Bhutan for Business
Thimphu TechPark presents a great opportunity for the expansion of your business in a new and more profitable location. We have a data centre, few domestic companies and five international IT/ITES companies (Scan Cafe from the USA, ZOOP from Canada, SELISE from Switzerland, MultiRational from Australia and Southtech from Bangladesh) employing more than 700 people at the IT Park. We also have an incubation centre from where you can run a pilot operation to test the opportunities offered by Bhutan. The IT Park provides you with the state of the art facilities with high speed internet connection through redundant optical fibres plus a host of incentives and support from the Government.
FDI Company Incorporation Procedure in Bhutan
The incorporation of an FDI (Foreign Direct Investment) Company in Bhutan is fairly easy and straight forward. The whole process can be completed within one month or even less if the documents required to be submitted are in order. Bhutan's ranking on the World Bank's Ease of Doing Business Index has also been improving thanks to the efforts of our government. Here, we have compiled the application procedure for incorporating an FDI Company in Bhutan based on “Schedule VI” of FDI Rules and Regulations (amended in 2014) issued by the Ministry of Economic Affairs. It consists of just four steps.
To download this document explaining the procedures for FDI company incorporation, please click this link: http://www.thimphutechpark.com/downloads/application%20process%20for%20FDI%20in%20Bhutan%2023Aug2016.pdf
The prescribed Application Form for FDI Registration is found on Page 19 of FDI Rules and Regulations (Amended in 2014), which is given at this link: http://www.thimphutechpark.com/downloads/Bhutan-fdi-rules-n-regulations-amended2014.pdf
Visa and Work Permit Application Procedures
Business Visa or Work Permit is required for all foreigners visiting Bhutan to engage in business activities with a company or organization in Bhutan. For Indians, Bangladeshis and Maldivians, visa or permit would be stamped on arrival at the airport without the need for prior approval, but they should clearly show the invitation letter from the organization in Bhutan to the Immigration Officer at the port of entry and state that the reason he or she is visiting Bhutan for so that this can be reflected in their ‘entry permit’ or visa. Foreigners engaging in business/official activities under ‘Tourist Visa’ are liable to be penalized.
To download the document explaining the procedures for visa and work permit application, please click this link: http://www.thimphutechpark.com/downloads/work%20permit%20and%20visa%20application%20procedures.pdf
Incentives and Support from Government
The following are some of the incentives and support from the Government:
- The Government would provide you financial support to train the people to work in your company or help pay part of the salary (INR 7500 per month per employee) for new employees for up to 1 or 2 years depending on the skill required under the Guaranteed Employment Program. (Please see page 3: http://www.molhr.gov.bt/molhrsite/wp-content/uploads/2014/09/e.pdf
- The average salaries for employees would be less in Bhutan compared to that in India for similar talents/positions. On top of that, attrition is very low in Bhutan as per the experience of our tenants.
- You are eligible for tax holiday so that you would be exempt from Corporate Income Tax.
- The Government provides subsidy for Internet connection to make the cost similar to that you would pay in the region.
- The Ministry of Labour and Human Resources would help you in the recruitment of new employees.
- A company can be 100% foreign owned if established at the IT Park. Outside of IT Park, it is necessary to have a Bhutanese partner.
- The IT Park has dual feed power supply plus DG back-up and the cost of power is only INR 3.23 per unit at present.