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.

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

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.

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.