Bhutan
Key entity, tax, banking, visa, and compliance guidance for foreign founders incorporating in Bhutan.
Foreign Ownership Eligibility
Bhutan welcomes 100% foreign-owned companies
Fully remote formation — you never need to set foot in the country.
- 100% foreign ownership permitted in most sectors
- Legal system: Mixed (Common Law and Buddhist tradition)
- Primary registration authority: Office of the Registrar of Companies (ORC Bhutan)
- Registry website: https://www.mti.gov.bt
- Tax authority: Department of Revenue and Customs (DRC Bhutan)
- Corporate income tax (CIT): 25% - Source: CIT: 25% (Bhutan DRC). No VAT.
- VAT / sales tax: 0%
- Estimated formation timeline: 7-14 days - Via ORC Bhutan. Source: MTI Bhutan
- Annual compliance and renewal obligations apply
Ownership
100% Foreign OK
Formation
100% Remote
Tax at a glance
Bhutan Tax Overview
25%
Corporate Income Tax (CIT)
CIT: 25% (Bhutan DRC). No VAT.
0%
VAT / Sales Tax
CIT: 25% (Bhutan DRC). No VAT.
Department of Revenue and Customs (DRC Bhutan)
Tax Authority
https://www.drc.gov.bt
Pros & cons
Advantages & Considerations
Key Advantages
100% foreign ownership permitted in most sectors
Legal framework: Mixed (Common Law and Buddhist tradition)
Primary registry: Office of the Registrar of Companies (ORC Bhutan)
Tax rate: 25% CIT
Incorporated company has access to Bhutan market
Considerations
Local professional guidance recommended for regulatory compliance
Banking KYC requirements can be extensive - allow time for account opening
Professional services market may be limited compared to major financial centres
Verify sector-specific restrictions before investing
Currency risk: BTN fluctuations may affect USD-denominated investments
Incorporation Process
The process is strictly digital. Each stage builds on the previous one.
Name reservation
Prepare incorporation documents
Submit registration application
Tax registration
Open corporate bank account
What you'll pay
Cost Architecture
Government Fees
Annual Ongoing
Professional Services
Government fees change frequently. Always verify current fee schedule at https://www.mti.gov.bt before committing.
Still unsure about costs?
These are estimates — your actual cost depends on your structure
Every Bhutan setup is different. A 15-minute call with one of our specialists will give you a personalised cost breakdown — completely free.
Fintech & Banking
Can non-residents open accounts without visiting? NO.
Banking options for non-resident founders in Bhutan. Remote account opening availability varies by institution.
| Institution | Type | Ease for Non-Residents | Notes |
|---|---|---|---|
| Bank of Bhutan (BoB) | Traditional bank | Low (Visit Required) | |
| Bhutan National Bank (BNB) | Traditional bank | Low (Visit Required) | |
| Druk Punjab National Bank | Traditional bank | Low (Visit Required) |
Regulatory requirements
Annual Compliance Matrix
| Requirement | Deadline | Details |
|---|---|---|
Annual company filing | Ongoing | File annual returns with Office of the Registrar of Companies (ORC Bhutan) to maintain good standing. |
Corporate income tax return | Ongoing | Submit annual CIT return to Department of Revenue and Customs (DRC Bhutan). Rate: 25%. |
VAT filing | Ongoing | VAT-registered businesses file periodically. Rate: 0%. Verify threshold with Department of Revenue and Customs (DRC Bhutan). |
Accounting records | Ongoing | Maintain statutory books per Mixed (Common Law and Buddhist tradition) requirements. |
Beneficial ownership disclosure | Ongoing | Verify current UBO requirements in Bhutan. |
Frequently Asked
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