Bhutan

Dealing with Construction Permits in

Bhutan

Listed below is detailed summary of the procedures, time and costs to build a warehouse —including obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections. 

The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.

  • Building a warehouse

  • Estimated Warehouse Value: BTN 11,200,000
  • City: Thimphu

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No. Procedure Time to Complete Associated Costs
1 Request and obtain official site plan

After a fee is paid, the official site plan is obtained from the survey section of the City Corporation.

Agency: Thimphu City Corporation
5 days BTN 100
2 Purchase building construction application form

BuildCo must purchase the building construction application form from the revenue section of the City Corporation.

Fee schedule for building construction application:
- Application form: BTN 100
- Legal service fee (if required): BTN 500.

Agency: Thimphu City Corporation
1 day BTN 600
3 Submit form to architectural section

During stage 1 of the approval, the company must submit a duly completed form to the architectural section of the City Corporation, along with the drawing(s), the ownership certificate, and an official site plan. During stage 2 the architectural section will undergo a planning check with the structural, electrical, sewerage, and water supply sections. Although this is an internal process carried out by the municipality, not the company, BuildCo must follow up to ensure progress. During stage 3, the architectural section submits the proposal to the Chief (Thrompon) of City Corporation with recommendations and findings for final approval. As with stage 2, BuildCo must check progress on this internal municipal process.

Agency: Thimphu City Corporation (Architecture Section)
90 days no charge
4 Obtain building permit and request pre-construction inspection from City Corporation

BuildCo must collect its building permit or request to receive it by post. A preconstruction site inspection must be requested in writing.

Fee schedule for preconstruction inspection

- Amenities fee:
-- Residential and institutional building: BTN 30 per sq. m.
-- Commercial and industrial building: BTN 50 per sq. m..
- Scrutiny fee: BTN 3,000 or BTN 16.14 per sq. m. (the greater of).

On starting construction, the company notifies the City Corporation in writing.

Agency: Thimphu City Corporation
1 day BTN 86,022
5 Receive pre-construction inspection

On BuildCo’s request to the City Corporation’s building section, the building inspector conducts a site inspection. Thereafter, routine inspections occur every 3 weeks. If the work is not conducted according to plan, the City Corporation issues a notice to rectify the process. If the company does not comply with the first notice, the utility company disconnects service. If the company does not comply with the third notice, the structure will be demolished (before a building inspector, engineer, architect, surveyor, and police personnel).

Agency: Thimphu City Corporation (Building Section)
1 day no charge
* 6 Request water connection and inspection

To obtain a water connection, BuildCo must submit an application to the building section of the City Corporation and pay a connection fee of BTN 3,200 for a 3/2'' pipe to the Revenue Section of the water company. All connections must be pre-verifed to check whether they comply with water and sanitation rules.

Agency: Thimphu City Corporation
1 day BTN 3,200
* 7 Receive inspection of water connections

All connections must be pre-verified to check whether they comply with water and sanitation rules. The wait time is about 7–9 days.

Agency: Thimphu City Corporation (Building Section)
1 day no charge
* 8 Connect to water services



Agency: Thimphu City Corporation
10 days no charge
9 Receive excavation work inspection

Excavation work is inspected about 3 weeks after the previous inspection. Thus, Buildco does not have to request an inspection. Moreover, BuildCo does not need to stop work during inspection. However, it must provide the inspector with transportation to the site.

Agency: Thimphu City Corporation
1 day no charge
10 Receive foundation work inspection

Foundation work is inspected about 3 weeks after the previous inspection. Thus, BuildCo does not have to request an inspection. Moreover, BuildCo does not need to stop work during the inspection. However, it must provide the inspector with transportation to the site.

Agency: Thimphu City Corporation
1 day no charge
11 Receive concrete work inspection

Concrete work is inspected about 3 weeks after the previous inspection. Thus, BuildCo does not have to request an inspection. Moreover, BuildCo does not need to stop work during the inspection. However, it must provide the inspector with transportation to the site.

Agency: Thimphu City Corporation
1 day no charge
12 Receive drainage inspection

Drainage work is inspected about 3 weeks after the previous inspection. Thus, BuildCo does not have to request an inspection. Moreover, BuildCo Company does not need to stop work during the inspection. However, it must provide the inspector with transportation to the site.

Agency: Thimphu City Corporation
1 day no charge
13 Receive timber scaffolding inspection

Timber scaffolding is inspected about 3 weeks after the previous inspection. Thus, BuildCo does not have to request an inspection. Moreover, BuildCo does not need to stop work during the inspection. However, it must provide the inspector with transportation to the site.

Agency: Thimphu City Corporation
1 day no charge
14 Receive sanitary inspection

Sanitary conditions are inspected about 3 weeks after the previous inspection.

Agency: Thimphu City Corporation
1 day no charge
15 Receive fire inspection

Fire conditions are inspected about 3 weeks after the previous inspection. Thus, BuildCo does not have to request an inspection. Moreover, BuildCo does not need to stop work during the inspection. However, it must provide the inspector with transportation to the site.

Agency: Thimphu City Corporation
1 day no charge
16 Receive structure inspection



Agency: Thimphu City Corporation
1 day no charge
17 Receive inspection of the building surroundings



Agency: Thimphu City Corporation
1 day no charge
18 Connect to sewage services

To obtain sewage services, BuildCo submits an application to the sewerage section of the City Corporation with a copy of the plan and a connection fee of BTN 3,000. The connection is made in about 2 weeks.

Agency: Thimphu City Corporation (Sewerage Section)
15 days BTN 3,000
* 19 Connect to phone services

To obtain a phone line, BuildCo submits the application form duly filled and signed. A feasibility study is conducted by the service section of Bhutan Telecom. If feasible, BuildCo pays connection charges.

Agency: Bhutan Telecom Limited
2 days BTN 600
20 Notify building controller of building completion

A written confirmation, stating that construction is completed, is issued to the building controller.

Agency: Thimphu City Corporation (Building Section)
1 day no charge
21 Receive final inspection and obtain occupancy certificate

When the construction (including utilities connections) is completed, BuildCo must notify the City Corporation. Subsequently, the site will be inspected by a team (architect, engineer, surveyor, the Corporation’s building inspector, and representatives of electrical, plumbing, and sanitation agencies). The environmental commission and the telephone company are also informed and asked to join the team, if necessary. If the team deems the construction completed to agreed standard and plans, it recommends the issuance of an occupancy certificate. Otherwise, they ask BuildCo to remedy the deficiencies.

Agency: Thimphu City Corporation, Environmental Commission, and Bhutan Telecom Limited
1 day BTN 6,000
22 Obtain occupancy permit



Agency: Thimphu City Corporation
44 days no charge
* Takes place simultaneously with another procedure.