Investors, whether domestic or international, should be aware of the administrative and legal challenges that business owners in Bhutan must overcome to establish their companies. Entrepreneurs must be well-prepared and well-informed before choosing this magnitude to ensure that they are up for the hurdles that they may encounter. Limited liability companies, joint venture companies, and branch offices of international companies that already exist are the legal forms that may be used to establish an IT firm in Bhutan.
Bhutan’s requirements for company registration
A company in Bhutan may be registered under the Companies Act of the Kingdom of Bhutan 2000 if it is held by two or more persons who are each at least 18 years old. According to the legislation, applicants for a Bhutan business registration license must be prepared to register an entity as a company under this act to be considered eligible.
Required paperwork for Bhutanese business registration
The following documents are required for the procedure to go forward for those wishing to form a business in Bhutan under the Companies Act of the Kingdom of Bhutan:
- An original citizenship identification card must be created at the Department of Industry’s Company Registry Division.
- The company’s first and chief executive officer’s name and address.
- Consent to serve as directors of the business, completed properly on the form provided.
- Statement of the directors.
- The number of industrial licenses as well as sectoral clearance from the relevant sector.
How to launch an IT firm in Bhutan
Bear in mind that Bhutanese citizens are often the only people who are allowed to establish a corporation in Bhutan. However, to legally register a foreign corporation, you will need to verify that the money you are investing is in United States dollars. In addition to this, the application must be physically submitted to the Ministry of Economic Affairs of Bhutan. To be more specific, the Company Registry Division of the Department of Industry.
Find a good name for your business
This name must be unique. It must not sound identical to any existing company name. It should also avoid using offensive words or terminology. You may search by name on the website of Bhutan’s Ministry of Economic Affairs.
A security clearance certificate should be obtained
You will need to travel to the Royal Bhutan Police’s office to get a Security Clearance Certificate (SCC). For this phase, the following papers are required:
- completed application form;
- your ID;
- two recent passport-sized photographs;
- proof of your authorized presence in Bhutan;
- telephone number;
- envelope with a prepaid return address.
Business proposal submission
The next step is to create a paper outlining the objectives and operations of your organization. After that, you must send this paper to the Industrial Department Division together with your application.
Registration
The Office of Registrar is where you must officially register after that. The Regional Trade and Industry Office will then let you pick up your business license. Additionally, you’ll need a document containing the names of any shareholders and/or directors of the business you may like to nominate. The individuals listed above must sign this paper.
Firm seal
According to Bhutanese legislation, every company must have a distinctive seal. After receiving your company license, you must do this within a year.
A company bank account is opened
You are now authorized to create a corporate bank account as you have your official business registration license. You may do this in any bank, and you’ll need the following documentation to support your request:
- your ID;
- your company’s incorporation certificate;
- the document certifying security clearance.
