Price: from $4,000
Timeline: 14 days
Foreign investors have equal rights with local companies and receive the following benefits:
Mongolia offers some of the lowest tax rates in Asia for businesses. Simple tax administration without excessive bureaucracy.
Mongolia's legal framework provides robust protection and support for foreign investors.
Expert Registration Services — Navigate Mongolian Law with Confidence!
Before starting a business in Mongolia, it is important for investors to determine the appropriate legal form, as it affects liability, tax obligations, and permitted types of activities.
Legal Framework: Legal forms of business entities in Mongolia are regulated by the Law on Companies (2011), Law on State Registration of Legal Entities (2018). Specifics for foreign investors are defined in the Investment Law (2013).
Mongolian name: Хязгаарлагдмал хариуцлагатай компани (ХХК) — literally translates as "Limited Liability Company." This is the most common form of doing business in Mongolia, with approximately 90% of foreign investments using this structure.
An LLC is a classic commercial company suitable for any type of activity: trade, services, contracting, IT, export/import, etc. It is an independent legal entity and resident of Mongolia, with shareholders' liability limited to their contribution to the charter capital.
Founders: From 1 to 50 individuals or legal entities. A company can be established by a single founder, who may be a foreign citizen or foreign company.
Management: The highest authority is the Shareholders' Meeting. The executive body is the Director. A Board of Directors is not mandatory, which simplifies administration.
Liability: Limited to the contribution to charter capital. Personal assets of shareholders are protected.
For Mongolian citizens and companies with local founders, there is no minimum charter capital requirement established by law.
However, if an LLC is established by a sole foreign founder, the Investment Law requirement applies: such founder's contribution must be at least $100,000 USD (equivalent in Mongolian tugriks). This is a mandatory condition for registering a legal entity wholly owned by a foreign investor.
After registration, the company may use these funds for business operations: purchases, rent, salaries, marketing, and other operational expenses.
For a company to obtain "Foreign Investment Company" status and be eligible for investment visas and benefits, it must meet the Investment Law requirements:
The Director is appointed by decision of the founders and acts as the sole executive body of the company. Their powers, term of appointment, and decision-making procedures are established in the charter. There are no citizenship requirements for the director under the legislation.
The charter records key elements of corporate governance: distribution of shares, voting procedures, rules for transferring shares to third parties, and procedures for shareholder exit. This allows establishing a transparent governance structure in advance and avoiding corporate disputes in the early stages of company operations.
Mongolian name: Хувьцаат Компани (ХК)
A form for large businesses planning to raise capital through the Mongolian Stock Exchange (MSE). Used by banks, insurance companies, and large enterprises.
Capital: Divided into shares. There are two types: Open (shares are freely traded on the stock exchange) and Closed (share distribution is limited to a circle of shareholders).
Management: Mandatory presence of a Board of Directors (including independent members), Audit Committee, and Shareholders' Meeting. Strict disclosure requirements to the Financial Regulatory Commission (FRC).
A joint stock company is suitable only for large projects requiring public capital raising, or for operating in regulated sectors (banking, insurance, large-scale mining).
Mongolian name: Гадаадын хуулийн этгээдийн салбар
This is not a separate legal entity, but a structural division of a foreign company operating in Mongolia.
A branch is NOT an independent legal entity. It can conduct commercial activities and earn profits, but all liability rests with the parent foreign company.
Tax authorities treat the branch as a "Permanent Establishment of a non-resident." This leads to higher tax rates when transferring profits abroad; the withholding tax (WHT) on profit repatriation is 20%.
It is more difficult for a branch to obtain special licenses (for subsoil use, construction), as laws often require the status of a "legal entity established under the laws of Mongolia."
A branch is rarely used, typically for executing a specific short-term contract (e.g., construction project) without the intention of creating a permanent business presence in the country.
Mongolian name: Төлөөлөгчийн газар
An office for presence and representative functions, but not for commercial activities.
Commercial Activity: Strictly prohibited. A representative office cannot issue invoices to clients, enter into sales contracts on its own behalf, or earn profits from activities in Mongolia.
Functions: Limited to marketing, protecting the interests of the parent company, representative tasks, and market research.
Financing: Exists only on funds transferred by the parent company to cover operational expenses.
A representative office is the first step for studying the Mongolian market or a structure for non-commercial organizations. Suitable for temporary presence without conducting business.
When you work with us, company registration in Mongolia proceeds in several stages. Below are the practical steps required from the founder, not the administrative procedures in government agencies.
Registration is carried out based on an official agreement that specifies deadlines, service costs, and obligations of the parties. The agreement can be signed using an electronic signature or in paper form with subsequent submission of a scanned copy.
After signing the agreement, an advance payment of 50% of the service cost is made. Final payment is made after receiving the complete set of registration documents.
A notarized power of attorney is required to represent the founder's interests in Mongolia, certified at a Mongolian Consulate:
Selection and reservation of a unique company name with the State Registration Authority. Mongolian legislation requirements apply to the name: misleading names and already registered names are prohibited. Detailed naming requirements are provided after signing the agreement.
A special temporary account is opened at a Mongolian bank for depositing the charter capital. The founder transfers the required amount (minimum $100,000 USD for foreign founders).
After the charter capital is deposited, a complete set of documents is submitted to the State Registration Authority of Mongolia. Application processing time is 3 to 5 business days.
After receiving the state registration certificate, an official company seal is produced with its registration details.
Final stage — registration with tax authorities and social insurance agencies. The company receives tax identification numbers and can begin business operations.
Let’s Get Started — We Handle the Entire Process!
| What's Included | Basic | Business | Premium |
|---|---|---|---|
| Company Registration | Yes | Yes | Yes |
| Legal Address Provision | No | Yes | Yes |
| Residential Address for Individual Registration | No | No | Yes |
| Residence Permit Assistance | No | No | Yes |
| Personal Bank Account Opening Assistance | No | No | Yes |
| Price | 4000$ | 5500$ | 6000$ |
You will need the founder's passport and a power of attorney.
The process takes approximately 2 weeks from the moment the charter capital is deposited into the temporary account.
Yes, a foreign investor can own 100% of the company.
If a foreign investor will own more than 24% of the shares, the minimum is $100,000 USD.
The registration process is conducted remotely through a power of attorney. A visit is needed to collect the completed documents, obtain access, and set up online banking.
Corporate income tax from 1% to 10% depending on turnover, VAT 10% (if registered as a VAT payer).
A visa is not required for registration, but if you want to obtain a Mongolian residence permit, you must enter the country on a specific visa type and then apply for the residence permit.
