Business Reforms in Mongolia
= Doing Business reform making it easier to do business. = Change making it more difficult to do business.
Getting Credit: Mongolia strengthened access to credit by introducing a new Law on Movable and Intangible Property Pledges and by setting up a new collateral registry. The new law implemented a functional secured transactions system. The collateral registry is operational, unified geographically, searchable by a debtor’s unique identifier, modern, and notice based.
Paying Taxes: Mongolia made paying taxes more burdensome by not allowing input VAT incurred on a business capital expenditure to be deducted as input credit.
Labor Market Regulation: Mongolia amended its legislation to reduce the maximum length of the employee probationary period.
Paying Taxes: Mongolia made paying taxes easier by introducing an electronic system for filing and payment of taxes.
Starting a Business: Mongolia made starting a business easier by reducing the number of days required to register a new company.
Getting Credit: In Mongolia the credit registry began distributing data from a utility company, improving access to credit information.
Protecting Minority Investors: Mongolia strengthened minority investor protections by introducing a requirement for public joint stock companies to publicly disclose related-party transactions within 2 business days.
Paying Taxes: Mongolia made paying taxes easier for companies by introducing an electronic system for filing corporate income tax, VAT and social security contributions.
Starting a Business: Mongolia made starting a business easier by eliminating the requirement to get company statutes and charters notarized as well as the requirement to register a new company with the local tax office.
Dealing with Construction Permits: Mongolia made dealing with construction permits easier by eliminating the requirement for a technical review of the building plans by the state for low- and medium-risk construction projects.
Getting Electricity: Mongolia made getting electricity easier by increasing the efficiency of the utility’s internal processes, enforcing time limits at different stages of the connection process and eliminating the fees for testing the installation.
Starting a Business: Mongolia made starting a business easier by eliminating the minimum capital requirement for limited liability companies.
Getting Credit: Mongolia improved access to credit information by adopting a law that provides for licensing of credit reference bureaus and guarantees borrowers’ right to inspect their personal data.
Protecting Minority Investors: Mongolia strengthened investor protections by increasing the disclosure requirements for related-party transactions.
Getting Credit: Mongolia improved its credit information system by eliminating the minimum threshold for loans included in the database.
Paying Taxes: Mongolia made paying taxes less costly for companies by reducing employers’ social insurance contribution rate.
Paying Taxes: Mongolia made paying taxes easier and less costly for companies by revising the tax code and reducing the profit tax rate.