Nobody works in the Gelephu Mindfulness City without a work pass, and the duty to get that right sits with the employer as much as with the employee. Basnet Law Pte. Ltd. is the first incorporated law firm in the Gelephu Mindfulness City (GMC). We advise employers, founders and individuals on work passes and residency under the Employment of Foreign Workforce Act 2025 and the Immigration Act 1959 as it applies in GMC. This page explains how the rules work and how we take an employer or an individual through them.
How we help
- Advising employers on the rule that a foreign employee may not be employed without a valid work pass, and on the due-diligence defence that protects an employer who checked.
- Preparing work pass applications, including in-principle approval, and answering the Controller's requests for information.
- Advising self-employed foreigners, who must also hold a valid work pass.
- Setting up the register of foreign employees that every employer must keep.
- Managing suspension and revocation events, including the duty to terminate within 7 days.
- Advising on the levy regime and on who holds custody of the pass.
- Structuring the "ordinarily resident" director that the Companies Act 2025 requires.
How GMC immigration law works, in plain terms
GMC immigration law has two layers. The Immigration Act 1959 applies in GMC, with modifications, because it is one of the applied statutes listed in Schedule A to the Application of Laws Act 2024. GMC's own Employment of Foreign Workforce Act 2025, treated as having come into operation on 26 December 2024, governs who may work in GMC.
The core rule is simple: "A person must not employ a foreign employee unless the foreign employee has a valid work pass." The employee is separately prohibited from working without one, and the work must follow the conditions of the pass. Where a foreigner is found at any premises, the occupier is presumed to have employed that person until the contrary is proved, and an occupier must not let a foreigner without a valid pass enter or remain at a workplace.
Applications go to the Controller of Work Passes, who may issue a pass with or without conditions and must be satisfied that the applicant is not a prohibited immigrant under the Act's Second Schedule. In-principle approval may be granted first. Pass categories and fees are left to regulations; the Act itself sets no quotas, levy rates or fees.
The tax overlay matters too. Under the Income Tax Act 2025, an individual who is not a citizen of Bhutan, whether resident in GMC or not, is taxed at 0% on chargeable income derived on or before 31 December 2030.
Who this is for
- International companies relocating staff to a GMC entity or licensed firm.
- Founders who need a work pass to serve as resident director of a GMC company.
- Self-employed professionals planning to work from Gelephu.
- HR teams building compliant onboarding and termination procedures.
How an engagement runs
- Scoping call. We identify the role, the sponsoring entity and any resident-director need.
- Eligibility review. We check the Second Schedule grounds and the Controller's likely requirements before anything is filed.
- Application. We prepare the application, seek in-principle approval where useful and manage the conditions attached to the pass.
- Compliance set-up. The register of foreign employees, pass custody procedures and levy controls, so the employer is ready for an inspection.
- Ongoing support. Renewals, variations of conditions and cancellations as staff join and leave.
Frequently asked questions
Does every foreign national need a work pass to work in GMC?
Yes. The Act prohibits employing a foreign employee without a valid work pass, and it extends the requirement to self-employed foreigners. The categories of pass are prescribed by the designated officer, and we confirm which one fits the role.
What are the penalties for an employer who gets it wrong?
A first conviction for employing a foreigner without a valid pass carries a fine of at least $5,000 and up to $30,000, imprisonment of up to 12 months, or both. "$" means United States dollars. Not knowing the person was a foreigner is no defence unless the employer checked the passport, which is why we build that check into onboarding.
Can a work pass holder be the resident director of my GMC company?
Yes. Under the Companies Act 2025 a director is "ordinarily resident in the GMC if he is a resident in the GMC or has a valid work visa or work pass".
What happens if the Controller revokes an employee's pass?
The employer must terminate the employment within 7 days of receiving notice or face a financial penalty of up to $10,000. The termination cannot be the subject of industrial action or a trade dispute. We handle the notice and the paperwork inside the window.
Are there quotas or levy rates in the Act?
No. The levy is imposed by Gazette order of the designated officer, and pass categories and fees are set by regulations. We confirm the current figures before advising.
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.
