As far as we know Bhutan is not a party to the Apostille Convention, so documents are notarised or certified in Bhutan, attested by the Ministry of Foreign Affairs and External Trade and then by the Embassy of India in Thimphu or the Consulate General in Phuentsholing. Bhutanese citizens need RBI permission to acquire immovable property in India, and investment from Bhutan needs government approval because Bhutan shares a land border with India. India and Bhutan have a tax treaty.
- Document route
- Bhutanese certification, Ministry of Foreign Affairs attestation, then Indian Embassy attestation
- Time difference
- IST is 30 minutes behind Bhutan all year
- Foreign judgments in India
- Not reciprocating: fresh suit
- Apostille with India
- Not in force as far as known: consular attestation (check current status)
Indians in Bhutan and Bhutanese business with India
Indian citizens do not need a visa to work in Bhutan, and many spend years there as engineers on hydropower and road projects, as teachers and doctors, or running businesses in Phuentsholing and Gelephu. Bhutanese companies import almost all their materials and consumer goods from India, hire Indian contractors, and increasingly look at investing in India. Bhutanese families also study, receive medical treatment and buy homes in Siliguri, Kolkata, Delhi and Bengaluru.
We help with powers of attorney for property and banking, buying and selling Indian property, supply and construction contracts, Indian company setup through the approval route, succession to relatives' assets in India, and recovering money owed by Indian suppliers or buyers.
Signing documents in Bhutan for use in India
Bhutan is not, as far as we are aware, a party to the Hague Apostille Convention, so documents follow the legalisation route. Confirm the current procedure with us before you sign. The usual chain is:
- Have the document executed and certified before the competent authority in Bhutan, such as a court-registered notary or the relevant dzongkhag office, with your citizenship identity card or passport.
- Have it attested by the Ministry of Foreign Affairs and External Trade in Thimphu.
- Have it attested by the Embassy of India in Thimphu or the Consulate General in Phuentsholing, then take or courier it to India and stamp it within three months.
Indian citizens working in Bhutan can usually sign before the Indian consular officer instead, and many simply sign documents when they next visit India, which is quick by road through Jaigaon. Documents in Dzongkha need a certified English translation.
Most requested services from Bhutan
These six services cover most of what people and businesses in Bhutan need from an Indian lawyer. Each page explains the route from Bhutan, including attestation by the Ministry and the Indian mission, and what then happens in India.
Power of Attorney
A power attested in Thimphu lets a relative or colleague in India act on property, bank or court work.
Buying & Selling Property
Indians in Bhutan buy and sell homes in India; Bhutanese citizens first need RBI permission.
Commercial Contracts
Supply, construction and hydropower contracts with Indian companies that can be enforced in India.
Company Setup for Foreigners
Bhutanese investors set up Indian companies through the government approval route.
Succession Certificate
Heirs in Bhutan claim deposits and shares left by relatives who died in India.
Money Recovery from India
Bhutanese businesses recover advances, unpaid dues and bounced cheques from Indian parties.
Property and investment rules for Bhutanese citizens
Under the FEMA (Non-Debt Instruments) Rules 2019, a citizen of Bhutan living outside India needs prior RBI permission to acquire or transfer immovable property in India, other than a lease of up to five years. Since April 2020, any investment into an Indian company by an entity or beneficial owner from a country sharing a land border with India, including Bhutan, needs approval from the Government of India. We prepare the approval application and the supporting ownership details for Bhutanese investors.
Indian citizens working in Bhutan may become non-residents under FEMA and the Income-tax Act if they are away long enough, which affects their bank accounts and the tax on their Indian income. We advise on the change of status.
The India and Bhutan tax treaty and moving money
India and Bhutan signed a double taxation avoidance agreement in 2013. Bhutanese tax residents can claim treaty benefits on Indian income with a tax residence certificate and Form 10F. Rent and capital gains on Indian property are generally taxed in India. The Indian rupee circulates in Bhutan alongside the ngultrum, but remittances of sale proceeds and investment returns still have to follow FEMA and banking rules.
Bhutanese judgments, contracts and disputes
Bhutan has not been notified as a reciprocating territory under section 44A of the Code of Civil Procedure, so a Bhutanese judgment can only found a fresh suit in India, subject to section 13. As far as we know Bhutan is not a party to the New York Convention, so an award made in Bhutan may not be enforceable in India under Part II of the Arbitration Act. For contracts with Indian parties, an arbitration clause with an Indian seat, or a seat in a Convention country, is usually safer.
All services for clients in Bhutan
NRI Property Law
- Property Disputes
- Encroachment & Illegal Possession
- Partition of Family Property
- Buying & Selling Property
- Title Search & Due Diligence
- Tenant Eviction
- Builder Delay & RERA
Inheritance & Documents
Cross-Border Family Law
- Divorce for NRIs
- International Child Custody
- Maintenance & Alimony
- Marriage Registration
- 498A & Dowry Case Defence
- OCI Card Issues
Doing Business in India
- Company Setup for Foreigners
- Indian Subsidiary Setup
- Branch & Liaison Office
- FDI & FEMA Compliance
- Trademark Protection in India
- Commercial Contracts
- Employment Law for Foreign Employers
- GST for Foreign Businesses
- Investing in Indian Startups
- Legal Advisory for NRI Investors
Disputes & Enforcement
- International Arbitration
- Enforcing Foreign Judgments
- Money Recovery from India
- Shareholder Disputes & NCLT
- Accident Compensation Claims
- Cyber & Investment Fraud
- Criminal Defence & Look Out Circulars
Cross-Border Tax & Money
Indian missions in Bhutan
The Embassy in Thimphu and the Consulate General in Phuentsholing provide consular and attestation services for Indian nationals in Bhutan.
- Embassy of India, Thimphu
- Consulate General of India, Phuentsholing
Frequently asked questions
Does Bhutan issue apostilles for documents going to India?
As far as we know Bhutan is not a party to the Apostille Convention, so documents are attested by the Ministry of Foreign Affairs and External Trade and the Indian mission.
Can a Bhutanese citizen buy a flat in India?
Only with prior RBI permission, because Bhutan is one of the countries whose citizens need permission to acquire immovable property in India.
Does a Bhutanese company need approval to invest in an Indian company?
Yes. Since 2020, investment from countries sharing a land border with India, including Bhutan, needs Government of India approval.
I am an Indian working in Bhutan. Am I an NRI?
You may be, depending on how long you stay outside India. It affects your bank accounts and income tax, so check your status each year.
Can a Bhutanese judgment be enforced in India?
Not directly. Bhutan is not a reciprocating territory, so a fresh suit is filed in India.
Is it easier to sign documents in India?
Often yes. Signing before an Indian notary or sub-registrar avoids the legalisation chain.
Is there a tax treaty between India and Bhutan?
Yes, signed in 2013, which can reduce tax on some cross-border income.
How do we communicate?
By video call, email and WhatsApp, or in person in Mohali. Bhutan is only 30 minutes ahead of India.