Bhutan is a democratic, constitutional monarchy form of government. The king of Bhutan is the head of state, and executive power is vested in the cabinet, headed by Prime Minister.The form of government has changed from period of time to time. The dual system of government was installed and administered Bhutan till 1907 when Sir UgyenWangchuck became first king of Bhutan. From 1907 to 2008 years can be classified under monarchy form of government although Bhutan has started to decentralize from 1953 with launch of National Assembly of Bhutan. However, the institution of monarchs in Bhutan is very important as they are custodians of peace and happiness of people.