When you start your global expansion, you might consider setting up a subsidiary. These entities require an in-depth registration process, but the results can be advantageous to your growth. With Globalization Partners,...
Read MoreWhen you start your global expansion, you might consider setting up a subsidiary. These entities require an in-depth registration process, but the results can be advantageous to your growth. With Globalization Partners, you can enjoy the benefits of a subsidiary without the establishment process.
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When you start your global expansion, you might consider setting up a subsidiary. These entities require an in-depth registration process, but the results can be advantageous to your growth. With Globalization Partners, you can enjoy the benefits of a subsidiary without the establishment process.
Your subsidiary process will start with the Ministry of Economic Affairs. The Company Registry Division is responsible for monitoring all registered business names and ensuring no name repeats. You’ll need to find an available company name and reserve it for your incorporation.
After reserving your name, you’ll need a security clearance certificate (SCC) from the Royal Police. These certificates last for a year, and you’ll need to renew them annually to maintain the clearance.
From there, you’ll go back to the Ministry of Economic Affairs for the Industrial Department Division. You’ll need to submit an application and a project plan, and the department will confirm whether your business idea matches the country’s industrial development plans.
With all of the above steps complete, you’ll be ready to formally register your company with the Regulatory Authority for Companies at the Ministry of Economic Affairs. You will need a series of documents, including your company name clearance form, SCC, and industry clearance. Officials will also request your ID from your country of origin.
One of the more notable subsidiary laws is the required articles of incorporation. You’ll need to submit this document when you register for incorporation, and it will describe your company’s structure. It should include information like how you’ll appoint directors and track your finances.
When you apply for registration, your directors will sign a declaration of compliance to confirm that your entity will follow all associated laws. You may want to work with a lawyer while creating your articles of incorporation to ensure all processes observe the legal requirements.
Once you register your company, the law also requires that you maintain a license for conducting business. You’ll need to submit your project approval from the Industrial Department Division along with your ID and SCC. This license also requires a location clearance for conducting business, so you’ll need to obtain that from the Thimphu City Corporation.
While establishing an entity in a new country comes with its challenges, your new subsidiary will offer benefits as well. Your subsidiary will be a separate entity from your parent company, which means it has the freedom to develop its own identity. Your entity can embrace the local business culture and become integral to the professional landscape.
Your subsidiary will also have a separate legal presence. If your new company encounters any legal trouble, it won’t fall back on your parent company where it can cause more extensive damage.
When you work with Globalization Partners, we can hire your team through our existing subsidiary in Bhutan. This arrangement allows you to bypass the subsidiary process while reaping the benefits. Rather than separating your liability, you’ll eliminate it. All legal responsibilities will be on our shoulders, and you can have peace of mind while you grow your business.
Your two most essential resources during subsidiary setup are time and money. The complete application process takes a couple of weeks to complete, but this time frame doesn’t factor in finding a location, identifying directors, and creating your articles of incorporation.
You’ll have to pay fees for every application except your SCC. Your associated incorporation fees will vary depending on your authorized share capital. You’ll also have to consider the costs of your property, whether you rent or own it.
Globalization Partners will provide the benefits of an in-country entity without the registration process. Get in touch today to learn more about our subsidiary outsourcing.
If you’re ready to grow your business, or you have questions about a specific country, complete the form. One of our experts will be in touch shortly.
