Since April 2020, an Indian company receiving investment from an entity or beneficial owner in a country that shares a land border with India, including Bhutan, needs prior Government of India approval, whatever the sector. Once approval is granted, the company is incorporated as a private limited company with at least two directors, one resident in India, and the investment is reported to the RBI.
- Document route
- Bhutanese certification, Ministry of Foreign Affairs attestation, then Indian Embassy attestation
- Time difference
- IST is 30 minutes behind Bhutan all year
- Law
- Companies Act 2013, FEMA 1999, NDI Rules 2019
- Minimum
- 2 directors, 2 shareholders
Company Setup for Foreigners from Bhutan: how it works
We start with the business plan and the ownership structure, because the approval application must disclose the beneficial owners. We prepare and file the application on the government's foreign investment portal and respond to queries from the ministries.
Once approval is received, we handle incorporation, the PAN and TAN, the bank account, receipt of capital, the FC-GPR filing within 30 days of allotment, GST registration and the compliance calendar. Bhutanese directors' documents are attested in Bhutan and translated where needed.
What clients in Bhutan should know
- Approval timelines vary; plan for several months.
- Even small investments from Bhutanese owners need approval.
- At least one director must be resident in India for 182 days in the previous year.
Step by step from Bhutan
Video consultation
A call at a time that suits Bhutan, after we have read your documents.
Documents signed in Bhutan
Bhutanese certification, Ministry of Foreign Affairs attestation, then Indian Embassy attestation
Work in India
Our team files, appears and follows up in India, and shares scans of everything filed.
Result and handover
Certified copies and originals are couriered to you in Bhutan where needed.
The full guide
This page covers what changes when you are in Bhutan. For the law, the documents and the step-by-step procedure, read our main page on Company Setup for Foreigners, or see all services for clients in Bhutan and the Doing Business in India practice area.
Questions from clients in Bhutan
Is approval needed even for a small trading company?
Yes. The rule applies to all investment from a land-border country, regardless of size or sector.
Can an Indian citizen in Bhutan invest without approval?
An Indian citizen investing in their own name is not a land-border investor. We check the facts.
How long does approval take?
Usually several months, depending on the sector and the queries raised.