Doing Business with Bhutan

Exporting to Bhutan involves several steps to ensure compliance with local regulations. Here’s a detailed guide:

1. Conduct Market Research

   • Analyze the demand for your product in Bhutan.
   • Identify potential competitors and market entry strategies.

2. Verify Product Compliance

   • Ensure your product meets Bhutanese standards and regulations.
   • Contact the Bhutan Standards Bureau for guidance.
   • Bhutan Standards Bureau Website

3. Register Your Business

   • Ensure your business is legally registered to export.
   • Contact your local Chamber of Commerce for necessary documentation.

4. Obtain Necessary Certifications

   • Identify any required certifications or licenses for your product.
   • Consult with Bhutan Customs for guidance.
   • Bhutan Customs Website

5. Understand Tariffs and Taxes

   • Check applicable import duties and taxes for your goods.
   • Use Bhutan’s tariff schedule for detailed information.

6. Arrange Logistics and Shipping

   • Choose a reliable shipping company familiar with logistics in Bhutan.
   • Ensure all shipping documents are accurately completed.

7. Prepare Documentation

   • Include commercial invoices, packing lists, and certificates of origin.
   • Ensure compliance with Bhutanese customs requirements.

8. Customs Clearance

   • Work with a customs broker to facilitate the clearance process.
   • Contact Bhutan Customs for detailed procedures.
   • Bhutan Customs Website

9. Distribution and Sales

   • Establish distribution channels within Bhutan.
   • Consider partnerships with local businesses for effective market penetration.

Key Contacts

• Bhutan Standards Bureau
  • Website: bsb.gov.bt
• Bhutan Customs
  • Website: mof.gov.bt

Importing goods into Bhutan involves several steps to ensure compliance with local regulations. Here’s a detailed guide:

1. Research Import Regulations

   • Understand the import requirements for your goods.
   • Consult the Bhutan Trade websites for regulations.

2. Register Your Business

   • Ensure your business is registered and has the necessary licenses.
   • Contact the Department of Trade for registration details.

3. Check Product Compliance

   • Ensure your products meet Bhutanese standards and regulations.
   • Contact the Bhutan Standards Bureau for guidance.
   • Bhutan Standards Bureau Website

4. Understand Tariffs and Taxes

   • Check applicable import duties and taxes for your goods.
   • Use Bhutan’s tariff schedule for detailed information.

5. Arrange Shipping and Logistics

   • Select a reputable shipping company.
   • Ensure compliance with shipping and labeling requirements.

6. Prepare Import Documentation

   • Include commercial invoices, packing lists, and certificates of origin.
   • Verify documentation with Bhutan Customs.

7. Customs Clearance

   • Work with a customs broker to facilitate the clearance process.
   • Pay any duties and taxes required for the import.
   • Bhutan Customs Website

8. Receive and Distribute Goods

   • Arrange for the delivery and distribution of goods upon clearance.
   • Establish partnerships with local distributors if needed.

Key Contacts

• Bhutan Standards Bureau
  • Website: bsb.gov.bt
• Bhutan Customs
  • Website: mof.gov.bt

Incorporating a company in Bhutan involves several key steps. Here’s a detailed guide:

1. Choose a Business Structure

   • Decide on the legal form of your company (e.g., Private Limited, Public Limited).
   • Consult with a legal advisor to choose the best structure for your needs.

2. Select a Company Name

   • Ensure the name is unique and complies with Bhutanese regulations.
   • Verify availability through the Ministry of Economic Affairs.
   • Ministry of Economic Affairs Website

3. Prepare Incorporation Documents

   • Draft the Articles of Incorporation.
   • Include details of directors, shareholders, and registered office.

4. Register with the Registrar of Companies

   • Submit the incorporation documents to the Registrar of Companies.
   • Pay the registration fee (approximately Nu. 1,000).

5. Obtain a Taxpayer Number

   • Register with the Department of Revenue and Customs to obtain a Taxpayer Number.
   • Department of Revenue and Customs Website

6. Open a Corporate Bank Account

   • Open an account with a local bank to handle business transactions.

7. Register with the National Pension and Provident Fund

   • Register if you plan to hire employees.
   • NPPF Website

8. Obtain Necessary Permits and Licenses

   • Depending on your business activity, additional permits may be required.

Key Contacts

• Ministry of Economic Affairs
  • Website: moea.gov.bt
• Department of Revenue and Customs
  • Website: drc.gov.bt
• National Pension and Provident Fund
  • Website: nppf.org.bt

Setting up a manufacturing plant in Bhutan involves several steps. Here’s a detailed guide:

1. Conduct Market Research

   • Analyze local demand and industry trends.
   • Evaluate potential competitors and supply chain logistics.

2. Choose a Suitable Location

   • Identify industrial zones with necessary infrastructure.
   • Contact the Bhutan Investment and Trade Department for available sites.
   • Bhutan Investment and Trade Website

3. Register Your Business

   • Incorporate your company in Bhutan.
   • Follow the steps for business registration through the Ministry of Economic Affairs.
   • Ministry of Economic Affairs Website

4. Obtain Necessary Permits

   • Apply for construction and environmental permits.
   • Contact the National Environmental Commission for specific requirements.
   • National Environment Commission Website

5. Secure Financing

   • Explore funding options through local banks or investment agencies.
   • Consider government incentives for manufacturing.

6. Design and Construct the Facility

   • Hire local architects and contractors familiar with Bhutanese regulations.
   • Ensure compliance with building codes and safety standards.

7. Install Equipment and Machinery

   • Import necessary machinery, ensuring compliance with local regulations.
   • Coordinate with Bhutan Customs for smooth importation.
   • Bhutan Customs Website

8. Recruit and Train Staff

   • Hire local talent and provide necessary training.
   • Contact the Department of Labour and Human Resources for assistance.

9. Register for Taxation

   • Obtain a Taxpayer Number and register for any applicable taxes.

10. Begin Operations

    • Ensure all systems are in place and test the production line.
    • Implement quality control measures.

Key Contacts

• Bhutan Investment and Trade Department
  • Website: moice.gov.bt
• National Environment Commission
  • Website: nec.gov.bt
• Bhutan Customs
  • Website: mof.gov.bt

Registering a trademark in Bhutan involves several steps to ensure legal protection of your brand. Here’s a detailed guide:

1. Conduct a Trademark Search

   • Check if your trademark is available and not already registered.
   • Use the Department of Intellectual Property’s database.
   • Department of Intellectual Property Website

2. Prepare Your Application

   • Gather necessary information: trademark representation, goods/services classification, and applicant details.

3. Submit Your Application

   • File the application with the Department of Intellectual Property.
   • Ensure all documents are complete and accurate.

4. Pay the Application Fee

   • The application fee is typically around Nu. 3,000.

5. Examination Process

   • The department reviews the application for compliance and potential conflicts.
   • Respond to any objections or requests for additional information.

6. Publication and Opposition

   • If approved, the trademark is published for opposition.
   • There is a period for oppositions, typically a few months.

7. Registration and Certification

   • If no oppositions arise, the trademark is registered.
   • Receive a certificate of registration.

8. Maintain and Renew the Trademark

   • Trademarks are valid for ten years and can be renewed indefinitely.
   • Submit renewal applications before expiry to maintain protection.

Key Contacts

• Department of Intellectual Property
  • Website: ipbhutan.gov.bt

Resolving commercial disputes in Bhutan involves several steps and options. Here’s a guide on the process:

1. Attempt Negotiation

   • Start by negotiating directly with the other party to find an amicable solution.

2. Mediation

   • Engage a neutral third-party mediator to facilitate discussions.
   • Contact the Bhutan Chamber of Commerce and Industry for mediation services.
   • Bhutan Chamber of Commerce and Industry Website

3. Arbitration

   • Consider arbitration as an alternative to court litigation.
   • It is generally quicker and can be less costly.
   • Utilize local arbitration services through the Bhutan Alternative Dispute Resolution Centre.

4. Seek Legal Advice

   • Consult with a lawyer specializing in commercial law for guidance on your case.

5. File a Lawsuit

   • If other methods fail, you can file a lawsuit in the Commercial Court of Bhutan.
   • Court fees vary; consult with the court for specific details.

6. Court Proceedings

   • Prepare for the legal process, which includes hearings and presenting evidence.

7. Judgment and Enforcement

   • If a judgment is made, ensure its enforcement through legal channels.

Costs

• Mediation and Arbitration Fees: Vary depending on the service provider.
• Court Filing Fees: Dependent on the case type and court; consult the court for specifics.
• Legal Fees: Vary based on the lawyer and complexity of the case.

Key Contacts

• Bhutan Chamber of Commerce and Industry (BCCI)
  • Website: bcci.bt
• Bhutan Alternative Dispute Resolution Centre
  • Contact through the BCCI for specific details.

When considering doing business in Bhutan, it’s important to understand various factors that can influence operations. Here’s an overview of social, cultural, political, and economic aspects:

Social and Cultural Factors

• Language and Communication
  • The official language is Dzongkha, but English is widely used in business.
  • Understanding local customs and the importance of relationships is crucial.
• Business Etiquette
  • Building trust and relationships is essential.
  • Meetings often begin with informal conversation to establish rapport.

Political Environment

• Government Structure
  • Bhutan is a constitutional monarchy with a stable political climate.
  • The government supports sustainable development and foreign investment.
• Regulatory Environment
  • Efforts are being made to simplify business regulations and support entrepreneurship.

Economic and Foreign Exchange Factors

• Currency
  • The currency is the Bhutanese Ngultrum (BTN), which is pegged to the Indian Rupee (INR).
• Investment Incentives
  • Bhutan offers incentives for foreign investors, including tax exemptions for certain sectors.

Rule of Law

• Legal System
  • Based on civil and customary law, providing a structured legal framework.
  • The judiciary is independent, though processes may be lengthy.
• Property Rights
  • Protection for property rights and contracts is in place, but enforcement can be challenging.

Infrastructure

• Transportation and Logistics
  • Developing infrastructure with improvements in roads and connectivity.
  • Limited access to international shipping; reliance on neighboring countries.
• Telecommunications
  • Growing telecommunications network supporting business needs.

Key URLs

• Bhutan Chamber of Commerce and Industry (BCCI): bcci.bt
• Ministry of Economic Affairs: moea.gov.bt
• Department of Intellectual Property: ipbhutan.gov.bt