Bhutan lacks a comprehensive regime for the protection of trade secrets.

According to Section 51 of the Bhutan Information, Communications and Media Act 2018, the Bhutan InfoComm and Media Authority (BICMA) is mandated to regulate the interconnection and sharing of infrastructure and facilities between or among telecom facility providers. The Rules and Regulations on ICT Infrastructure Sharing 2019 further detail these obligations, requiring service providers to share passive infrastructure with other licensed providers on a “first-come, first-served” basis, and to publish on their websites detailed information regarding infrastructure available for sharing. Infrastructure sharing must be formalised through a written agreement grounded in the principles of neutrality, transparency, non-discrimination, and fair competition. A copy of the agreement must be submitted to BICMA within one month of its signing.

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. As the telecom sector is not explicitly included in the schedules, it falls under the “Other Activities” category, for which the maximum foreign investor shareholding is capped at 74% equity (section 7).

Bhutan Telecom Limited (BTL), a fully state-owned enterprise, is one of the leading telecommunications and internet service providers in Bhutan. It was established in the year 2000 through the corporatisation of the former Department of Telecommunications. BTL offers a broad range of services, including fixed-line and mobile telephony, internet and data services, leased-line connectivity, and international gateway services.

Pursuant to Section 4 of the Foreign Direct Investment Regulations 2025, foreign direct investment is permitted in all sectors except those enumerated in Schedule III. This schedule encompasses, inter alia, news media and “activities included in the Prohibited List of the Royal Government.” The latter list could not be found online, and therefore, it remains uncertain whether the activities specified in Schedule IV extend to the digital domain.

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. Under Section 7, for “Other Activities”, the maximum foreign investor shareholding is capped at 74% equity. The limit, therefore, applies to virtually all sectors of the economy. Moreover, there is an explicit cap of 74% for the manufacturing of electronics (schedule I) and for cross-border electronic payments and money transmission services (schedule II).
In addition, the Regulations permit FDI in an existing domestic entity on the same terms and conditions applicable to new entities, subject to the same 74% cap on foreign investor shareholding.

Bhutan is not a signatory of the 1996 World Trade Organization (WTO) Information Technology Agreement (ITA) nor the 2015 expansion (ITA II). In fact, the country is not a member of the WTO.

According to Section 18, of the Procurement Rules and Regulations 2025, a procuring agency may conduct tendering from foreign bidders only under the following circumstances: (i) when certain goods, domestic contractors with the required capacity to undertake specific works, or service providers are not available in the country; or (ii) in donor-funded projects, where the funding agreement requires the procuring agency to approach the international market.

Pursuant to Section 64 of the Procurement Rules and Regulations 2025, bidding documents must expressly provide for a 20% margin of preference for: (i) goods of Bhutanese origin, in accordance with the Domestic Preference Guideline 2020 issued by the Ministry of Finance; or (ii) national bidders, where the procurement involves foreign bidders.
In addition, Section 54 requires goods, equipment, materials, and workmanship to comply with applicable standards. Procuring agencies are encouraged to prioritise nationally recognised standards when defining technical requirements. Where national standards are unavailable, unsuitable, or inadequate, international standards may be used.

Reports highlight persistent challenges within Bhutan’s public procurement system, notably the need for timely invoice payments via the electronic government procurement (e-GP) platform, comprehensive record-keeping, adequate resourcing and staffing, and improved inter-institutional coordination. Despite an established legal and regulatory framework, practical implementation issues persist. In 2024, controversy arose when the government awarded direct contracts for laptops and desktops to the State Trading Corporation of Bhutan Limited (STCBL), prompting objections from private IT firms on grounds of unfairness, non-compliance with the Procurement Rules and Regulations (PRR) 2023, and insufficient stakeholder consultation. The government subsequently annulled the STCBL contract.

Bhutan is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). In fact, the country is not a member of the WTO.

It is reported that the de minimis threshold, that is the minimum value of goods below which customs do not charge duties, is BND 400 (approx. USD 300), above the 200 USD threshold recommended by the International Chamber of Commerce (ICC).

According to Arts. 3.1 and 3.6 of the BNNIC Registration Policies, Procedures, and Guidelines, foreign companies or businesses may register for ".bn" and "com.bn" domains only if they have a registered trademark with the Registrar of Trademarks.