Comparing the ease of conducting business, developing economies are catching up to developed economies. Entrepreneurs in nations with low economies spend about 50 percent of their per capita income to establish a company. Registering a business here takes 12 days and eight procedures. Aside from that, it takes 150 days to get construction permits and more than two months to get an electricity connection for business. For the protection of minority investors, that is people who have non-controlling shares in companies, the country ranks 111th. Although establishing a business here is a bit tasking, there are some business opportunities it still offers investors. For business owners interested in acquiring an offshore establishment here, there are many companies available for sale and investment opportunities.
This guide provides information on purchasing a company here, and the types of companies to look out for. If you are looking to buy a company in this territory, then you need to read this.
Buying a Company
It is quite possible to buy an investment online without traveling down to the country in it is located. This is simple, easy, and convenient but dangerous. At least, without the aid of a hired support service expert. Buying an active establishment is easy online, as numerous marketplaces on the internet advertise business and investment opportunities on sale. However, to avoid scams, it is recommended to engage the services of an expert based in the city.
There are two steps to acquiring a business. The first step has to do with searching for a business available for sale and guaranteeing its authenticity through research. On SMERGERS, a site where businesses are sold, you can find active and verified businesses for sale and investment opportunities. Next is step two, where you should hire a service provider to represent you during the process. You can choose to do this yourself, but it is advised one contact a professional to facilitate the process smoothly.
Doing Business in Bhutan
The country has the potential to be an attractive production hub thanks to its cheap labor and enticing friendly policies such as the intellectual property protection policy set up to attract foreign investors.
Types of Companies
There are five forms of business entities acceptable by the Bhutan Investment Development Authority namely sole proprietorship, partnership, limited liability company, public limited company, branch office, and representative office.
Established and controlled by one person with full control over the activities of the entity
This type of entity is set up by more than one person and must be registered with the Registrar of Joint Stock Companies and Firms (RJSC). Here, everyone has to contribute to the share capital needed to incorporate the company.
Limited Liability Company (Private Limited Company)
This is commonly established by investors with shared limits to the shareholders. Everyone has to find the capital require to incorporate the company.
Public Limited Company (PLC)
The corporation can choose to sell its shares to the public. Shareholders contribute to the share capital.
A foreign business establishes this form of entity to carry out business activities here. It must be approved by the government before commencing business transactions.
Representative Office (Liaison Office)
A foreign business owner can set up this office here provided it is limited to activities that do not generate income and import products onto its shores.
Features of a Company
Every company has its features and registration requirements. Knowing a company’s features is useful when acquiring one. The following are some features of a business entity:
- Shareholders’ liability
- Company address
- Share capital
- Foreign ownership
- Number of Shareholders/Partners, et cetera