The Easier Process of Company Registration in Mongolia by 3E Accounting
Company registration in Mongolia is bureaucratic and paper-based. Though some reforms are designed to improve and help the process to be in the pipeline. The process to set up a business in Mongolia is fairly simple and the laws regulating them are pretty flexible too.
Company Registration in Mongolia
There are different types of corporations that can be registered in Mongolia.
Limited Liability Company (LLC)
This only requires one shareholder and one director.
Joint Stock Company (JSC)
- At least 2 shareholders are needed, who may be a non-resident foreign individual.
- A board of directors, comprising of at least 9 members, must also be appointed.
- For shareholder(s) holding more than 25% stake, will be required to contribute US$100,000 to the company.
- It is possible for a JSC to operate as a private entity and not list on the stock exchange.
- The appointment of an authorized agent is required because this will act on behalf of the entity in Mongolia.
- This entity is used where there is no intention to carry out income-generating activities in Mongolia.
The shareholder for both the LLC and the JSC can be a non-resident foreign individual. The incorporation process takes 6 to 8 weeks. Then, allow a timeframe of 4 weeks to open a company bank account. The corporate tax payable in Mongolia is 25% is required of LLC and JSC. The shareholder needs to invest a minimum capital of US$100,000 with a 25% stake in the company.
Why Invest in Mongolia?
Mongolia has a growing market and great export opportunities open for investors from different countries. It can be as a huge Launchpad for investors to enter China’s or Russia’s market as well as a good gateway to other markets. Mongolia has an odd competitive position in a specific sector because of the growing interest in the global market in ecologically pure products. Food processing, agriculture, ecotourism is among the few. On a different note, there are “traditional” sectors that have firm competitive features. Some of them are oil exploration, coal production and gold mining. The factors to attract foreign investors are the flexible regulations in regards to foreign ownership and possible low utilities. In regards to human resources, the country is a young nation with a relatively healthy and well-educated population.
Mongolia is a perfect country where you can start your business. Language barriers and inconsistent application of laws and regulations can be irregularities but the business opportunities here are far greater than these flaws. The process to register a company in Mongolia is really simple. We, from 3E Accounting, will assist you to take this process smoothly.