Capital: Thimphu

Language: Dzongkha

Currency:  Bhutanese ngultrumb (BTN)

 

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Bhutan

 

Bhutan, a landlocked country nestled in the eastern Himalayas, has a rich history, vibrant culture, evolving economy, and unique political system. Let us delve into the fascinating story of Bhutan’s past, its distinctive culture, its growing economy, and its political landscape.

Bhutan’s history stretches back several millennia, with evidence of human habitation dating back to as early as 2000 BCE. The country’s early history is intertwined with Buddhism, as Guru Padmasambhava, a revered Buddhist master, is said to have introduced the religion in the 8th century. Over the centuries, various Buddhist schools, including the Nyingma, Kagyu, Sakya, and Gelug, flourished in Bhutan, shaping its cultural and religious identity.

One of the defining moments in Bhutan’s history occurred in the 17th century when the charismatic leader Shabdrung Ngawang Namgyal unified the country, establishing a theocratic system of governance. The Shabdrung’s legacy is still celebrated today, and his vision laid the foundation for Bhutan’s unique political and cultural identity.

Bhutan’s culture is deeply rooted in its Buddhist heritage, with traditional practices and beliefs strongly influencing every aspect of life. The Bhutanese people cherish their ancient traditions, expressed through vibrant festivals, colorful attire like the gho and kira, intricate traditional architecture, and a reverence for nature. Bhutan’s commitment to preserving its culture is reflected in the concept of Gross National Happiness (GNH), which prioritizes holistic well-being and sustainable development over purely economic indicators.

Speaking of the economy, Bhutan has witnessed significant changes in recent years. Historically an agrarian society, the country has been diversifying its economy with an emphasis on sustainable development. The hydroelectric power sector plays a crucial role in Bhutan’s economy, harnessing the abundant water resources of the country. Bhutan also promotes low-volume, high-value tourism, allowing visitors to experience its pristine landscapes, rich biodiversity, and unique cultural heritage. Additionally, Bhutan has been gradually developing industries like information technology, textiles, and manufacturing, providing employment opportunities for its citizens.

In terms of politics, Bhutan embarked on a democratic transition in 2008, with the introduction of a constitutional monarchy. The Bhutanese people participated in their first parliamentary elections, marking a significant milestone in the country’s political evolution. The monarchy continues to hold a revered place in the hearts of the Bhutanese people, with King Jigme Khesar Namgyel Wangchuck and his father, King Jigme Singye Wangchuck, playing pivotal roles in guiding the nation’s development.

Bhutan’s political system embraces a unique philosophy known as “Gross National Happiness,” which seeks to balance material well-being with spiritual, social, and environmental dimensions. The government strives to ensure equitable socio-economic development, preservation of cultural values, and environmental conservation, guided by the principles of GNH.

 

 

Private Limited Company:

Private limited companies are the most common form of business entities in Bhutan. They are owned by individuals or a group of shareholders, with limited liability. These companies require a minimum of two shareholders and can have a maximum of 50 shareholders. Private limited companies are regulated by the Companies Act of Bhutan and offer flexibility in terms of ownership and management.

State-Owned Enterprise (SOE):

Bhutan has a number of state-owned enterprises, which are companies fully or partially owned by the government. These enterprises play a significant role in various sectors, such as energy, infrastructure, telecommunications, and financial services. Some notable state-owned enterprises in Bhutan include Druk Green Power Corporation, Bhutan Telecom, and Bank of Bhutan.

Joint Venture:

Joint ventures involve the collaboration of two or more entities, typically combining resources, expertise, and investments to pursue a specific project or business opportunity. In Bhutan, joint ventures are encouraged, particularly in sectors such as hydropower, tourism, manufacturing, and construction. Joint ventures can be formed between Bhutanese and foreign companies or between Bhutanese companies themselves.

Cooperative Society:

Cooperative societies are voluntary associations formed by individuals with common economic, social, or cultural goals. They are collectively owned and democratically managed by their members, who share both the benefits and responsibilities. Cooperative societies in Bhutan operate in sectors such as agriculture, handicrafts, tourism, and consumer goods.

Sole Proprietorship:

Sole proprietorships are businesses owned and operated by a single individual. This form of business is relatively simple to set up, and the owner has complete control over the operations. While sole proprietorships are less common in Bhutan compared to other company types, they can be found in sectors such as retail, small-scale services, and agriculture.

Non-Governmental Organization (NGO):

NGOs are nonprofit organizations that operate independently of the government, focusing on various social, environmental, and humanitarian causes. Bhutan has a number of NGOs working in areas such as education, health, environmental conservation, community development, and cultural preservation. These organizations contribute significantly to the social welfare of Bhutanese society.

Micro, Small, and Medium Enterprises (MSMEs):

MSMEs are small businesses that play a crucial role in Bhutan’s economy. They encompass a wide range of sectors, including agriculture, manufacturing, retail, tourism, and services. MSMEs are typically privately owned and operated, and they contribute to employment generation, income generation, and economic growth.

“Our team can provide assistance if you need help registering a company in Bhutan”

 

Common questions

 

What is the process for registering a company in Bhutan?

The process involves obtaining the necessary forms, submitting required documents, paying fees, and completing the registration process with the Companies Registrar.

What are the types of companies that can be registered in Bhutan?

Private Limited Company, Joint Venture, Cooperative Society, and Sole Proprietorship are some of the types.

What is the minimum number of shareholders required for a Private Limited Company?

A minimum of two shareholders is required.

Can a foreigner register a company in Bhutan?

Yes, foreigners can register a company in Bhutan, subject to certain regulations and requirements.

Is there a minimum capital requirement for company registration in Bhutan?

Yes, there is a minimum capital requirement. The amount varies depending on the type of company.

What is the role of the Companies Registrar in Bhutan?

The Companies Registrar is responsible for the administration and regulation of company registrations in Bhutan.

What are the documents required for company registration?

Documents such as the Memorandum and Articles of Association, identification of shareholders, and proof of address are typically required.

How long does the company registration process take?

The time required for registration can vary, but it typically takes a few weeks to complete the process.

What are the registration fees for company registration in Bhutan?

The registration fees depend on the authorized share capital of the company.

Are there any specific requirements for company names in Bhutan?

Yes, company names must be unique, not misleading, and comply with the guidelines set by the Companies Registrar.

Can a company change its registered name?

Yes, a company can change its registered name by following the necessary procedures and obtaining approval from the Companies Registrar.

Are there any tax obligations for registered companies in Bhutan?

Yes, registered companies are subject to taxation as per the laws and regulations of Bhutan.

What is the validity period of a company registration in Bhutan?

Once registered, a company is considered valid unless it is deregistered or dissolved.

Can a company have multiple directors?

Yes, a company can have multiple directors, subject to the requirements specified in the Companies Act.

Are there any specific requirements for the appointment of company directors?

Directors must be at least 18 years old, of sound mind, and not disqualified from holding such a position.

Can a company’s registered office be changed?

Yes, a company’s registered office can be changed, subject to the approval of the Companies Registrar.

Is it necessary to have a company secretary?

Yes, every company in Bhutan is required to appoint a company secretary.

Are there any specific requirements for the company secretary?

The company secretary must be a resident of Bhutan and possess the necessary qualifications and knowledge of company law.

What are the annual filing requirements for registered companies?

Registered companies are required to file annual financial statements, annual returns, and other relevant documents.

Can a registered company be closed or deregistered?

Yes, a company can be closed or deregistered by following the procedures specified in the Companies Act.

Is it mandatory to have a business license for company operations in Bhutan?

Yes, depending on the nature of the business, certain licenses or permits may be required.

Can a company’s activities be changed after registration?

Yes, a company’s activities can be changed, but it may require approval from relevant authorities or an amendment to the company’s Memorandum and Articles of Association.

Can a company be registered online?

Yes, the online registration system is available for company registration in Bhutan.

Are there any restrictions on foreign ownership of companies in Bhutan?

Some sectors may have restrictions on foreign ownership, and approval from the relevant authorities may be required.

Can a company register trademarks or intellectual property rights in Bhutan?

Yes, companies can register trademarks and intellectual property rights with the Intellectual Property Office of Bhutan.

Is it possible to register a company with foreign currency as the share capital?

Yes, it is possible to register a company with foreign currency as the share capital, subject to relevant regulations.

Can a company have multiple business activities under a single registration?

Yes, a company can engage in multiple business activities under a single registration.

Can a company’s registered address be a residential address?

No, a company’s registered address cannot be a residential address. It must be a commercial or business address.

Is it possible to register a company with only one shareholder?

No, a minimum of two shareholders is required for a company registration.

Can a company issue different classes of shares?

Yes, companies can issue different classes of shares, such as ordinary shares and preference shares.

What are the reporting requirements for registered companies?

Registered companies are required to maintain proper accounting records, prepare financial statements, and submit annual returns.

Can a foreign company establish a branch or subsidiary in Bhutan?

Yes, foreign companies can establish a branch or subsidiary in Bhutan, subject to the approval of relevant authorities.

Can a company’s shareholders be individuals as well as other companies?

Yes, a company’s shareholders can be individuals, other companies, or a combination of both.

Can a company be registered with a single director?

No, a minimum of two directors is required for company registration.

Can a company have a foreign national as a director?

Yes, a company can have a foreign national as a director, subject to certain requirements and approvals.

Can a registered company own property in Bhutan?

Yes, a registered company can own property in Bhutan, subject to relevant laws and regulations.

Can a company be registered with a foreign address as its registered office?

No, a company must have a registered office within Bhutan.

Is it necessary to have a local Bhutanese resident as a director or shareholder?

No, it is not mandatory to have a local Bhutanese resident as a director or shareholder.

Can a company change its business activities after registration?

Yes, a company can change its business activities after registration by following the necessary procedures.

Are there any incentives or benefits for registered companies in Bhutan?

Yes, certain sectors and activities may qualify for incentives or benefits provided by the government.

Can a registered company have a foreign bank account?

Yes, a registered company can have a foreign bank account, subject to relevant regulations.

Can a registered company engage in international trade?

Yes, registered companies can engage in international trade, subject to relevant trade and customs regulations.

Can a registered company participate in government tenders or contracts?

Yes, registered companies can participate in government tenders or contracts, subject to eligibility criteria.

Can a registered company have multiple business locations within Bhutan?

Yes, a company can have multiple business locations within Bhutan, subject to compliance with local regulations.

 Can a registered company have foreign employees?

Yes, a registered company can employ foreign nationals, subject to relevant work permit and immigration requirements.

Can a registered company be converted into a different type of company?

Yes, with the approval of the Companies Registrar, a company can be converted into a different type of company.

Can a registered company be transferred or sold to another party?

Yes, with proper procedures and documentation, a registered company can be transferred or sold to another party.

Can a registered company have a non-Bhutanese as its company secretary?

Yes, a registered company can have a non-Bhutanese as its company secretary, subject to relevant qualifications and approvals.

Can a registered company operate in multiple sectors or industries?

Yes, a registered company can operate in multiple sectors or industries, subject to compliance with sector-specific regulations.

Can a registered company be dissolved or liquidated voluntarily?

Yes, a registered company can be dissolved or liquidated voluntarily by following the necessary procedures specified in the Companies Act.

 

Major Banks in Bhutan

 

• Bank of Bhutan: https://www.bob.bt/
• Bhutan National Bank: https://www.bnb.bt/
• Druk PNB Bank: https://www.drukpnbbank.bt/
• TBank Limited: https://www.tbhutan.com/
• Bhutan Development Bank Limited: https://www.bdb.bt/
• Bhutan Insurance Limited: https://www.bhutaninsurance.com/
• Royal Insurance Corporation of Bhutan Limited: https://www.ricb.bt/
• Bhutan National Bank for Agriculture and Rural Development: http://www.bnbard.gov.bt/
• Bhutan Trust Fund for Environmental Conservation: https://www.bhutantrustfund.bt/
• Druk Punjab National Bank Limited: https://www.drukpnbbank.com/

 

The top universities in Bhutan

 

Royal University of Bhutan:

• https://www.rub.edu.bt/
• Location: Thimphu
• Major Courses: Various disciplines including arts, science, commerce, education, engineering, law, and health sciences.

Sherubtse College:

• https://www.sherubtse.edu.bt/
• Location: Kanglung, Trashigang
• Major Courses: Social Sciences, Humanities, Natural Sciences, and Business Studies.

College of Language and Culture Studies:

• http://www.clcs.edu.bt/
• Location: Taktse, Trongsa
• Major Courses: Bhutanese Studies, Bhutanese Language and Literature, and Dzongkha.

Jigme Namgyel Engineering College:

• https://www.jnec.edu.bt/
• Location: Dewathang, Samdrup Jongkhar
• Major Courses: Civil Engineering, Electrical Engineering, Electronics and Communication Engineering, and Information Technology.

Paro College of Education:

• http://www.pce.edu.bt/
• Location: Paro
• Major Courses: Bachelor of Education programs in various subjects including Primary Education, Secondary Education, and Special Education.

Gaeddu College of Business Studies:

• https://www.gcbs.edu.bt/
• Location: Gedu, Chukha
• Major Courses: Business Administration, Accounting, Finance, Marketing, Human Resource Management, and Economics.

Khesar Gyalpo University of Medical Sciences of Bhutan:

• https://www.kgumsb.edu.bt/
• Location: Thimphu
• Major Courses: Medicine, Nursing, Traditional Medicine, Public Health, and Pharmacy.

Gyalpozhing College of Information Technology:

• https://www.gcitr.ac.bt/
• Location: Gyalpozhing,
• Mongar Major Courses: Computer Science, Information Technology, and Computer Applications.

 

“If you need assistance registering for college or university, our team is here to help.”

 

Strange or unusual to visitors in Bhutan

 

Gross National Happiness: Bhutan is known for its unique development philosophy of measuring Gross National Happiness (GNH) rather than Gross Domestic Product (GDP). It may seem unusual for visitors to hear about a country prioritizing happiness and well-being over material wealth.

Traditional Dress: Bhutanese people often wear their traditional dress, called the “kira” for women and “gho” for men, as part of their daily attire. It may be unusual for visitors to see everyone, including government officials and school children, dressed in traditional clothing.

Archery as the National Sport: Archery is the national sport of Bhutan, and it is deeply ingrained in the Bhutanese culture. Visitors may find it strange to witness archery competitions where the targets are placed at a considerable distance, and archers engage in lively celebrations and dances after a successful shot.

Phallic Symbols: Bhutanese culture has a unique reverence for phallic symbols, believed to ward off evil spirits and bring good luck. Visitors may come across paintings, statues, and murals depicting phalluses, which can initially seem unusual or surprising.

Bhutanese Cuisine: Bhutanese cuisine is distinctive and may be unusual to visitors unfamiliar with it. The cuisine often features spicy chili peppers, cheese (especially the local variety called “datshi”), and red rice. The use of fermented vegetables and dishes like “ema datshi” (chili and cheese stew) might be unexpected for some.

Restricted Tourism: Bhutan has a regulated tourism policy that requires visitors to book their trip through licensed tour operators and pay a daily minimum tariff. This approach aims to preserve the country’s unique culture and environment but can be perceived as unusual for those accustomed to independent travel.

No Traffic Lights: Bhutan’s capital city, Thimphu, does not have traffic lights. Instead, traffic is managed by traffic police using hand signals. This absence of traffic lights may initially seem strange to visitors, but it contributes to the country’s overall peaceful and low-stress environment.

Preservation of Nature: Bhutan is committed to environmental conservation and sustainability, with a mandate to maintain at least 60% forest coverage. It may seem unusual to visitors to see the emphasis on protecting nature and the strict regulations in place to ensure a pristine environment.

 

“Tips for Newcomers: Adjusting to Life in Bhutan”

 

Embrace the Bhutanese Culture: Bhutan has a rich and vibrant culture. Take the time to learn about Bhutanese customs, traditions, and etiquette. Respect the local culture and be open to experiencing new things.

Learn the Dzongkha Language: While English is widely spoken in Bhutan, learning some basic phrases in Dzongkha, the national language, can go a long way in building connections with locals and immersing yourself in the community.

Dress Respectfully: Bhutanese people have a traditional dress code, and it is appreciated if visitors respect this cultural norm. While you are not expected to wear traditional attire, dress modestly, especially when visiting religious sites or attending formal events.

Embrace the Slow Pace of Life: Bhutan is known for its relaxed and unhurried lifestyle. Embrace the slow pace of life and take the time to appreciate the beauty of your surroundings. Avoid rushing and allow yourself to immerse in the peaceful atmosphere.

Respect the Environment: Bhutan is known for its commitment to environmental conservation. Be mindful of waste management and the importance of preserving the natural surroundings. Practice responsible tourism and follow guidelines for eco-friendly behavior.

Be Prepared for Altitude: Bhutan is a mountainous country, and some regions have high altitudes. If you are not accustomed to high altitudes, take it slow and give yourself time to acclimatize to avoid altitude sickness. Stay hydrated and listen to your body.

Try Bhutanese Cuisine: Bhutanese cuisine has its own unique flavors. Be adventurous and try local dishes like “ema datshi” (chili and cheese stew) or “suja” (butter tea). Explore the local markets and taste the fresh produce.

Build Connections with Locals: Bhutanese people are known for their warm hospitality. Take the initiative to build connections with locals, whether it’s through community events, cultural activities, or volunteering. Participating in local activities can help you integrate into the community and make new friends.

Stay Mindful of Bhutan’s Customs and Laws: Familiarize yourself with the local customs and laws to ensure you abide by the regulations. Be aware of sensitive topics and cultural sensitivities to avoid any unintentional misunderstandings.

Seek Support from Expatriate Communities: Bhutan has a small expatriate community, and connecting with other foreigners living in Bhutan can provide a valuable support system. Seek out expatriate groups, social events, or online forums to connect with like-minded individuals.

 

Top recruitment agencies in Bhutan

 

Bhutan Recruiter: http://bhutanrecruiter.com/

RMA Bhutan: https://www.rma.com.bt/

Search Bhutan: https://www.searchbhutan.com/

Bhutan Gateway Travel & Tours: http://www.bhutangatewaytravel.com/

Rigsum Overseas: http://rigsumoverseas.com/

Bhutan International Manpower Services: https://www.bimsbhutan.com/

 

Necessary phone numbers in Bhutan

 

Police: 113

Fire Service: 110

Ambulance: 112

Directory Assistance: 104

Tourism Council of Bhutan: +975-2-323251

Immigration Office (Department of Immigration): +975-2-322481

Royal Bhutan Police (Thimphu): +975-2-322236

Bhutan Tourism Hotline: 24-hour toll-free number within Bhutan: 1234

Bhutan Telecom Customer Service: 1600

 

The best way to immigrate to Bhutan

 

Obtain a Job or Business Opportunity: One of the main ways to immigrate to Bhutan is through employment or business. You can explore job opportunities or business ventures in Bhutan and secure a job offer or business plan with a local Bhutanese entity.

Partner with a Bhutanese Citizen: Another option is to marry a Bhutanese citizen and obtain a spouse visa. This requires meeting the legal requirements for marriage in Bhutan and going through the necessary immigration procedures.

Invest in Bhutan: Bhutan has specific provisions for investors who wish to contribute to the country’s economic development. You can explore investment opportunities and work with the relevant authorities to establish a business in Bhutan.

Study in Bhutan: If you are interested in pursuing higher education, you can consider applying to universities or colleges in Bhutan as an international student. This would require obtaining the necessary student visa and meeting the admission requirements of the educational institution.

Seek Bhutanese Citizenship: Bhutan follows a cautious approach towards granting citizenship. To become a Bhutanese citizen, you would need to fulfill stringent eligibility criteria, including a lengthy residency requirement, cultural assimilation, and demonstrating a good knowledge of the Bhutanese language and culture.