Phuentsholing is governed as a Class A Thromde (municipality), granting it a degree of administrative and financial autonomy from the broader Chukha District. The local government is headed by a Thrompon (Mayor), who is elected by the residents of the municipality's constituencies.
The Thromde administration is responsible for urban planning, waste management, water supply, and local infrastructure. Because it is a border town, there is also a heavy presence of national government authorities, particularly the Department of Revenue and Customs, the Department of Immigration, and the Royal Bhutan Police, who manage the busy international checkpoint.
