Company Registration in Mongolia
Price: from $3,000
Timeline: 14 days
Why Set Up a Business in Mongolia
Foreign investors have the same rights as local companies and enjoy the following advantages.
100% Foreign Ownership
Mongolia does not require a local partner. A foreign investor can own and control the company outright.
- A single foreign individual or legal entity can be the sole founder
- The director can be any nationality
- All decisions rest with the founders, with no government approval required
Banking Without Restrictions
Mongolia is on the FATF white list and maintains direct correspondent relationships with US and EU banks.
- SWIFT transfers in USD and EUR processed in 1-2 business days
- Multi-currency accounts (USD, EUR, CNY and others)
- Currency conversion at market rates
Free Repatriation of Profits
- Dividends can be transferred abroad without Central Bank approval
- Dividend tax of 10% under applicable double tax treaties
- Full control over capital flows
Access to Major Asian Markets
- Direct land border and rail links with China and Russia
- Duty-free export of 7,200+ goods to the EU under the GSP+ programme
- Economic partnership agreement with Japan (EPA)
Taxation of Companies in Mongolia
Mongolia offers a relatively low tax burden for small and medium-sized businesses compared to most countries in the region.
Corporate Income Tax
The corporate tax rate in Mongolia follows a progressive scale based on taxable income.
- Up to 6 billion MNT (approx. $1,700,000): 10%
- Above 6 billion MNT: 25%
Certain small and medium-sized businesses qualify for preferential tax regimes that can significantly reduce the effective tax rate. The tax period is the calendar year.
Most of our clients are small and mid-sized companies in trade, services, logistics and international supply. We help structure accounting and tax reporting so that the tax position stays predictable and fully compliant with Mongolian law.
VAT
The standard VAT rate in Mongolia is 10% and applies to most goods and services.
When VAT Registration Becomes Mandatory
A company must register as a VAT payer once its turnover exceeds 50 million MNT (approx. $14,000) in any consecutive 12-month period. Voluntary registration is available below this threshold.
VAT-registered companies may deduct input VAT on goods and services used in their business activities, in accordance with Mongolian tax law.
Withholding Tax on Dividends and Payments to Non-Residents
Payments of dividends and other income to non-residents may be subject to withholding tax (WHT). The applicable rate depends on the type of income, the recipient's status, and whether a double tax treaty is in place.
Dividends
- WHT may apply to dividend payments made to non-resident shareholders
- The rate can be reduced under a double tax treaty
- A tax residency certificate from the recipient is typically required to claim treaty benefits
Branch Profit Remittance
- Additional tax rules apply when a foreign company branch transfers profits out of Mongolia
- This is one reason most foreign investors choose to register an LLC rather than operate through a branch
Stability Certificates
A stability certificate is a statutory mechanism that protects investors against changes in the tax regime. Once issued, certain tax conditions of the project are locked in for a defined period.
Key Parameters
- Tax conditions can be fixed for 5 to 18 years, depending on the industry and investment volume
- The mechanism is primarily available to large-scale investment projects
- Minimum investment thresholds vary by sector, region and project structure
- Certificates are issued by the Mongolian government body responsible for investment affairs
Obtaining a stability certificate requires preparing an investment project file, a financial model and coordinating with Mongolian state authorities. We handle the process from document preparation through to receiving the final decision.
Double Tax Treaties
Mongolia has active double tax treaties (DTTs) with a number of European and Asian countries, which can reduce the tax burden on cross-border payments and income distributions.
Countries with Active Treaties
Key partners include Russia, China, Germany, France, the Netherlands, Luxembourg, Austria, Singapore, Japan, South Korea, India, Turkey, Kazakhstan, Belarus, Switzerland and several other states.
Practical Implications
- Eliminates or reduces double taxation on the same income in two countries
- Can lower withholding tax rates on dividends, interest and royalties
- A tax residency certificate from the recipient is typically required to claim treaty benefits
Our Company Registration Services in Mongolia
Full Business Support
- Company registration
- Accounting outsourcing
- Liaison with regulators
- Tax planning advice within the law
- In-house lawyers and accountants
Bank Selection and Compliance Support
- Familiar with the KYC/AML policies of all major Mongolian banks
- We match the right bank to your ownership structure and transaction profile
- Direct contacts within bank compliance departments
Local Market Knowledge
- Operating in Mongolia since 2011
- We understand the local business culture and how decisions get made
- Established working relationships with regulators
Registration without the headaches.
We know every detail of Mongolian corporate law.
Legal Forms for Companies in Mongolia
Before setting up a business in Mongolia, investors need to choose the right legal structure. The choice affects liability, tax obligations and permitted activities.
Legal basis: Company structures in Mongolia are governed by the Companies Act (2011) (original), the State Registration of Legal Entities Act (2018) (original), and the Investment Act (2013) (original), which covers the rules specific to foreign investors.
1
Limited Liability Company
Хязгаарлагдмал хариуцлагатай компани (ХХК)
The most common business structure in Mongolia. Around 90% of foreign investment enters through an LLC. It is a separate legal entity, resident in Mongolia, and founders' liability is limited to their share in the company. It suits any type of commercial activity: trade, services, contracting, IT, import and export.
Key Characteristics
Founders: 1 to 50 individuals or legal entities. The company can be incorporated by a single founder, whether an individual or a corporate entity.
Management: The supreme body is the Founders' Meeting. The executive body is the Director. A Board of Directors is not required, which keeps administration simple.
Liability: Limited to the founder's share. Personal assets are protected.
Share Capital
For Mongolian nationals and companies with local founders, no minimum share capital is set by law.
If the LLC is incorporated by a sole foreign founder, the Investment Act requires a minimum contribution of $100,000 USD (equivalent in Mongolian tugrik). After registration, the company may use these funds for any business purpose: procurement, rent, payroll, marketing.
Paying in the share capital is only part of the process. It also needs to be properly recorded in the accounts. Our team handles all the paperwork, prepares the accounting entries and ensures the capital is reflected correctly under Mongolian law.
Corporate Structure and Management
The Director is appointed by the founders and acts as the sole executive body. There are no nationality requirements for the director. The charter sets out the core governance rules: share distribution, voting procedures, rules on transferring shares to third parties, and exit procedures for founders.
Foreign Investment Company Status
To obtain the status of a "Foreign Investment Company" and qualify for investment visas and tax incentives, the company must meet the requirements of the Investment Act:
Foreign Investment Company
Minimum foreign ownership share
at least 25%
Minimum investment per foreign investor
at least $100,000
Form of investment
cash or in-kind
Eligibility for investment visas and incentives
yes
Foreign ownership
up to 100%
2
Joint Stock Company
Хувьцаат Компани (ХК)
A structure for large businesses planning to raise capital through the Mongolian Stock Exchange (MSE). Used by banks, insurance companies and major enterprises.
Key Characteristics
Capital: divided into shares. Two types exist: Public (shares traded freely on the exchange) and Private (share distribution is restricted to a defined group of shareholders).
Management: a Board of Directors (including independent members), an Audit Committee and a Shareholders' Meeting are all mandatory. Strict disclosure requirements apply, overseen by the Financial Regulatory Commission (FRC).
3
Branch of a Foreign Company
Гадаадын хуулийн этгээдийн салбар
A branch is not a separate legal entity. It is a structural unit of the foreign parent company operating in Mongolia.
Key Characteristics
The branch is NOT a separate legal entity. It may carry out commercial activity and earn revenue, but all liability rests with the parent company abroad.
Mongolian tax authorities treat a branch as a "permanent establishment of a non-resident." This results in a higher withholding tax rate of 20% on profit remittances. Branches also face more difficulty obtaining special licences (mining, construction), since the law often requires a legal entity incorporated under Mongolian law.
4
Representative Office
Төлөөлөгчийн газар
An office for representation and administrative functions only. Commercial activity is not permitted.
Key Characteristics
Commercial activity: strictly prohibited. The office cannot invoice clients, sign sales contracts in its own name or earn income from activities in Mongolia.
Permitted functions: marketing, protecting the interests of the parent company, representation and market research.
Funding: the office is financed solely through transfers from the parent company to cover operating costs.
How to Register a Company in Mongolia
When you work with us, registration follows a clear sequence of steps. Below are the actions required from the founder, not the administrative procedures handled on our end.
01
Service Agreement
Registration begins with a formal service agreement that sets out the timeline, cost and obligations of both parties. The agreement can be signed electronically or as a paper original sent as a scan.
02
Advance Payment
After signing, the founder pays 50% of the service fee. The remaining balance is due once the full set of registration documents has been received.
03
Notarised Power of Attorney
We provide the draft text. The document is certified at any Mongolian Consulate in your country. Physical delivery is not required; a QR code is sufficient. The original is collected by a notary in Mongolia using the QR code.
04
Company Name Reservation
We select and reserve a unique company name with the State Registration Authority. Mongolian law prohibits names that are misleading or already registered. Detailed naming requirements are provided after the service agreement is signed.
05
Temporary Account and Share Capital Deposit
A temporary blocked account is opened at a Mongolian bank to receive the share capital. The founder transfers the required amount (minimum $100,000 USD for foreign founders). No transactions are processed from this account until registration is complete.
06
Filing for State Registration
Once the share capital is deposited, the full document package is submitted to the State Registration Authority of Mongolia. Processing takes 3 to 5 business days.
07
Company Seal
After the certificate of state registration is issued, the official company seal is produced with the company's registration details.
08
Tax Registration
The final step: registration with the tax authorities and social insurance body. The company receives its tax identification numbers and is ready to begin operations.
Opening a Bank Account in Mongolia
Account opening happens in two stages: a temporary account for the share capital deposit before registration, and a current account once the registration certificate is in hand.
Choosing a Bank
Several large commercial banks in Mongolia offer international settlement services:
- Khan Bank
- Golomt Bank
- Trade and Development Bank (TDB)
- XacBank
- Capitron Bank
Each bank has its own compliance policy, risk appetite and approach to foreign clients, including Russian nationals.
Compliance requirements differ significantly between Mongolian banks, particularly for foreign founders from certain jurisdictions. We match the right bank to your ownership structure and the nature of your planned transactions.
Documents and In-Person Requirements
The standard document package for account opening:
- Certificate of state registration
- Company charter
- Founders' resolution on the appointment of the director
- Passports of the director and beneficial owners
A personal visit to the bank is not always necessary. In some banks, the process can be completed through an authorised representative acting under a power of attorney.
Depositing Share Capital
Mongolian banks accept share capital transfers in most major international currencies. We advise on the most practical transfer route based on your banking setup.
Ready to set up your company?
We handle the entire process.
Service Pricing
All packages include the state registration fee (approx. $400). There are no additional charges for this.
| What's included | Basic | Business | Premium |
|---|---|---|---|
| Company registration | Yes | Yes | Yes |
| Legal address provision | No | Yes | Yes |
| Address for personal registration | No | No | Yes |
| Residency permit assistance | No | No | Yes |
| Personal bank account assistance | No | No | Yes |
| Price | 3000$ | 3500$ | 4000$ |
Frequently Asked Questions
What documents are needed to register a company in Mongolia?
You need a founder's passport and a notarised power of attorney.
How long does LLC registration in Mongolia take?
The process takes about two weeks from the moment the share capital arrives in the temporary account.
Can a foreigner own a business in Mongolia without a local partner?
Yes. A foreign investor can own 100% of the company.
What is the minimum share capital for registering a company in Mongolia?
If a foreign investor holds more than 24%, the minimum is $100,000 USD.
Can I register a company in Mongolia remotely?
The registration itself is done remotely through a power of attorney. A visit to Mongolia is needed to collect the documents, set up bank access and configure online banking.
What taxes does a company pay in Mongolia after registration?
Corporate income tax of 10% to 25% depending on profit, and VAT at 10% if the company is a registered VAT payer.
Do I need a business visa to register a company in Mongolia?
No visa is required for registration. If you want to obtain a Mongolian residency permit, you will need to enter the country on a specific visa type and then apply for residency.