The cottage scale industries reform

The Hon’ble Tengye Lyonpo launched the “Guidelines for the Registration of Cottage Scale Industries 2021” along with the online Cottage Scale Industries Registration System through the G2B application services on 14 May 2021 of the Department of Cottage and Small Industry, Ministry of Economic Affairs.

The reform has been initiated to follow the principle of ‘allow first and regulate later’ approach to facilitate ease of starting cottage scale industries and do away with unnecessary regulatory related burdens. With this reform, an applicant for cottage scale industries will need to simply apply online and obtain a Registration Certificate (sample attached). The Registration Certification will have a validity of three (3) years. While the certificate holder shall be subject to various applicable taxes, they are exempted from registration and renewal fees.


The Registration system would reduce the burden of compliance by eliminating unnecessary approvals and submission of documents prior to establishment of a business. The intent of the reform is to make the process of starting cottage scale industries much easier and simpler. It is anticipated that this reform would encourage more aspiring entrepreneurs to venture into cottage scale industries, which would enhance economic diversification, create employment opportunities, enhance value addition to the locally available resources and contribute to overall socio-economic development of the country.


The Cottage Scale Registration Services is accessible from




During the same event, “CSI Technology Request Database” was also launched. The online technology request platform will facilitate entrepreneurs to search and adopt right and appropriate technology required for operating their business and thus, lead to increased productivity and growth. The online database platform would also serve as a means to exchange technology (both offers and technology requests) within and outside Bhutan. The online search engine is connected to select international data base centers which provide access to various technology suppliers.


The online database can be accessed from


Bhutan Association of Entrepreneurs – BAEyul

Ministry of Economic Affairs, Royal Government of Bhutan




The Guideline for the Cottage Scale Industries Registration 2021 is available from

The video tutorial and user manual are accessible from for the Registration of Cottage Scale Industries.