Mongolia - Establishing an Office Mongolia - Establishing an Office
The 2013 Investment Law (IL) of Mongolia authorizes foreign and domestic investors to establish business entities alone or jointly with other investors under the same legal and regulatory system, except for two rules imposed exclusively on foreign investors. The IL and its body of regulations require: (1) a “foreign state-owned legal entity” may hold a 33 percent or more equity stake in a legal entity of Mongolia in certain sectors (mining; banking and finance; and media and communications) only with permission of the Government of Mongolia; and (2) when foreign direct investment accounts for 25 percent or more of the equity of a Mongolian business, each involved foreign investor having invested $100,000 or more must individually register with Mongolian authorities.
All domestic and foreign enterprises must register with the General Authority for Intellectual Property and State Registration (GAIPSR). Registrants can obtain form UB 03-II and other required documents from the website and submit completed documents by email. GAIPSR aims for a two-day turnaround for the review and approval process, but investors report that complex cases can take anywhere from several weeks to three months. Once approved by GAIPSR, a company registers with the General Tax Authority of Mongolia (GTA). Upon hiring its first employees, a company next registers with the General Authority for Social Insurance (ASI). GAIPSR reports that notarization is not required for its registration process.
The following fees for establishing a business office in Mongolia are payable to GAIPSR:
- Opening of branch, representative office and unit – 1,100,000 Tg ($450)
- Establishing foreign invested entity – 750,000 Tg ($310)
- Registering changes in contracts and by-laws of branches, representative offices and units – 35,000 Tg ($14.50)
- New ID – 20,000 Tg ($8)
To become a legal entity in Mongolia, market entrants must register with the General Tax Authority of Mongolia (GTA). The GTA requires a $10 filing fee and the following documents:
- The agreement and charter signed by all parties involved in the venture.
- The certificate of approval from GAIPSR.
- A notarized schedule showing the equity or shares held by each partner.
- The local bank account numbers of tugrik and other currency accounts to be used by the venture.
- A copy of the foreign company representative's passport.
- A certificate showing the amount of capital held by the foreign company in its home country.
- A certificate of approval from the local administration where the venture will be based in Mongolia.
Applicants may need additional documents or to pay additional fees on a case-by-case basis.
District or aimag (provincial) tax offices will be informed about the registration of a market-entrant with the GTA. The new entity must register with the aimag tax office within 14 days of the GTA registration.
Registering with the General Authority for Social Insurance
Market entrants must register with the Social Insurance office of the respective district or aimag and get a social insurance certificate. The entity must provide a copy of its state registration certificate along with the original certificate.