Manufacturing is a priority sector in Bhutan's drive toward becoming a high-income economy by 2034. Reliable hydropower, competitive incentives and a significantly improved investment regime have made industrial production a focus for both foreign and domestic capital. The FDI Rules & Regulations 2025 treat priority production and manufacturing activities favourably, allowing up to 100 percent foreign equity in defined activities and permitting the lease of state land, including land within industrial parks, for an initial term of 30 years, with minimum investment thresholds applied by activity. Fiscal incentives, environmental clearances, factory licensing and labour compliance all form part of the operating framework.

 

Basnet Attorneys & Law advises on foreign direct investment registration and company formation, industrial land lease arrangements, licensing and incentive applications, supply, offtake and equipment contracts, and labour law compliance. We coordinate the corporate, real estate and regulatory workstreams that a manufacturing project requires, supported by ongoing company law compliance, so that production can begin on schedule and continue on a sound footing.