Location: 4th Floor, Rin Tse Building, 

Main Traffic Area, Norzin Lam, 

Thimphu, Bhutan, 11001

 

Phone: +97577961648

 

Email: [email protected]

 

Alt: [email protected]

Location: 4th Floor, Rin Tse Building, 

Main Traffic Area, Norzin Lam, 

Thimphu, Bhutan, 11001

 

Phone: +97577961648

 

Email: [email protected]

 

Alt: [email protected]

Invest in Bhutan

━ Invest in Bhutan

Secure, Compliant, and Informed Investment in Bhutan Starts with the Right Legal Partner

Basnet Attorneys and Law provides clear, practical, and reliable legal services to foreign investors looking to establish and grow their businesses in Bhutan. Our team has extensive experience advising clients from across the world on investments across all sectors permitted under Bhutan’s Foreign Direct Investment (FDI) Rules and Regulations 2025.


Bhutan’s regulatory environment is unique. It requires more than a good business idea, it demands compliance, patience, and precise legal guidance. We help our clients avoid common mistakes, secure the right approvals, and protect their investments at the outset.

Why Bhutan

Why Bhutan, Why Now?

Nestled between two economic giants, India and China, Bhutan offers international investors a unique gateway to markets with nearly 3 billion consumers. With political stability, transparent regulations, and a strong commitment to sustainable development, Basnet Attorneys & Law guides your investment through incorporation, approvals, and compliance, ensuring it is secure, well-positioned and ready to grow.

A Purpose-Driven and Politically Stable Economy

Bhutan offers political stability, transparent governance, and clear policy direction rarely found in emerging markets. Guided by the philosophy of Gross National Happiness (GNH), the country prioritizes sustainable, long-term development, creating a predictable and trusted environment for serious investors.

Investor-Friendly Policies with Strong Legal Protection

Bhutan’s pro-investment framework allows up to 100% foreign ownership in priority sectors, supported by legal safeguards against nationalization and expropriation. Investors also benefit from robust intellectual property protection aligned with international conventions.

Streamlined Market Entry and Regulatory Clarity

The Invest Bhutan Division acts as the single window for foreign investors. The FDI Registration Certificate is issued within three working days of a complete application, priority sector projects are approved within three working days of complete documents, and other projects within five working days of the business plan and sectoral clearances.

Financial Freedom and Capital Repatriation

Foreign investors may repatriate invested capital and capital gains in the currency of investment in accordance with the relevant laws, and dividends in the currency of investment without restriction. FDI companies can also obtain convertible currency and Indian Rupees from the Royal Monetary Authority for capital goods, raw materials and remuneration.

Skilled Workforce and Cost-Efficient Operations

A young, English-speaking workforce supported by government skills initiatives, combined with subsidized clean hydropower electricity, delivers a competitive operating environment for service, technology, and knowledge-based industries.

Sustainability, Exclusivity, and Market Access

With clean air, low-emission development, and a globally admired sustainability model, Bhutan offers a distinctive and exclusive investment proposition. Preferential duty-free access to India further strengthens Bhutan’s position as a strategic regional base.

One of the Best Places to Live and Work in Asia

Bhutan is widely regarded as one of the most desirable places to live in Asia, offering an exceptional quality of life defined by safety, clean air, strong community values, and access to unspoiled natural environments. The country consistently prioritizes well-being, environmental protection, and balanced development, creating a living environment that supports both personal fulfillment and professional focus.

For investors, founders, and executives, Bhutan offers more than a stable investment destination. It provides a calm, secure, and healthy setting to live, work, and build long-term ventures. Low crime, political stability, excellent environmental standards, and a strong sense of social cohesion make Bhutan an ideal base for those seeking quality of life alongside sustainable business growth.

Ready to Explore Investment Opportunities in Bhutan?


Discover the perfect sector for your investment in Bhutan. Bhutan actively welcomes responsible, well-planned foreign investment:

  1. Agriculture and animal husbandry, production or processing: floriculture, horticulture, piggery, poultry, dairy, aquaculture, apiculture and seed production, with up to 100% foreign ownership
  2. Plantation crops, with up to 100% foreign ownership
  3. Fruit, vegetable and food processing
  4. Wood-based and non-wood forest production
  5. Renewable energy: solar, wind and other renewable energy projects
  6. Water-based production, animal feed, bio-fertilisers and bio-pesticides
  7. Pharmaceutical, cosmeceutical and nutraceutical products
  8. Mineral beneficiation and processing beyond crushing or powdering
  9. Electronics, electricals and building materials
  10. Solar thermal systems and solar PV manufacturing
  1. Education: primary, secondary and tertiary education, and technical and vocational education
  2. Health: multispecialty hospitals, specialised healthcare including laboratory and diagnostic services, specialised dental services and specialised traditional medical services
  3. Hotels and resorts: five-star and above, with up to 100% foreign ownership, four-star hotels and wellness centres
  4. Air transport: aeroplane and helicopter operations, glider, paraglider and balloon operations, maintenance, repair and overhaul, and aviation training
  5. Infrastructure: IT parks, industrial parks, airport infrastructure, township and regional infrastructure, and sports and recreation facilities
  6. IT and IT-enabled services, inside or outside an IT park, with up to 100% foreign ownership
  7. Construction services
  8. Waste management: recycling of domestic waste and waste management services
  9. Financial services: composite insurance, cross-border electronic payments and money transmission, credit rating agencies and venture capital funds for startups
  10. Other service activities, including head office, consultancy and research and development services, are open as Other Activities with a minimum project cost of Nu. 25 million and up to 74% foreign ownership
  1. News media
  2. Distribution services, including dealership, wholesale, retail and micro trade
  3. Standalone mines for the sale of minerals in primary or raw form
  4. Mineral processing and beneficiation up to crushing and powdering
  5. Hotels of three stars and below
  6. General health services
  7. Industries that do not meet the certificate of origin requirements
  8. Real estate businesses
  9. Activities in the Prohibited List of the Royal Government

Sectors, Minimum Project Cost and Foreign Ownership

Under the Foreign Direct Investment Rules and Regulations 2025, in force from 18 July 2025, which replaced the FDI Policy 2019 and the FDI Regulations 2019.

SectorMinimum Project CostMaximum Foreign EquitySpecial ConditionsActivities
Priority Manufacturing Sectors (Schedule I)
Agriculture and Animal HusbandryNu. 20 million100%Production or processingFloriculture, horticulture, animal husbandry including piggery, poultry and dairy, aquaculture, apiculture, production of seeds
Plantation CropsNu. 20 million100%-Plantation crops
Fruit, Vegetable and Food ProcessingNu. 10 million74%-Processing of fruit, vegetables and food products
Wood-based Forest ProductionNu. 35 million74%-Wood-based forest products
Non-wood Forest ProductionNu. 10 million74%-Non-wood forest products
Renewable EnergyNu. 20 millionAs per sector policyForeign equity set by the sector policySolar and wind energy, other renewable energy
ManufacturingNu. 40 million74%-Water-based production, animal feed, bio-fertilisers and bio-pesticides, pharmaceutical, cosmeceutical and nutraceutical products, mineral beneficiation and processing beyond crushing or powdering, electronics and electricals, building materials, solar thermal systems and solar PV manufacturing
Priority Service Sectors (Schedule II)
EducationNu. 200 million74%Education sector policies applyPrimary, secondary and tertiary education
Technical and Vocational EducationNu. 30 million74%-Technical and vocational education and training
Multispecialty Hospital ServicesNu. 400 million100%Health sector policies applyMultispecialty hospitals
Specialised Healthcare ServicesNu. 100 million100%Health sector policies applySpecialised healthcare, including laboratory and diagnostic services
Specialised Dental ServicesNu. 25 million100%-Specialised dental clinics
Specialised Traditional Medical ServicesNu. 30 million74%-Specialised traditional medical services
Hotels: Five-Star and AboveNu. 200 million100%-Five-star hotels and resorts and above
Hotels: Four-StarNu. 50 million74%Three-star and below are on the negative listFour-star hotels
Wellness CentresNu. 30 million74%-Wellness centres
Aeroplane and Helicopter OperationsNu. 200 million100%Civil aviation rules applyAeroplane and helicopter operations
Glider, Paraglider and Balloon OperationsNu. 50 million100%-Glider, paraglider and balloon operations
Aviation Maintenance, Repair and OverhaulNu. 100 million100%-Maintenance, repair and overhaul organisations
Aviation Training OrganisationsNu. 100 million100%-Aviation training organisations
Sports and Recreation FacilitiesNu. 30 million74%-Sports and recreation facilities
Infrastructure DevelopmentNu. 200 million100%-IT parks, industrial parks, airport infrastructure, township and regional infrastructure development
IT and IT-enabled Services inside an IT ParkNo minimum100%-IT and IT-enabled services located in an IT park
IT and IT-enabled Services outside an IT ParkNu. 3 million100%-IT and IT-enabled services located outside an IT park
Construction ServicesNu. 50 million74%-Construction services
Waste ManagementNu. 25 million74%-Recycling of domestic waste, waste management services
Composite InsuranceAs per the Financial Services Act, rules and regulations49%Licensing under the financial services lawDirect insurance business as a composite insurer (life and non-life)
Cross-border Payments and Money TransmissionAs per the Financial Services Act, rules and regulations74%Licensing under the financial services lawCross-border electronic payments and money transmission services
Credit Rating AgencyAs per the Financial Services Act, rules and regulations100%Licensing under the financial services lawCredit rating agencies
Venture Capital Fund for StartupsAs per the Financial Services Act, rules and regulations100%The fund's investments in startups are not treated as FDI (Rule 10)Venture capital funds investing in impact startups in any sector outside the negative list
Other Activities (Rules 7 and 8)
ManufacturingNu. 50 million74%Value addition of 30% or more; a positive effect on foreign reserves; creation of quality jobsManufacturing activities not listed in Schedules I to III
ServicesNu. 25 million74%A positive effect on foreign reserves; creation of quality jobsService activities not listed in Schedules I to III, including head office, consultancy and research and development services
Priority Manufacturing Sectors (Schedule I)
Agriculture and Animal Husbandry
Minimum Project Cost
Nu. 20 million
Maximum Foreign Equity
100%
Special Conditions
Production or processing
Activities
Floriculture, horticulture, animal husbandry including piggery, poultry and dairy, aquaculture, apiculture, production of seeds
Plantation Crops
Minimum Project Cost
Nu. 20 million
Maximum Foreign Equity
100%
Special Conditions
-
Activities
Plantation crops
Fruit, Vegetable and Food Processing
Minimum Project Cost
Nu. 10 million
Maximum Foreign Equity
74%
Special Conditions
-
Activities
Processing of fruit, vegetables and food products
Wood-based Forest Production
Minimum Project Cost
Nu. 35 million
Maximum Foreign Equity
74%
Special Conditions
-
Activities
Wood-based forest products
Non-wood Forest Production
Minimum Project Cost
Nu. 10 million
Maximum Foreign Equity
74%
Special Conditions
-
Activities
Non-wood forest products
Renewable Energy
Minimum Project Cost
Nu. 20 million
Maximum Foreign Equity
As per sector policy
Special Conditions
Foreign equity set by the sector policy
Activities
Solar and wind energy, other renewable energy
Manufacturing
Minimum Project Cost
Nu. 40 million
Maximum Foreign Equity
74%
Special Conditions
-
Activities
Water-based production, animal feed, bio-fertilisers and bio-pesticides, pharmaceutical, cosmeceutical and nutraceutical products, mineral beneficiation and processing beyond crushing or powdering, electronics and electricals, building materials, solar thermal systems and solar PV manufacturing
Priority Service Sectors (Schedule II)
Education
Minimum Project Cost
Nu. 200 million
Maximum Foreign Equity
74%
Special Conditions
Education sector policies apply
Activities
Primary, secondary and tertiary education
Technical and Vocational Education
Minimum Project Cost
Nu. 30 million
Maximum Foreign Equity
74%
Special Conditions
-
Activities
Technical and vocational education and training
Multispecialty Hospital Services
Minimum Project Cost
Nu. 400 million
Maximum Foreign Equity
100%
Special Conditions
Health sector policies apply
Activities
Multispecialty hospitals
Specialised Healthcare Services
Minimum Project Cost
Nu. 100 million
Maximum Foreign Equity
100%
Special Conditions
Health sector policies apply
Activities
Specialised healthcare, including laboratory and diagnostic services
Specialised Dental Services
Minimum Project Cost
Nu. 25 million
Maximum Foreign Equity
100%
Special Conditions
-
Activities
Specialised dental clinics
Specialised Traditional Medical Services
Minimum Project Cost
Nu. 30 million
Maximum Foreign Equity
74%
Special Conditions
-
Activities
Specialised traditional medical services
Hotels: Five-Star and Above
Minimum Project Cost
Nu. 200 million
Maximum Foreign Equity
100%
Special Conditions
-
Activities
Five-star hotels and resorts and above
Hotels: Four-Star
Minimum Project Cost
Nu. 50 million
Maximum Foreign Equity
74%
Special Conditions
Three-star and below are on the negative list
Activities
Four-star hotels
Wellness Centres
Minimum Project Cost
Nu. 30 million
Maximum Foreign Equity
74%
Special Conditions
-
Activities
Wellness centres
Aeroplane and Helicopter Operations
Minimum Project Cost
Nu. 200 million
Maximum Foreign Equity
100%
Special Conditions
Civil aviation rules apply
Activities
Aeroplane and helicopter operations
Glider, Paraglider and Balloon Operations
Minimum Project Cost
Nu. 50 million
Maximum Foreign Equity
100%
Special Conditions
-
Activities
Glider, paraglider and balloon operations
Aviation Maintenance, Repair and Overhaul
Minimum Project Cost
Nu. 100 million
Maximum Foreign Equity
100%
Special Conditions
-
Activities
Maintenance, repair and overhaul organisations
Aviation Training Organisations
Minimum Project Cost
Nu. 100 million
Maximum Foreign Equity
100%
Special Conditions
-
Activities
Aviation training organisations
Sports and Recreation Facilities
Minimum Project Cost
Nu. 30 million
Maximum Foreign Equity
74%
Special Conditions
-
Activities
Sports and recreation facilities
Infrastructure Development
Minimum Project Cost
Nu. 200 million
Maximum Foreign Equity
100%
Special Conditions
-
Activities
IT parks, industrial parks, airport infrastructure, township and regional infrastructure development
IT and IT-enabled Services inside an IT Park
Minimum Project Cost
No minimum
Maximum Foreign Equity
100%
Special Conditions
-
Activities
IT and IT-enabled services located in an IT park
IT and IT-enabled Services outside an IT Park
Minimum Project Cost
Nu. 3 million
Maximum Foreign Equity
100%
Special Conditions
-
Activities
IT and IT-enabled services located outside an IT park
Construction Services
Minimum Project Cost
Nu. 50 million
Maximum Foreign Equity
74%
Special Conditions
-
Activities
Construction services
Waste Management
Minimum Project Cost
Nu. 25 million
Maximum Foreign Equity
74%
Special Conditions
-
Activities
Recycling of domestic waste, waste management services
Composite Insurance
Minimum Project Cost
As per the Financial Services Act, rules and regulations
Maximum Foreign Equity
49%
Special Conditions
Licensing under the financial services law
Activities
Direct insurance business as a composite insurer (life and non-life)
Cross-border Payments and Money Transmission
Minimum Project Cost
As per the Financial Services Act, rules and regulations
Maximum Foreign Equity
74%
Special Conditions
Licensing under the financial services law
Activities
Cross-border electronic payments and money transmission services
Credit Rating Agency
Minimum Project Cost
As per the Financial Services Act, rules and regulations
Maximum Foreign Equity
100%
Special Conditions
Licensing under the financial services law
Activities
Credit rating agencies
Venture Capital Fund for Startups
Minimum Project Cost
As per the Financial Services Act, rules and regulations
Maximum Foreign Equity
100%
Special Conditions
The fund's investments in startups are not treated as FDI (Rule 10)
Activities
Venture capital funds investing in impact startups in any sector outside the negative list
Other Activities (Rules 7 and 8)
Manufacturing
Minimum Project Cost
Nu. 50 million
Maximum Foreign Equity
74%
Special Conditions
Value addition of 30% or more; a positive effect on foreign reserves; creation of quality jobs
Activities
Manufacturing activities not listed in Schedules I to III
Services
Minimum Project Cost
Nu. 25 million
Maximum Foreign Equity
74%
Special Conditions
A positive effect on foreign reserves; creation of quality jobs
Activities
Service activities not listed in Schedules I to III, including head office, consultancy and research and development services

The schedules are not exhaustive; activities similar or related to those listed may be considered on reasonable grounds. Project cost is the total capital cost excluding working capital. Where the investor applies for the same activity in different locations, the thresholds apply to each location separately (Rule 62).

Closed to Foreign Investment: the Negative List (Schedule III)

  • News media
  • Distribution services, including dealership, wholesale, retail and micro trade
  • Standalone mines for the sale of minerals in primary or raw form
  • Mineral processing and beneficiation up to crushing and powdering
  • Hotels of three stars and below
  • General health services
  • Industries that do not meet the certificate of origin requirements
  • Real estate businesses
  • Activities in the Prohibited List of the Royal Government

Key Rules for Foreign Investors

Open sectors
FDI is allowed in every sector except those on the negative list (Rule 4). Investment in an existing Bhutanese business is allowed on the same terms as a new one (Rule 9).
Minimum foreign stake
The foreign investor must own at least 20% of the company, or 10% for a foreign institutional investor (Rule 13). The equity must be fully subscribed.
Currency and injection
Investment is made in convertible currency, or in Indian Rupees for Indian investors (Rule 11). The full equity must be injected within three years of approval or before operations begin, whichever is earlier, and the Royal Monetary Authority and the Department of Industry notified within 30 working days of receipt (Rules 15 and 16).
Approval times
The FDI Registration Certificate is issued within three working days of a complete application and is valid for one year (Rules 63 and 69). Project approval follows within five working days of the business plan and sectoral clearances, or three working days for priority sector projects through the Invest Bhutan Division (Rules 77 to 79). The business licence is obtained online within one month of approval (Rule 84).
Incorporation
Every FDI business is incorporated under the Companies Act of Bhutan 2016 after the FDI Registration Certificate is issued (Rules 12 and 76).
Repatriation
Invested capital and capital gains may be repatriated in the currency of investment under the relevant laws, and dividends in the currency of investment without restriction (Rules 26 and 29). Royalties and fees under approved collaboration or franchise agreements may be paid up to 10% of net sales a year (Rule 31).
Investor card and visas
Investors whose investment exceeds Nu. 15 million receive an investor card on commencement of business, giving three years' residence, renewable, with exemption from the Sustainable Development Fee for the investor, spouse and dependents (Rules 37 and 38). Multiple-entry visas for investors, directors and expatriate staff are processed within three working days (Rule 43).
Land
Land is available on lease. State land and industrial park land is leased for an initial 30 years, extendable, and a Bhutanese partner may contribute freehold land as equity (Rules 55 to 57).
Protection and disputes
Investments are not subject to nationalisation or expropriation except in the national interest, with prompt and fair compensation at market value, freely transferable (Rule 50). FDI companies receive national treatment and the same fiscal incentives as domestic companies (Rules 51 and 52). Disputes may go to alternative dispute resolution, the courts of Bhutan, or international arbitration by agreement (Rules 121 and 122).
Get Investment Help in Bhutan 

Need Help Investing in Bhutan?

Basnet Attorneys & Law advises and assists foreign investors in establishing FDI companies in Bhutan. The firm is a certified filing agent with the Corporate Regulatory Authority and handles incorporation directly. Contact us for a compliant and efficient incorporation process.