Sikkim Democratic Party or SDP has been in power in Sikkim for nearly 25 years.
Mr Bhutia said his focus would be to strengthen his Hamro Sikkim Party to oust the state's longest-serving Chief Minister Pawan Chamling and his SDP.
"We are open to a federal front or a third front. But today our focus is to build our party stronger and change the government in Sikkim. Our party would fight the corrupt government of Sikkim," the 41-year-old former striker said.
He said his party is inspired by the Aam Aadmi Party, which governs Delhi. He said the AAP's fight against corruption has brought the party "close to the people".
"In terms of corruption, we were inspired by how the Aam Aadmi Party came up. Compared to Delhi, Sikkim is not a very democratic state. People here are not able to voice their discontent. If they raise their voice against the government, they are victimised. That is one of the biggest challenge in the state," he said.
He then formed his political party along with a few friends. Mr Bhutia said though his political party is youth-based, there are experienced people to guide the new outfit.
"Our main aim is to fight against corruption and the present government, which is extremely corrupt. And also (against) menaces like unemployment and drug abuse," he said.
Winning elections has been tougher than scoring goals for the former footballer, however he believes his second innings in the political field would be rather successful as he is the "son of the soil" and understands the problems that hinder the development of Sikkim.