Bhutan's tourism model has long been managed and high-value rather than high-volume, and the Gelephu Mindfulness City does not change the national brand. Tourism is one of GMC's eight priority industries, a Tourism Spark Fund has been launched with a set of investment opportunities, and the near-term plays are hospitality, experience operators and the cross-sell with the Health and Wellness and Spiritual pillars. Basnet Law Pte. Ltd., the first law firm incorporated in the Gelephu Mindfulness City, advises hotel groups, experience operators and their investors under the Companies Act 2025, the Income Tax Act 2025, the Employment of Foreign Workforce Act 2025 and the Customs Act 2025. This page explains what the framework provides and how we take a project through it.
How we help
- Framing the expression of interest to the Tourism pillar, the first gate at which the Authority assesses the business case.
- Incorporating the operating company through the Gelephu Corporate Registration Office with an empanelled corporate service provider and a resident director.
- Securing hotel, resort and experience sites through the Economic Development Group's long-term lease arrangements.
- Work passes for foreign hospitality managers and staff, and employment contracts under the Employment Act 2025.
- Founders company applications where the activity is not yet carried on in GMC at adequate scale, before the 31 December 2030 cut-off.
- Duty-free retail and imported fit-out under the Customs Act 2025.
- Guest, supplier and management contracts under the Sale of Goods Act 2026 and the Unfair Contract Terms Act 2026.
What the GMC framework provides for tourism
GMC lists Tourism among its eight priority industries, and the registry applies that list as a screen on every expression of interest. The Royal Charter's objectives pair foreign investment, talent and employment with well-being and mindful living, which is the register a hospitality proposal should be written in. A guest travelling beyond GMC into the rest of Bhutan is subject to Bhutan's own immigration, tariff and tourism rules, a separate system from the GMC regime.
Establishment runs on the Companies Act 2025. A private company limited by shares is the usual vehicle; an empanelled corporate service provider has been mandatory since 1 November 2025, and every company needs a registered office in GMC and a director ordinarily resident there, a test satisfied by a valid work visa or work pass. Sites come through the Economic Development Group, whose published offer is land identification, lease guidance and flexible long-term leases, so the lease sets term, use, milestones and termination, and its exclusions are enforced as written because leases are exempt from the Unfair Contract Terms Act 2026.
People follow the general rules. Under the Employment of Foreign Workforce Act 2025 no foreign employee may work without a valid work pass, valid only for the named employer and occupation, and the employer must keep a register of foreign employees. Pass categories, quotas and any levy sit in regulations and Gazette orders. The Employment Act 2025 sets a statutory floor for hospitality contracts, provides for a national minimum wage, and requires tax clearance before any termination payment.
Goods touch the Customs Act 2025. Duty-free shops for tourists are provided for under the Act, imported fit-out and supplies enter at rates prescribed by Gazette order with exemptions by order or individual direction, and every declaration must give a full and true account. Bhutan's sales tax and customs laws also apply through Schedule C to the Application of Laws Act 2024.
Tax follows the ordinary rules. The Income Tax Act 2025 charges companies at 15% on chargeable income. An approved founders company in an approved founders industry, one not carried on in GMC at a scale adequate to its economic needs and with favourable prospects, is exempt on that qualifying business for up to 15 years including extensions; the designated officer decides and no approval may be given after 31 December 2030. Non-citizen individuals pay 0% on chargeable income derived on or before 31 December 2030. Running a hotel or an experience business is not a regulated activity under the Financial Services Act 2025.
Who this is for
- Hotel and resort groups planning a Gelephu property.
- Experience, adventure and cultural tour operators.
- Wellness and retreat operators selling across the Tourism, Health and Wellness and Spiritual pillars.
- Investors responding to the Tourism Spark Fund opportunities.
- Foreign hospitality professionals relocating to GMC.
How an engagement runs
- Positioning. We define the offer, name the pillar and draft the expression of interest around the capacity it adds to GMC and the employment it creates.
- Entity and registration. We incorporate through the GCRO portal with an empanelled corporate service provider and settle the resident director.
- Site. We open the Economic Development Group engagement and negotiate the lease for the property.
- People and supply. We prepare work pass applications and employment contracts, and confirm the customs position for fit-out and duty-free retail before goods ship.
- Tax. We assess the founders industry case, lodge the application before the 2030 cut-off where it is realistic and set the compliance calendar.
Frequently asked questions
What law governs a tourism operator in GMC?
An operator is established under the Companies Act 2025, leases its site through the Economic Development Group and is taxed under the Income Tax Act 2025. Bhutan's own tourism rules apply outside GMC.
Can a hotel qualify for the founders company exemption?
Yes, on application. The company rate is 15%; exemption requires approval of the industry as a founders industry and of the company as a founders company, and no approval may be given after 31 December 2030. Hospitality capacity is the kind of activity the founders industry test is written for.
Do foreign hospitality staff need work passes?
Yes. No foreign employee may be employed in GMC without a valid work pass, tied to the named employer and occupation. Categories, quotas and any levy sit in regulations.
What is the Tourism Spark Fund?
A fund launched by GMC with a set of investment opportunities in the Tourism pillar. Its terms are set by the fund rather than by statute, and we confirm them at the time of application.
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.
