Basnet Attorneys and Law is a reputable and well-established full service law firm based in Thimphu, Bhutan. Specializing in litigation (legal representation in Bhutanese Courts), arbitration, legal, and business consulting especially in FDIs, our experienced Bhutanese Lawyers are committed to providing customized solutions to meet the diverse needs of our clients. With a strong focus on delivering high-quality services, we adeptly guide clients through the intricacies of the Bhutanese legal system both within Bhutan and internationally. FDI Bhutan is top Bhutan FDI Advisory Department at Basnet Attorneys and Law - A Premier Law Firm in Bhutan. We specialize in Foreign Direct Investment (FDI) in Bhutan. Our expertise extends to collaborating with businesses, special economic zones, and industries globally, aiming to set up their business in Bhutan. As a leading authority, FDI Bhutan serves as one stop window for setting up FDI in Bhutan.
Comprehensive Procedure for Establishing Foreign Direct Investment (FDI) in Bhutan
Bhutan, renowned as the Land of the Thunder Dragon, presents an alluring opportunity for foreign investors seeking to establish their presence through Foreign Direct Investment (FDI). FDI, defined as investments made by foreign entities into businesses located in another country, is a pivotal driver for economic development. Bhutan's government, recognizing its significance, initiated FDI reforms in 2002, and since then, the country has consistently introduced measures to facilitate foreign investments.
1. Preliminary Steps: Obtain Company Name Clearance
Before embarking on the FDI process, secure company name clearance to ensure the chosen name is available for registration.
2. Foreign Direct Investment (FDI) Registration
FDI Registration Certificate: Obtain the FDI registration certificate, a crucial document signaling your investment commitment.
Online Company Registration: Utilize the official website (cra.gov.bt) to register your company online, adhering to specified requirements for different investor types.
For Foreign Corporate Investors: Provide authenticated documents like Articles of Incorporation, Shareholder's Resolution, and Certificate of Incorporation.
For Foreign Individual Investors: Submit the investor's CV and passport copies.
For Domestic Partners: Furnish citizenship identity card and security clearance certificate.
Refer to Legal Framework: Consult the Companies Act of Bhutan 2016, Foreign Direct Investment Policy 2019, and FDI Regulations 2019 for compliance.
3. Payment and Certificate of Incorporation
Payment Process: Receive payment advice notifications via email and settle the registration fees.
Certificate of Incorporation: Obtain the Certificate of Incorporation, confirming the successful registration of your company, along with relevant documents.
4. Location Clearance
Application for Industry License: Submit the industry license application with legal stamps, land ownership certificate, and land lease agreement.
Site Visit: Attend the scheduled site visit, leading to the issuance of location clearance by the Dzongkhag.
5. Project Approval
Business Proposal: Present a comprehensive business proposal along with location clearance to Invest Bhutan Division.
Sectoral Clearances: The Division will seek sectoral clearance from relevant agencies, culminating in project approval.
6. Business License
Application: Request the business license online from the G2B and G2C portal.
Payment and Collection: Pay the required fees and collect your business license, ensuring possession of necessary documents.
7. Open Bank Account
Approval for FC Account: Initiate the process to open a Foreign Currency (FC) account by submitting required documents to the Royal Monetary Authority (RMA).
Current Account: Complete current account opening formalities, including submitting the current account form, business license, and other necessary documents.
Additional Signatories: If applicable, provide a board resolution and necessary documents for additional signatories.
Foreign Currency Bank Account: Secure approval for the FC account, presenting relevant documents.
8. Taxpayer Number
Application: Apply for the Taxpayer Number from the Regional Revenue and Customs Office, Thimphu, submitting essential documents.
Promoter's Details: Provide detailed information about promoters to complete the taxpayer number application.
Conclusion:
Establishing Foreign Direct Investment in Bhutan entails a systematic approach, adhering to regulations and guidelines set by relevant authorities. By diligently following these organized steps, you can pave the way for a successful venture in this serene and business-friendly Himalayan kingdom.
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Invest and set up FDI in Bhutan with the help of FDI Bhutan and Basnet Attorneys and Law