Retail and consumer goods in Bhutan are moving from traditional trade toward organised distribution, franchising and e-commerce. Foreign brands evaluating the market need clarity on ownership limits, distribution structure and the contractual terms that govern their local partners before they commit capital. Foreign participation in retail, distribution and consumer goods is governed by the FDI Rules & Regulations 2025, and is not allowed for foreigners. Most of the distribution businesses are done through dealership and franchise business model. Consumer protection, product labelling, customs and tax rules apply to the goods themselves, while franchising and distribution arrangements turn on well drafted commercial contracts and properly protected intellectual property.


Basnet Attorneys & Law advises on foreign direct investment eligibility and registration, business formation and licensing, distribution, agency and franchise agreements, supply and logistics contracts, brand and trademark protection, and consumer compliance. We help both foreign and domestic clients build distribution networks that are commercially sound and legally enforceable.