Bhutan

Ease of Doing Business in

Bhutan

This page shows summary Doing Business 2012 data for Bhutan. The first table lists the overall "Ease of Doing Business" rank (out of 183 economies) and the rankings by each topic. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

Region South Asia
Income Category Lower middle income
Population 708,484
GNI Per Capita (US$) 1,920.00
Doing Business 2012 Rank Doing Business 2011 Rank Change in Rank
142 146 down 4
Topic Rankings DB 2012 Rank DB 2011 Rank Change in Rank
Starting a Business 83 84 up 1
Dealing with Construction Permits 135 128 up -7
Getting Electricity 145 142 up -3
Registering Property 83 83 No change
Getting Credit 126 170 up 44
Protecting Investors 147 145 up -2
Paying Taxes 67 65 up -2
Trading Across Borders 169 168 up -1
Enforcing Contracts 35 35 No change
Resolving Insolvency 183 183 No change

Economy Profile

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Starting a Business

Info

The challenges of launching a business are shown below. Included are: the number of steps entrepreneurs can expect to go through to launch, the time it takes on average, and the cost and minimum capital required as a percentage of gross national income (GNI) per capita.

DB 2012 Rank 83 DB 2011 Rank 84 Change in Rank up1
Indicator Bhutan South Asia OECD

The total number of procedures required to register a firm. A procedure is defined as any interaction of the company founders with external parties (for example, government agencies, lawyers, auditors or notaries).

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Procedures (number)
8 7 5

The total number of days required to register a firm. The measure captures the median duration that incorporation lawyers indicate is necessary to complete a procedure with minimum follow-up with government agencies and no extra payments.

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Time (days)
36 23 12

Cost is recorded as a percentage of the economy’s income per capita. It includes all official fees and fees for legal or professional services if such services are required by law.

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Cost (% of income per capita)
7.2 21.6 4.7

The amount that the entrepreneur needs to deposit in a bank or with a notary before registration and up to 3 months following incorporation and is recorded as a percentage of the economy’s income per capita.

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Paid-in Min. Capital (% of income per capita)
0.0 19.1 14.1
No. Procedure Time to Complete Associated Costs
1 Obtain a security clearance from the Royal Bhutan Police 1 week no charge
2 The company submits project proposal to Industrial Development Services Division (IDSD), Project Development Services Division 4 days for activities requiring no sector / environmental clearance; up to 6 months for activities requiring sector clearance BTN 600
3 Register with the Registrar of Companies 3 days BTN 2000
4 Apply for a trade/industrial license at the Regional Trade and Industrial Office (under Ministry of Economic Affairs) 2 days Registration fee, license fee, booklet charge (see comment)
5 Apply for taxpayer identification number and register the company for specific taxes 1 - 3 days no charge
6 Make a company seal 1 day BTN 879
* 7 Open a bank account 1 day (simultaneously with previous procedure) no charge
* 8 File the evidence of operating a bank account with the Registrar of Companies 1 day (simultaneously with previous procedure) no charge
* Takes place simultaneously with another procedure.

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