An energy or infrastructure project in the Gelephu Mindfulness City touches almost every part of the new statute book at once: a site lease through the Economic Development Group, a tax incentive that must be approved before 31 December 2030, security for lenders, customs treatment for imported equipment, and a regulator that treats carbon credits as financial instruments. Basnet Law Pte. Ltd. is the first incorporated law firm in GMC. We advise developers, operators, lenders and technology providers on projects in Green Energy and Technologies, one of GMC's eight official priority industries, and on the infrastructure that the city itself is building. This page explains how those pieces fit together and how we run a project through them.
How we help
- Project structuring through GMC companies, LLPs or limited partnerships, with the resident-director and head-office requirements of the Companies Act 2025 handled.
- Site acquisition through the Economic Development Group's land identification and long-term lease arrangements.
- Incentive applications: the founders company exemption for a founders industry and the strategic and development company concessionary rate of not less than 5% under the Income Tax Act 2025, both closed to new approvals after 31 December 2030.
- Capital allowances on plant and machinery at 33⅓% a year and approved foreign loans for productive equipment.
- Project finance: security over project assets and floating charges registered within 30 days under the Companies Act 2025, and withholding on interest paid to foreign lenders.
- Carbon and renewable energy certificates as Environmental Instruments under the Financial Services Act 2025.
- EPC, O&M and supply contracts under GMC law, including a principal's liability for contractors' workmen under the Employment Act 2025.
How GMC energy and infrastructure law works, in plain terms
The Royal Charter No. 1 of 2024 gives the GMC Authority powers that include fiscal, customs and tariff benefits, licences and funds, and the Gelephu Mindfulness City Authority lists Green Energy and Technologies among the eight priority industries. The Authority describes EDG as a one-stop shop for land identification, lease guidance, incorporation and regulatory clearances, with flexible long-term leases. These are the entry points for an energy or infrastructure project.
The Income Tax Act 2025 carries the incentives. The designated officer may approve as a founders industry an industry "not being carried on in GMC on a scale adequate to the economic needs of GMC" that has favourable prospects, and an approved founders company is then exempt on income from that qualifying business for a total period of up to 15 years. Alternatively, a strategic and development company may obtain a concessionary rate of not less than 5%. Neither approval may be granted after 31 December 2030. Capital expenditure on machinery or plant attracts an annual allowance of 33⅓%, and interest on an approved foreign loan for productive equipment can be exempted or taxed at a concessionary rate.
Environmental attributes are regulated investments. Under the Financial Services Act 2025, an Environmental Instrument is a Financial Instrument recognised by the Regulator that enables emissions under a trading scheme, "attests to the reduction or removal of greenhouse gases", or attests to the environmental attributes of an underlying unit, such as renewable energy certificates. Dealing in or arranging such instruments by way of business is a Regulated Activity, subject to exclusions such as those for groups and joint enterprises.
Customs treatment matters for imported equipment. Under the Customs Act 2025 the designated officer prescribes duty rates by Gazette order and may exempt classes of goods or persons by order or by individual direction, and every declaration must give a full and true account. Rates and exemptions are set by order; we confirm them for each project.
Who this is for
- Renewable energy developers and independent power producers.
- Data centre and digital infrastructure operators seeking green power.
- Lenders and investors financing GMC projects.
- Equipment suppliers and EPC contractors.
How an engagement runs
- Feasibility. Priority-industry fit, entity choice and eligibility for the founders company exemption or the strategic and development company rate.
- Site and approvals. EDG engagement, lease terms and regulatory clearances until the site is secured.
- Incentive filings. Written applications to the designated officer with the prescribed particulars, followed through to the letter of approval.
- Contracts and finance. EPC, O&M, offtake and financing documents, with the security filings made in time.
- Operations. Customs declarations, withholding on lender interest and any Environmental Instrument licensing once the project is running.
Frequently asked questions
Is green energy a priority sector in GMC?
Yes. Green Energy and Technologies is one of the eight priority industries listed by the Gelephu Mindfulness City Authority, alongside Finance and Digital Assets and Aviation and Logistics. We use that positioning in your incentive and lease applications.
Can an energy project get a tax holiday?
An approved founders company is exempt on income from its qualifying business in a founders industry, for up to 15 years including extensions. No approval can be given after 31 December 2030, so we start the application early.
Are carbon credits regulated in GMC?
Carbon credits and renewable energy attribute certificates recognised by the Regulator are Environmental Instruments and therefore specified investments. Trading or arranging them by way of business may require a licence, and we tell you whether your model does.
How is imported equipment treated for customs?
The Customs Act 2025 allows the designated officer to prescribe rates and grant exemptions by Gazette order or direction. We confirm the current position for the specific goods before they ship.
What withholding applies to project loan interest?
15% on interest paid to a person not known to be resident in GMC, unless the loan is an approved foreign loan or a double taxation arrangement applies. We check both routes before the facility is signed.
Talk to GMC counsel on the ground
Basnet Law Pte. Ltd. is the first law firm incorporated in the Gelephu Mindfulness City. A short conversation early in a matter usually saves time and cost later. Write to basnet@basnetgmc.com or office@basnetgmc.com with a few lines about your plans, and we will tell you plainly what is needed, how long it takes, and whether we are the right fit.
You may contact Basnet Law at basnet@basnetgmc.com or office@basnetgmc.com for any legal queries related to GMC.
