The renewal of the registration certificate is subject to tax clearance certificate issued by the DRC
The economic affairs ministry has come up with an online Cottage Scale Industries Registration (CSIR) for those intending to venture into any cottage scale industries with investment less than Nu 1mn and having a three years validity for the registration certificate.
With this reform, an applicant for cottage scale industries will need to simply apply online and obtain a registration certificate printed from a website to system without having to visit the office in person.
Economic Affairs Minister Loknath Sharma launched the “Guidelines for the Registration of Cottage Scale Industries 2021” along with the online Cottage Scale Industries Registration System through the G2B application services on May 14.
The certificate holder would be exempted from registration and renewal fees for three years, however, he/she would have to pay file annual taxes or any levies.
Moreover, upon obtaining the registration certificate, the applicant have to register with the Department of Revenue and Customs (DRC), finance ministry for taxation purpose.
Additionally, the renewal of the registration certificate is subject to tax clearance certificate issued by the DRC.
“The intent of the reform is to make the process of starting cottage scale industries much easier and simpler,” states the press release from the economic affairs ministry.
The reform has been initiated to follow the principle of ‘allow first and regulate later’ approach to facilitate ease of starting cottage scale industries and do away with the unnecessary regulatory related burdens, according to economic affairs ministry.
The registration system would reduce the burden of compliance by eliminating unnecessary approvals and submission of documents prior to establishment of a business, it adds.
“It is anticipated that this reform would encourage more aspiring entrepreneurs to venture into cottage scale industries, which would enhance economic diversification, create employment opportunities, enhance value addition to the locally available resources and contribute to overall-socio-economic development of the country, “states the ministry.
However, registration certificate would not be provided to entertainment activities namely drayangs, discotheque, karaoke, snooker, video game parlor, live music, cinema hall, bowling alleys, and for tour operators or travel agents, bar, contract, mining and quarry, stone crushing unit, hotels, sawmills or integrated wood-based industries.
In the same event, “CSI Technology Request Database” was also launched. The online technology request platform will facilitate entrepreneurs to search and adopt right and appropriate technology required for operating their business and thus, lead to increased productivity and growth, states the economic affairs ministry.
The online database platform would also serve as a means to exchange technology (both offers and technology requests) within and outside Bhutan. The online search engine is connected to select international data base centers, which provide access to various technology suppliers.
Thukten Zangpo from Thimphu
