall grant final approval of the project.
 Obtain an industrial license at the relevant Regional Trade and Industry Office.
 Apply for a taxpayer identification number and register for income tax
 In the event, foreign investors are not able to find suitable local partner, you can contact
the Bhutan Chamber of Commerce and Industry for onward network with business
communities.

Documents to be submitted for approval of FDI in new industry

1. Duly filled up FDI Registration Application form (form available under relevant documents above)
2. Two copies of business plan after the Registration Certificate is granted.
3. Duly filled up IEE form available on National Environment Commission's website

Foreign Ownership

Degree of Foreign
Ownership Allowed Sectors

100 Percent Education services (except technical and vocational institutions), health,
Five- Star Hotels, Infrastructure, reasearch & Development, Head Office
Services, IT and IT enabled services inside SEZs

Upto 51 Percent Financial Services

Upto 74 percent Al other activities except those in the Negative List (Negative list