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Foreign companies or individuals can create a company in Bhutan through a joint venture with a local partner/ promoter. 100% foreign company ownership is allowed for certain activities in the service sector. The equity share depends on the investment sector and can be consulted here(Schedules I and II). Activities not listed under the priority list, negative and prohibited lists will have to fulfill certain screening criteria set in Schedule V of the same document.
Company creation process is the same for all types of companies. Depending on the location and type of activity, land and/or environmental clearance must be obtained.
Activities listed here do not require location clearance.
Activities listed under the green list of project categorization do not require environmental clearance. However, for projects under government reserved forest land or government land, Environmental Clearance for Land issued by the District Environment Officer is a mandatory requirement for all kinds of activities.
Notice: Currently under Thimphu District, applications for government land lease (unless it is in Bjimina or
the industrial estate in Bjimina) are not approved for projects involving manufacturing
and production activities, and also those projects requiring construction of permanent structures due to space constraint and the potential negative impact
of factories to the residents.