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Starting a Business in

Mongolia

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Mongolia. It examines the procedures, time and cost involved in launching a commercial or industrial firm with between 10 and 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed in June 2016.

Compare Mongolia to 189 other economies.

  • No. Procedure Time to Complete Associated Costs
    1

    Verify and reserve a unique company name

    Agency: Legal Entities Registration Office, General Authority for State Registration of Mongolia

    The business owners must propose and reserve the name of the company with the Legal Entities Registration Office of the General Authority for State Registration of Mongolia (LERO). Upon approving the proposed name of the company, LERO will issue a name reservation slip (in writing or electronically) and a "bank account permission slip". The entrepreneur opens a temporary account at the bank within the same office and, at the same time, can instruct the bank to make a payment to the account of the Tax Authority.

    Although the company name may be reserved online, the name reservation slip is one of the documents that needs to be supplied in original for the incorporation purposes. As such, ultimately a visit to LERO in person is required. 
    1 day MNT 500
    2

    Open a bank account and pay registration fee

    Agency: Bank

    The company needs to have a bank account in order to register. Additionally, the registration fee needs to be paid at a commercial bank.
    1 day no charge
    3

    Register the company incorporation and register as tax payer

    Agency: Legal Entities Registration Office, General Authority for State Registration of Mongolia

    The following documents should be submitted at LERO in order to register incorporation and obtain a state registration certificate:
    1. Completed proforma application form;
    2. Bank account approval letter, and evidence of dormant account with some funds deposited;
    3. Company charter;
    4. Lease agreement with the company's official address;
    5. Founding or shareholders' resolution;
    6. Payment slip of the registration fee;
    7. Name reservation slip;
    8. Opening balance sheet; and
    9. Copies of the shareholders' passports (IDs).

    * For business activities that require licenses, these must be obtained first from the relevant authorities.

    On 29 January 2015, the Mongolian Parliament adopted the Revised Law on the State Registration of Legal Entities which entered into force on 1 March 2015. The relevant ancillary regulations were adopted on 27 February 2015 by the Ministry of Justice and the General Authority for State Registration of Mongolia. According to the new regulations, the Legal Entities Registration Office must process company registration within 5 business days. The same regulation also introduced online registration, which is yet to be put into practice.

    Upon registration of the company, the Registry automatically publishes a notice of company formation. The Registry also automatically pass the relevant documents to the tax department for the area in which the company is located. Thereafter, the company will be registered as a corporate income tax payer and VAT payer, if applicable.

    Under the Law of Mongolia on Value Added Tax dated 29 June 2006, a taxpayer should submit its request for registration as a VAT payer within 3 days of its sales income reaching MNT 10,000,000 (approximately US$ 5010), which is to be evidenced by certified corporate income tax and financial reports.
    2 days MNT 44,000
    4

    Apply for Social Security Code

    Agency: District Social Insurance Department

    Upon incorporation of the company and once a company has employee(s) it must register with relevant social insurance department. The registration is done in person, and the District Social Insurance Department assigns a social insurance code to the company. The service is free of charge. It is no longer necessary to obtain a paper certificate of social insurance registration.
    1 day no charge
    5

    Make a seal

    Agency: Sealmaker

    The company must first obtain a seal request form LERO. Then, the company must provide one of twelve seal makers in Ulaanbaatar who are currently registered with Ministry of Justice with a copy of its state registration certificate.
    1 day MNT 59,800 rush delivery fee