National Land Commission

Land Lease Section

The leasing of State Land (SL) stands as a pivotal initiative undertaken by the Royal Government of Bhutan (RGoB) with the overarching goal of promoting socio-economic development. This process entails the temporary transfer of land-use rights from the government to individuals or entities, fostering support for agriculture, rural livelihoods, and infrastructure development. Emphasizing responsible land use, this approach aligns with the broader objectives of sustainable development within the country.

Eligibility to lease
  • In accordance with Section 306 of the Land Act 2007, juristic persons listed under Section 58 of the Act, including companies registered under the Companies Act of the Kingdom of Bhutan 2016 and the amendments thereof shall be eligible to lease land for purposes permitted under this rule. However, concerned Local Authority and or Ministry may adopt additional criteria for prioritization of activities and preference of groups and cooperatives over individuals depending on general needs and conditions to ensure sustainable and optimum use of land.
  • Proponents having registered land suitable for economic, commercial and business activities within the proposed locality shall not be eligible for land on lease.
  • Foreign Direct Investment (FDI) companies incorporated under the Companies Act of Bhutan 2016 shall be eligible for land on lease.

Leasing of state land involves two stages:

Preliminary approval (PA):

  • For the PA the applicant shall prepare a business proposal and submit it to the Dzongkhag.
  • Based on the Letter of interest issued by the relevant sector under Dzongkhag/Thromde or relevant agencies, the Dzongkhag Land lease or Thromde Land lease committee (DLLC/TLLC) on behalf of the applicant submits proposal to NLCS requesting for a PA as per prescribed FORM PA.
  • NLCS upon reviewing the proposal process for preliminary approval and accords PA to the Dzongkhag/Thromde with a copy to Applicant.

Final Approval: Once the PA is accorded, the proponent has six months (except for Mining activities which has the validity of 3 years) to process the lease with DLLC/TLLC.                          

  • The DLLC/TLLC shall carry out field verification based on FORM BA-2,CA-2,SL-2 and submit the detailed report and stakeholders clearances  along with the recommendations of the committee to the Secretariat for the final approval and issuance of Land Lease Certificate(LLC). 
  • NLCS upon receiving the proposal will process for final approval and if approved the LLC shall be issued to the respective Dzongkhag/Thromde for the survey and demarcation,handing over of land, execution of lease agreement,collection of lease rent and monitoring of leased land (annually).
Required Documents:

Preliminary Approval:

  • Letter of Interest from the relevant sector under  Dzongkhag/Thromde or Agencies
  • FORM BA-1 ,CA-1,SL-1
  • Business Proposal


Final Approval 

  • FORM BA-2 ,CA-2
  • FORM BA-3 ,CA-3
  • Sectoral Clearances.
  • Survey report
  • Map (hard & soft copy)
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