Business
2016 Companies Act with tight foreign investment screening
Companies register under the Companies Act 2016. Foreign investment requires approval under the FDI Policy, with minimum capital thresholds and sector restrictions, and many activities are reserved for Bhutanese nationals.
Governing law
- Companies Act of the Kingdom of Bhutan, 2016
- FDI Policy, 2019
- Movable and Immovable Property Act
In practice
Foreign equity is generally capped below full ownership outside priority sectors, and minimum investment thresholds differ between manufacturing and services. Bhutan's small market means most foreign activity is in hydropower, tourism and IT-enabled services. Licensing runs through the Ministry of Industry, Commerce and Employment, and a local partner is required for many categories.