According to Section 6 of the Guidelines for Licensing of Over-the-Top (OTT) Services, individuals or entities with a valid start-up licence may establish and operate an OTT platform for up to five years. Before the end of this period, OTT providers must apply to the Authority for an ICT service licence, valid for 5 years and subject to agreed terms and conditions. Licensed telecom and internet service providers are not required to obtain a separate licence to operate OTT services, but must comply with the Guidelines and seek prior approval from the Authority.

Bhutan does not impose functional separation on operators with significant market power (SMP) in the telecommunications market. However, the Bhutan InfoComm and Media Authority (BICMA) requires all operators to maintain accounting separation.
According to Art. 51.8 of the Bhutan Information, Communications and Media Act 2018, the BICMA is empowered to ensure the proper maintenance of accounting systems by public ICT providers and media service providers.
In this regard, BICMA issued the Rules and Regulations on Accounting Reports for ICT Services, which apply to all licensed ICT service and facility providers operating within Bhutan. Section 1 of these Rules requires service providers to maintain accounting records and prepare accounting separation reports accordingly.
Furthermore, Section 3.4 of the Rules and Regulations for Licensing and Operation of Internet Service Providers in Bhutan obliges internet service providers to implement accounting separation between their facilities and services by maintaining separate costs and charges for the different services they offer.

According to Section 2.3 of the Rules and Regulations on ICT Facilities and Services in Bhutan, only Bhutanese citizens are eligible to apply for an ICT facility licence, ICT service licence, or a consolidated licence, provided that the applicant does not hold a majority share in any other ICT facility or service licence.
Art. 464 of the Bhutan Information, Communications and Media Act 2018 defines ICT facilities and ICT services, encompassing: (i) telecommunications services, such as public telephony, telegraphy, facsimile, cellular telephony, and pay-phone/communication services; (ii) information technology services, such as internet services; and (iii) transmission facilities, including fixed links and cables, computer facilities, pay-phone/communication facilities, and radio communication transmitters, receivers, and links.
Additionally, the Rules and Regulations for Licensing and Operation of Internet Service Providers in Bhutan establish specific requirements for applications for an Internet Service Provider (ISP) licence.

Under Sections 59–60 of the Foreign Direct Investment Rules and Regulations 2025, the FDI process begins with an online registration application for activities open to FDI. Applicants must demonstrate compliance with the prescribed minimum investment thresholds and shareholding structures and submit the required supporting documentation, including corporate documents, investor identification documents, and, where applicable, the curriculum vitae of a local partner.
The application is then subject to administrative review and clearance. Under Sections 77–79, the Department of Industry (DoI) reviews and approves FDI projects and coordinates the required sectoral clearances, while the Invest Bhutan Division is authorised to expedite and approve priority sector proposals within three working days upon receipt of complete documentation. Sections 80–81 provide that proposals must be rejected where they do not meet the approval criteria, fail to comply with the Rules or other applicable laws, or where sectoral clearance is denied. Following approval, Section 84 requires the investor to obtain an online business licence within one month of project approval.
Finally, the Rules include localisation-related constraints on the use of foreign labour. Under Sections 46–47, FDI companies may apply for work permits for foreign professional and non-professional expatriates during the establishment and operational phases only where qualified and experienced Bhutanese personnel are not available, and recruitment must comply with applicable labour and immigration requirements. The Rules also encourage FDI companies to recruit and develop Bhutanese nationals.

Bhutan has not appended the World Trade Organization (WTO) Telecom Reference Paper to its schedule of commitments.

Section 5 of the Foreign Direct Investment Regulations 2025 distinguishes between: (1) “Priority Sector Activities” in the manufacturing and service sectors listed in Schedules I and II; and (2) “Other Activities” not listed in those Schedules. In practice, “Other Activities” operates as a residual category covering most sectors. For these activities, the minimum project cost is BTN 50 million (approx. USD 530,000) in the manufacturing sector and BTN 25 million (approx. USD 265,000) in the service sector (Section 7).

Section 28 of the Bhutan Information, Communications and Media Act 2018 establishes the Bhutan InfoComm and Media Authority (BICMA) as an autonomous regulatory authority for the telecommunications sector. It is reported that BICMA operates independently from the government in its decision-making processes.

Pursuant to Section 6 of the Foreign Direct Investment Regulations 2025, the minimum project cost for priority sector activities is set out in Schedules I and II. Under these Schedules, the minimum project cost for FDI in IT park development activities is BTN 200 million (approx. USD 2,140,000), while in the manufacturing sectors of electronics and electrical equipment, the minimum project cost is BTN 40 million (approx. USD 420,000).

According to Sections 143 and 144 of the Bhutan Information, Communications and Media Act 2018, foreign direct investment (FDI) in the ICT and media sector may be approved by the Cabinet, taking into account all relevant circumstances, including national interest and the prevailing FDI policy. On the basis of a written government policy, the Bhutan InfoComm and Media Authority (BICMA) is then empowered to issue licences permitting the participation of foreign companies in the ICT and media sector, subject to such terms and conditions as it may determine from time to time.
Section 464 of the Act further defines the scope of ICT services. These include: (i) telecommunications services, such as public telephony, telegraphy, facsimile, cellular telephony, and pay-phone/communication services; (ii) broadcasting services, including mobile satellite and subscription broadcasting; (iii) information technology services, such as internet services, webcasting, e-mail, and other electronic services; (iv) Internet Protocol (IP) telephony; (v) digital library and commercial information services; and (vi) network-based information and related specialised professional services provided by electronic means, public switched data, and other similar services.

According to Art. 35 of the Industrial Property Act of the Kingdom of Bhutan, where an applicant’s ordinary residence or principal place of business is outside Bhutan, the applicant must be represented either by a legal practitioner resident and practising in Bhutan or by a person duly registered as an industrial property agent.
Art. 60 of the Industrial Property Rules further specifies that both legal practitioners and other persons may apply for registration as industrial property agents. The requirements for registration include, inter alia, that the applicant must (i) be a citizen of Bhutan; (ii) be not less than 22 years of age; (iii) be a graduate of a university recognised by Bhutan or possess an equivalent qualification; or (iv) be a certified Bhutanese legal counsel licensed to practise before the courts of Bhutan (these legal counsels are referred to as 'jabmi' in the country).

Bhutan is not a party to the Patent Cooperation Treaty (PCT).

Bhutan maintains a copyright framework under the Copyright Act of the Kingdom of Bhutan of 2001. The Act does not adopt an open-ended fair use or fair dealing model; instead, it establishes a closed list of narrowly defined exceptions, which restricts lawful use to specific, enumerated purposes. Several of these exceptions, such as those relating to quotation and reproduction for teaching, are expressly conditioned on compliance with the principle of fair practice, requiring that the use be compatible with fair practice and limited to what is justified by the purpose. Arts. 10-17 set out these exceptions, which include private reproduction for personal purposes; quotation; reproduction for teaching; reprographic reproduction by libraries and archives; reproduction, broadcasting and other communication to the public for informational purposes; reproduction and adaptation of computer programs; importation for personal purposes; and the display of works.

It is reported that the enforcement of intellectual property (IP) rights in Bhutan faces persistent constraints, including limited institutional infrastructure, low legal awareness, and resource limitations. The Department of Media, Creative Industry, and Intellectual Property under the Ministry of Industry, Commerce and Employment (MoICE) is responsible for IP registration and enforcement functions, but public awareness and enforcement capacity are still developing. Copyright infringement is also reported to be widespread. For example, Samuh, an over-the-top (OTT) video streaming platform serving Bhutanese audiences domestically and abroad, has reported extensive unauthorised redistribution of its content via social media platforms such as Telegram, WeChat, Facebook, and TikTok, resulting in substantial economic losses.

Bhutan has not signed the World Intellectual Property Organization (WIPO) Copyright Treaty.

Bhutan has not signed the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.