The first thing a brand or technology owner needs to know about the Gelephu Mindfulness City is how intellectual property is protected there. Basnet Law Pte. Ltd., the first incorporated law firm in GMC, gives international clients a clear account of the position: protection rests on the Application of Laws Act 2024, the received common law and equity, and contract, while the Income Tax Act 2025 contains IP-specific tax provisions. This page explains what that means in practice and how we protect IP in GMC.
How we help
- Advising on which law governs a given IP question in GMC under the Application of Laws Act 2024.
- Protecting brands through company and business name registration, where the Registrar must refuse identical or undesirable names and may direct a change where a name so nearly resembles another as to be mistaken for it.
- Drafting licensing, assignment, confidentiality and technology transfer agreements under GMC law.
- Tax structuring for IP-holding companies under the Income Tax Act 2025: writing-down allowances for acquired IP rights over 5, 10 or 15 years, R&D deductions and innovation cost-sharing deductions.
- Withholding on royalties and know-how payments deemed derived from GMC, and applications for approved royalties.
- Taking and registering security over patents, trade marks, copyright and registered designs under the Companies Act 2025.
How GMC intellectual property law works, in plain terms
Intellectual property in GMC is governed through the Application of Laws Act 2024. The governing rule is the Act's residual provision: for matters not covered by GMC enactments or the Schedules, the GMC Authority determines the position; Bhutan law applies as the general default, and the applied general law is presumptive for civil and commercial matters. The received common law and equity also apply so far as suited to GMC, which brings in common law protections such as passing off and breach of confidence, and GMC can rely on common law precedents from any common law jurisdiction.
Contracts are a central tool. Licences, assignments and confidentiality agreements governed by GMC law are enforceable on ordinary principles, and the Unfair Contract Terms Act 2026 exempts contracts relating to the creation, transfer or termination of intellectual property rights from its controls through its First Schedule, so parties can allocate IP risk freely.
The tax code is IP-ready. A company that incurs capital expenditure acquiring IP rights for its trade must be given writing-down allowances over a period of 5, 10 or 15 years as it elects, with an irrevocable election made when the return is lodged. Royalties and payments for the use of scientific, technical, industrial or commercial knowledge are deemed derived from GMC where they are borne by a GMC resident or permanent establishment, and the Act's withholding mechanism applies to such payments to non-residents. The designated officer may approve royalties for exemption or a concessionary rate.
Company law offers practical brand protection. A registered company name cannot be identical to that of another company, LLP, LP or registered business name, and the Registrar may direct a change where use of a name has been restrained by an injunction under trade mark laws. Business name registration itself confers no property right in the name under the Business Names Registration Act 2026.
Who this is for
- Technology, media and brand owners entering GMC.
- Groups considering a GMC IP-holding or licensing company.
- Founders in the priority industries with know-how to protect.
- Lenders taking security over the IP assets of a GMC company.
How an engagement runs
- Position paper. A written statement of the law that applies to your IP under the Application of Laws Act 2024.
- Contract layer. Licences, assignments and NDAs governed by GMC law.
- Name protection. Company and business name registration and reservation.
- Tax structuring. Writing-down allowance elections, R&D claims and withholding design.
- Monitoring. Tracking GMC enactments and amendments to Schedule A, so you are told when the position changes.
Frequently asked questions
How are trade marks and patents protected in GMC?
Under the Application of Laws Act 2024, Bhutan law is the general default for matters not covered, with the applied general law presumptive in civil and commercial matters, and the received common law protects brands through passing off and breach of confidence. We advise on the practical route for each right.
How is acquired IP taxed?
Capital expenditure on acquiring IP rights attracts writing-down allowances under the Income Tax Act 2025 over 5, 10 or 15 years at the company's irrevocable election. We make the election with the return.
Do I withhold tax on royalties paid abroad?
Yes. Royalties and know-how payments deemed derived from GMC are subject to the Act's deduction mechanism, unless an approval from the designated officer or a double tax arrangement applies. We check both before the first payment goes out.
Can an IP licence exclude all liability?
Contracts relating to IP rights are exempt from the Unfair Contract Terms Act 2026 by its First Schedule, so exclusion terms are governed by general contract law.
Does registering a business name protect my brand?
No. Registration confers no property right in the name under the Business Names Registration Act 2026, although the Registrar must refuse identical names under the Companies Act 2025.
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.
