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Bhutan

Legal form:

LLC, LLP, PLC

Delivery:

2 weeks

Price: $

3000

Payment methods:

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Requirements:

Document checklist:

Local legal address (Handled by B2B Hub) 

1.Passport
2.Proof of Residence 

Registrar

Organization name

Abbreviation

Country

Bhutan

Email

Phone

Listing
Open website
UK comapny formation (1).webp

About

Bhutan

Capital
Official languages
Population 
Currency

ISO 4217

Thimphu

Dzongkha and English

754,450

Ngultrum

BTN

FAQ

Q: What are the basic requirements for company formation in Bhutan?

A: To form a company in Bhutan, you need to have a minimum of two shareholders and one director. The shareholders and directors can be the same individuals or entities. Additionally, you must have a registered office address in Bhutan and a minimum paid-up capital of BTN 100,000.


Q: What are the types of companies that can be formed in Bhutan?

A: The types of companies that can be formed in Bhutan are Private Limited Company, Public Limited Company, and Sole Proprietorship.


Q: What is the process of registering a company in Bhutan?

A: The process of registering a company in Bhutan involves several steps, including reserving a company name, obtaining a business license, obtaining a tax identification number, registering with the Companies Registrar, obtaining the necessary permits and licenses, and opening a bank account.


Q: How long does it take to register a company in Bhutan?

A: The time required to register a company in Bhutan depends on the type of company and the complexity of the registration process. On average, it takes around 2-3 months to complete the registration process.


Q: What are the costs associated with registering a company in Bhutan?

A: The costs associated with registering a company in Bhutan include registration fees, legal fees, and the cost of obtaining the necessary permits and licenses. The total cost can vary depending on the type of company and the complexity of the registration process.


Q: Do I need to be a Bhutanese citizen to register a company in Bhutan?

A: No, you do not need to be a Bhutanese citizen to register a company in Bhutan. Foreign nationals and foreign entities can register a company in Bhutan, subject to certain restrictions and regulations.


Q: Are there any tax incentives for companies in Bhutan?

A: Yes, the Bhutanese government offers various tax incentives to promote economic development in the country. These incentives include tax holidays, duty exemptions, and investment allowances.


Q: What are the annual compliance requirements for companies in Bhutan?

A: All companies in Bhutan are required to file annual tax returns and annual financial statements with the relevant authorities. Additionally, companies are required to hold annual general meetings and maintain proper accounting records.


Q: Can I own 100% of the shares of a company in Bhutan?

A: Yes, foreign nationals and foreign entities can own 100% of the shares of a company in Bhutan, subject to certain restrictions and regulations.


Q: What are the restrictions on foreign investment in Bhutan?

A: The Bhutanese government encourages foreign investment in certain sectors of the economy but imposes restrictions on foreign ownership in certain other sectors, such as the media, telecommunications, and banking. Additionally, foreign investors must obtain approval from the Bhutanese government before investing in certain sectors of the economy.

Economy

Bhutan is a small landlocked country in South Asia, located between India and China. It has a population of approximately 754,000 people and a GDP of $2.6 billion. The economy of Bhutan is largely based on agriculture, forestry, and tourism. Agriculture accounts for about 60% of the country’s GDP, while forestry and tourism contribute about 20% each. The country has seen steady economic growth in recent years, with an average annual growth rate of 6.4% between 2011 and 2018. Bhutan has also seen a decrease in poverty, with the poverty rate dropping from 23.2% in 2007 to 12.8% in 2018. The country has also made significant progress in terms of human development, with the Human Development Index (HDI) increasing from 0.541 in 2010 to 0.637 in 2018. Bhutan has also made great strides in terms of gender equality, with the Gender Inequality Index (GII) decreasing from 0.541 in 2010 to 0.417 in 2018. Overall, Bhutan has made great progress in terms of economic development and human development, and is well on its way to becoming a prosperous nation.

Taxation



Taxation in Bhutan is governed by the Income Tax Act of Bhutan, which was first introduced in 2001 and has been updated several times since then. The tax system in Bhutan is administered by the Department of Revenue and Customs under the Ministry of Finance.


Personal income tax is levied on all individuals who are Bhutanese citizens or residents of Bhutan. The tax rates are progressive, ranging from 0% to 25%, depending on the income level. The first BTN 200,000 of annual income is exempt from taxation, and there are various deductions and credits available to reduce the tax liability. Non-residents of Bhutan are subject to a flat tax rate of 30% on income earned in Bhutan.


Corporate income tax is levied on all companies and businesses operating in Bhutan. The standard corporate tax rate is 30% on the net taxable income. However, certain businesses such as hydropower companies, hotels, and IT companies may be eligible for tax holidays or reduced tax rates under certain circumstances.


The tax year in Bhutan runs from January 1st to December 31st. The deadline for filing personal income tax returns is March 31st of the following year, while the deadline for filing corporate tax returns is May 31st. Taxpayers are required to make advance tax payments on a quarterly basis, with the due dates falling on June 30th, September 30th, December 31st, and March 31st.


Payments can be made online or in person at designated banks. The penalty for late payment or non-payment of taxes can range from 10% to 25% of the tax due, depending on the length of the delay. Additionally, interest may be charged on any outstanding tax liability. 


Overall, taxation in Bhutan is relatively straightforward, and the government has taken steps in recent years to simplify the tax system and make it more user-friendly for taxpayers.

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