Bhutan improves business environment

New Delhi, September 27: Business environment in Bhutan has improved over the past one year, a newly released report of the World Bank entitled 'Doing Business 2008' states. Among 178 countries, Bhutan ranks 119.

According to the report, Bhutan made it easier for entrepreneurs to start limited liability trading companies by eliminating two procedures–name approval and location clearance–and increasing efficiency at the Registrar of Companies. The time to start operating a business in Thimphu dropped from 62 to 48 days.

In addition, the National Assembly endorsed the Land Bill of Bhutan 2007 on June 27. Among other provisions that affect everything from surveys to government rights to land in the name of public interest, the Act states that a National Land Commission will be established and become the highest decision-making authority on land matters in Bhutan.

The establishment of the Commission will eventually take land transactions out of the courts, thereby freeing up judges' time to deal with judicial matters, and speeding up both the process to transfer land and the time to solve civil disputes.

Bhutan implemented its first labor law which prohibits forced labor, discrimination, sexual harassment and the worst forms of child labor. The law removes the 12-month limit on fixed-term contracts, eases restrictions on night work and does away with mandatory pay premiums for daytime overtime. However, the new law also requires an employer to notify a third-party before dismissing a redundant worker and institutes a 72-day notice period.

The National Assembly decided in December 2006 to increase the number of judges in District courts from 3 to 5, aiming to finalize hearings and solve cases within 1 month of parties filing. The time needed to transfer property, which takes place largely in the courts, has decreased by 30 days.

Indicators of Doing Business

Bhutan News Service