Starting a Business · Bhutan
Starting a business in Bhutan: foreigner's guide (2026)
Bhutan shaded by its starting a business status
Bhutan's FDI Rules and Regulations 2025, which replaced the 2019 policy, introduced a tiered ownership framework: 100% foreign ownership is permitted in priority sectors (IT, luxury hospitality, healthcare, R&D, infrastructure via PPP), while other sectors cap foreign equity at 74% and a Schedule III negative list bars FDI entirely from areas such as retail trade, raw mineral mining, and 3-star-and-below hotels. Company formation requires multi-step registration through MoICE and compliance with sector-specific minimum investment thresholds, making the overall environment moderate in ease for foreign entrants.
Key points
The FDI Rules and Regulations 2025 (in force 18 July 2025) replaced the prior 2019 FDI Policy and Regulations, consolidating all foreign investment rules into a single instrument under MoICE authority.
100% foreign ownership is allowed in Schedule I/II priority sectors (healthcare, luxury hotels/resorts, IT, infrastructure-PPP, R&D). Other open sectors cap foreign equity at 74%. Joint-venture-only sectors limit foreign equity to 49%.
Schedule III prohibits FDI in news media, wholesale/retail/micro-trade distribution, raw-mineral mining, hotels of 3-star and below, general health services, and real estate, among other activities on the government's prohibited list.
General minimum project cost is Nu. 5 million (~USD 58,860). Sector-specific thresholds are higher: Nu. 50 million for manufacturing, Nu. 25 million for services, and Nu. 200 million for health services.
Setup involves: (1) name approval via Registrar of Companies (~1 day), (2) location/environmental clearance (7–30 days), (3) company registration submission to MoICE, (4) tax registration with Bhutan Revenue & Customs Authority (1–2 days). Total typical timeline is roughly 3–6 weeks.
Foreign investors committing over Nu. 15 million (~USD 176,600) qualify for an Investor Card granting 3-year renewable residency in Bhutan and an exemption from the Sustainable Development Fee levied on general visitors.
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Last verified 5/24/2026 · Orientation, not legal advice - verify against the primary sources linked above. Explore the full world map →