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Thimphu, Bhutan Attorneys in related practice areas.
Understanding the legal environment is critical while doing business in Thimphu, the capital and largest city of the Kingdom of Bhutan. While Bhutan is known globally for its unique Gross National Happiness index, it also offers a vibrant economic environment with room for local and foreign investment. The country's legal framework supports ease of business, and local laws are designed to encourage sustainable, equitable, and responsible business development.
Whether you're starting a new business, seeking to expand existing operations, or dealing with a dispute, having professional legal guidance can help mitigate risks and ensure that you meet all regulatory requirements. In particular, issues related to corporate structuring, employment laws, contracts, taxes, real estate, licensing, and intellectual property might require specialized legal help.
The Bhutanese legal system is largely influenced by English law, and its Constitution provides for an independent judiciary to enforce legal codes, protect rights, and resolve disputes. Key laws relevant to businesses include the Companies Act of Bhutan 2016, Labour and Employment Act 2007, and Foreign Direct Investment Policy 2019. These laws guide businesses on diverse issues such as business registration, corporate governance, labor rights, and foreign investment.
Yes, foreign investors can establish and own companies in Bhutan under certain conditions and with prior approval, as per the Foreign Direct Investment Policy 2019.
The Intellectual Property Division of Bhutan is responsible for the protection of intellectual property rights. This includes trademarks, patents, industrial designs and copyrights. It is part of the Ministry of Economic Affairs.
The Labour and Employment Act 2007 is Bhutan's key legislation for labour rights, ensuring fair and favourable conditions of employment and effective redressal of labour disputes.
Bhutan implements a progressive tax system. Businesses are subject to income tax and indirect taxes such as Gross Receipt Tax (GRT), Business Income Tax (BIT), and Customs duty.
Bhutan has a bifurcated dispute resolution system. It has formal courts as well as alternative dispute resolution mechanisms like arbitration and mediation. The Judiciary of Bhutan is responsible for this.
For further information, refer to the official websites of the Ministry of Economic Affairs and the Royal Court of Justice. The Bhutan Chamber of Commerce & Industry is also a valuable resource for business-related queries. The Department of Revenue and Customs handles matters related to business taxation.
If you need legal assistance in business operations, consult a legal professional with expertise in Bhutanese law. They will aid in better understanding local legal requirements, identifying potential legal challenges, and finding effective strategies to address them.
