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 www.g2b.gov.bt