𝐆𝐌𝐂 𝐔𝐧𝐯𝐞𝐢𝐥𝐬 𝐕𝐢𝐬𝐢𝐨𝐧𝐚𝐫𝐲 𝐋𝐞𝐠𝐚𝐥 𝐅𝐫𝐚𝐦𝐞𝐰𝐨𝐫𝐤 𝐰𝐢𝐭𝐡 𝐭𝐡𝐞 𝐀𝐩𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐋𝐚𝐰𝐬 𝐀𝐜𝐭 𝟐𝟎𝟐𝟒

…𝒂 𝒍𝒂𝒏𝒅𝒎𝒂𝒓𝒌 𝒍𝒆𝒈𝒂𝒍 𝒅𝒆𝒗𝒆𝒍𝒐𝒑𝒎𝒆𝒏𝒕 𝒑𝒐𝒔𝒊𝒕𝒊𝒐𝒏𝒔 𝑮𝑴𝑪 𝒂𝒔 𝒂 𝒅𝒚𝒏𝒂𝒎𝒊𝒄, 𝒔𝒖𝒔𝒕𝒂𝒊𝒏𝒂𝒃𝒍𝒆 𝒃𝒖𝒔𝒊𝒏𝒆𝒔𝒔 𝒉𝒖𝒃 𝒇𝒐𝒓 𝒕𝒉𝒆 𝒇𝒖𝒕𝒖𝒓𝒆, 𝒃𝒍𝒆𝒏𝒅𝒊𝒏𝒈 𝒊𝒏𝒕𝒆𝒓𝒏𝒂𝒕𝒊𝒐𝒏𝒂𝒍 𝒃𝒆𝒔𝒕 𝒑𝒓𝒂𝒄𝒕𝒊𝒄𝒆𝒔 𝒘𝒊𝒕𝒉 𝑩𝒉𝒖𝒕𝒂𝒏’𝒔 𝒄𝒐𝒓𝒆 𝒗𝒂𝒍𝒖𝒆𝒔

A historic chapter in the governance of Gelephu Mindfulness City (GMC) was written on Decmber 26, 2024 with the formal granting of GMC Law No. 1 of 2024, also known as the Application of Laws Act 2024. The landmark legislation was granted by His Majesty the King at the sacred Machhen Lhakhang within Punakha Dzong, a site deeply revered for its spiritual and national significance. His Majesty, serving as the Executive Chairperson of the GMC Board, led the ceremony in keeping with Bhutan’s tradition of seeking blessings from the nation’s most revered spiritual site for such pivotal national undertakings.

The ceremony, held on December 26, 2024, was attended by a distinguished group of officials, including the Prime Minister, the Chief Justice, the Chairperson of the Anti-Corruption Commission, and the Auditor General. Also present were GMC Governor Dasho Dr. Lotay Tshering, GMC Board Member Dasho Arun Kapur, and other key GMC officials.

This momentous occasion comes just months after the granting of the GMC Royal Charter in February 2024, which laid the groundwork for GMC’s designation as a Special Administrative Region (SAR).

At the heart of GMC Law No. 1 of 2024 is a pioneering legal framework that integrates elements of Singaporean common law and the Abu Dhabi Global Market (ADGM) financial services regulations. This hybrid model will provide GMC with a modern, transparent, and stable legal environment, ensuring that it can compete effectively on the global stage while offering businesses, investors, and entrepreneurs a seamless and secure framework for their operations.

The Application of Laws Act 2024 establishes clear guidelines for business incorporation, labor regulations, taxation, and financial services within GMC. By adopting well-established Singaporean laws such as the Companies Act 1967, Income Tax Act 1947, and Employment Act 1968, GMC ensures that businesses can operate within a world-class legal system. Additionally, ADGM financial regulations, including the Financial Services and Markets Regulations 2015, will govern the region’s financial sector, ensuring compliance with international best practices in areas like anti-money laundering and corporate governance.

A key aspect of the legal framework is its flexibility. The GMC Authority (GMCA), which will administer and enforce the laws, has the power to modify or substitute provisions where necessary to suit local conditions. This will enable GMC to remain agile, responding to challenges or opportunities while adhering to its overarching legal principles. In cases where there is a conflict between Singaporean law and ADGM regulations, the Application of Laws Act 2024 stipulates that Singaporean laws will prevail, unless the GMCA decides otherwise, offering businesses a clear and predictable legal environment.

The introduction of this legal framework marks a major step forward in making GMC an attractive destination for both local and international businesses. The hybrid legal model ensures that GMC operates within a predictable and stable environment, a critical factor for businesses looking for a jurisdiction where they can operate with confidence. With Singaporean laws providing a solid foundation for business operations, alongside the application of global financial regulations, GMC is poised to become a leading global business hub, particularly in sectors like finance, technology, and international trade.

However, the Application of Laws Act 2024 is not just a legal document; it is also deeply rooted in Bhutan’s values. The law is designed to foster an environment that promotes economic growth while ensuring the well-being of its people.

At the core of GMC’s development is Gross National Happiness (GNH), Bhutan’s guiding philosophy, which ensures that the region’s growth will be balanced, inclusive, and sustainable. The legal framework integrates principles of social harmony, environmental sustainability, and economic inclusivity, ensuring that GMC’s development will benefit the community while driving prosperity and innovation.

The GMC Authority (GMCA) will play a pivotal role in the governance of GMC. Until separate executive and judicial bodies are established, the GMCA will handle both executive and judicial functions, ensuring a cohesive and efficient regulatory environment during the region’s early stages of development. The GMCA’s role also includes providing guidance on the application of laws, offering flexibility and clarity for businesses operating in GMC.

As the legal framework takes root, GMC’s vision for the future is clear. With the Application of Laws Act 2024 now in place, GMC is ready to serve as a dynamic and thriving business hub, attracting both local and international enterprises. The region’s strategic focus on legal stability, transparency, and flexibility will make it an ideal location for businesses looking for a predictable and secure environment to grow and innovate. By incorporating the best of global legal practices while remaining rooted in Bhutanese values, GMC is set to emerge as a key player in the global economy for years to come.

With the formal launch of GMC Law No. 1 of 2024, the region has entered a new era of economic development and legal innovation. As GMC continues to evolve, its ability to attract investment, foster entrepreneurship, and promote sustainable growth will make it a cornerstone of Bhutan’s long-term economic success. The Application of Laws Act 2024 is not only a crucial legal milestone but also a statement of GMC’s commitment to becoming a leading global business hub, while adhering to the principles of sustainability, social well-being, and inclusive growth that define Bhutan’s national identity.