The Bhutan Chamber of Commerce and Industry, BCCI is calling for an amendment to the Tenancy Act of Bhutan 2015, saying the current law does not adequately protect commercial tenants. In its Business Regulatory Review Report 2026, the chamber says businesses face uncertainty over tenancy termination and rent increases, making it difficult for them to operate and invest with confidence.
BCCI has raised concerns over Clauses 18.1 and 18.2 of the Tenancy Act. The provisions allow landlords to terminate a tenancy or reclaim a property by giving tenants two months’ written notice.
BCCI says while the period may be reasonable for residential tenants, two months is not sufficient for commercial establishments.
The chamber adds that hotels, automobile workshops and manufacturing businesses often invest heavily in machinery and specialised infrastructure, which cannot easily be relocated within the stipulated time.
It also says businesses risk losing investments made in approved structural improvements if their leases are not renewed.
“Let us cite an example of the Olakha workshop. Initially, the workshop was in Changzamtok many years ago, and they have relocated to private land in Olakha. So, down the line, what happened is, they had litigation between the owner and the tenant. And it went up to the Supreme Court for almost 10 years. Subsequently, this tenant lost the case. So, we feel that today’s tenancy act is in owners’ favour and we need further comprehensive review,” BCCI’s President Tandy Wangchuk.
The BCCI has proposed extending the notice period for commercial, industrial and service-sector tenancies from two months to six months.
It has also recommended requiring compensation for approved structural improvements when a lease is not renewed.
However, the Ministry of Infrastructure and Transport says the two-month period is a statutory minimum, and landlords and tenants can agree to a longer notice period in their tenancy agreements.
The BCCI has also recommended that the Ministry introduce a dedicated Commercial Tenancy Chapter under the Tenancy Rules and Regulations 2021 or establish a standalone Commercial Tenancy Regulation.
The chamber says such measures would provide greater certainty for businesses and encourage long-term private sector investment.
The Ministry says there are currently no immediate plans to amend the Tenancy Act. It says matters such as lease duration, notice periods and structural improvements remain within the contractual arrangements between landlords and tenants, provided they meet the minimum legal requirements.
Nonetheless, the Ministry says it will continue engaging with stakeholders, including the BCCI, and provide support to affected commercial ventures where appropriate.
Namgay Wangdi and Kelzang Chhophyel
Edited by Phub Gyem
