Bhutan’s business landscape continues to be driven overwhelmingly by sole proprietorships, according to the latest data from the Department of Trade and the Department of Industry.
Business ownership trends also tend to diverge within different sectors. In the trade sector, a total of 23,660 active licenses are recorded. Of these, ‘sole proprietorships’ account for 22,839, making up 96.5% of all active trade licenses, while ‘partnerships’ represent 239 businesses, or 1.01%. There are 532 ‘companies’, or 2.24%, and ‘others’ comprise just 50 licenses, at 0.21%.
In the industry sector, as of 30 June 2025, there are 30,512 active licenses. Of them, sole proprietorships dominate again with 28,999, or 95% of total industries, while partnerships make up 399, or 1%. Companies stand at 978, or 3%, and others account for 136, or 1%.
Separately, the Corporate Regulatory Authority (CRA) reports that 692 companies are formally registered under its jurisdiction.
“These numbers reaffirm that Bhutan’s economy is still largely built on small, individual entrepreneurs,” a senior official from the Department of Trade said. “Sole proprietorships are the backbone of local commerce, but at the same time, there is significant room to encourage partnerships and corporate entities to bring in innovation and investment.”
Analysts note that while corporate and partnership models remain small in number, their role is expanding in emerging sectors such as ICT, services, and green industries.
At the same time, the government has completed the Preliminary National Interest Analysis (PNIA) for the renewal of the existing trade agreement with India. The report has been submitted to the Cabinet for endorsement.
“On the sidelines, the trade agreement with India is central to Bhutan’s economic stability and growth,” said an official from the Ministry of Industry, Commerce and Employment (MoICE). “The renewal process will ensure continued market access, tariff benefits, and expanded opportunities for Bhutanese businesses.”
The agreement underpins the majority of Bhutan’s external trade, covering both exports and imports, and is seen as critical in supporting Bhutan’s economic diversification efforts.
With sole proprietorships continuing to dominate both trade and industry, policymakers may face pressure to encourage more diverse ownership models such as partnerships and corporate firms. This shift, experts argue, would help Bhutan attract larger investments, scale up innovation, and create more employment opportunities.
“The time is right to complement the strong foundation of sole proprietorships with more structured and collaborative business models,” said an economist familiar with Bhutan’s private sector development. “It will strengthen resilience and make Bhutanese businesses more competitive in regional and global markets.”
Tashi Namgyal
From Thimphu
