Set Up & Operate

Establishing a Foreign-Invested Company

The Investment and Trade Agency provides comprehensive information, advisory services, and operational support to foreign individual investors and legal entities throughout the entire process of company registration in Mongolia.

General Requirements for a Foreign-Invested Company

To qualify as a foreign-invested company in Mongolia, the following requirements must be met:

A foreign investor must hold 25% or more ownership of the company’s shares.
Each foreign investor must contribute an investment of at least USD 100,000.

This version is more concise and suitable for an investor guide or company registration section of an official website.

Available Business Structures

Limited Liability Company (LLC)
Joint Venture Company
Representative Office

Required Мaterials

Identification Card or Passport of the Founder(s)
Company Charter (Articles of Association)
Shareholders’ Resolution
Proof of Business Address
Proof of Investment

Processing Time

Company registration is typically completed within 5–10 business days, provided that all required documents are submitted in full and meet the applicable requirements.

Support and Services

The Investment and Trade Agency (ITA) is committed to supporting investors throughout the company establishment process by:

Providing comprehensive information and investment guidance
Assisting with company registration procedures
Coordinating with relevant government authorities
Facilitating a transparent and investor-friendly business environment

Company Operations

Tax and Social Insurance issues

The Investment and Trade Agency offers information and guidance on taxes and social insurance for businesses and foreign investors.

General Overview

Entities and organizations operating in Mongolia are required to comply with relevant tax and social insurance legislation and complete all necessary registrations.

Types of Taxes

Businesses are subject to the following primary tax obligations:

Corporate Income Tax (CIT)
Value-Added Tax (VAT)
Personal Income Tax (PIT)
Customs and Excise Duties (if applicable)

Labor Relations

The Investment and Trade Agency provides information and legal guidance regarding labor relations to enterprises and investors.

General Overview

Labor relations in Mongolia are regulated by the Labor Law and other applicable legal frameworks. Employers and employees exercise their rights and obligations in accordance with the law.

Employment Contracts

An employment contract must be established between the employer and employee.
The contract must clearly specify working conditions, remuneration, working hours, leave, and related terms.
All contracts must be executed in writing and comply with relevant legal regulations.

Business Laws and Regulations

The Investment and Trade Agency provides comprehensive guidance on Mongolia’s legal framework for business activities to both domestic and foreign investors.

General Overview

Business operations in Mongolia must strictly operate within the governing legal and regulatory framework. All legal entities are obliged to adhere to these laws.

Key Legislation

Business activities are primarily governed by the following key laws and legal acts:

Visa type and process

Entering Mongolia

The Investment and Trade Agency provides foreign investors, entrepreneurs, and tourists with essential information and guidance regarding entry into Mongolia.

Visa Requirements

Foreign nationals traveling to Mongolia must obtain an appropriate visa category based on their purpose of visit, including:

Business Visa (B)
Investor Visa (T)
Work Visa (HG)

Visas can be applied for through Mongolian diplomatic missions abroad or, where applicable, via the (e-visa) platform.

Investtor Visas

The following visa types are issued to investors and business representatives:

Investor Visa (T): Issued specifically for making investments in Mongolia.
Business Visa (B): Issued for business meetings, exploration, and market research.
Work Visa (HG): Issued for employment or holding managerial positions within a company.

How to Apply Visa

Applications can be submitted through:

Diplomatic missions of Mongolia abroad (Embassies and Consulates)
The official (e-visa) portal (where applicable)

Residence Permits

The Investment and Trade Agency assists foreign citizens and investors seeking long-term residence in Mongolia with key information and advisory services.

General Overview

A residence permit is an official authorization that permits a foreign national to legally reside, work, and conduct business in Mongolia for a designated period.

Permit Categories

Foreign nationals may apply for a residence permit based on the following grounds:

Investment purposes
Employment
Family reunification
Educational studies

Employing Foreign Workers

The Investment and Trade Agency provides guidance to business entities on legal requirements for hiring foreign personnel.

General Overview

Employing foreign nationals in Mongolia requires official authorization in compliance with relevant labor laws. Employers hiring foreign workers must obtain approval from the competent authorities and complete all mandatory registrations.

Key Requirements

Obtain an official work permit for employing foreign workers.
Establish a formal employment contract.
Demonstrate that the position cannot be filled by the local workforce.
Adhere to foreign labor quotas and ratios prescribed by law.

Business support services

Mongolia has several professional associations which provide crucial resources and support, uphold ethical and professional standards in addition to granting professional licenses. The key professional association to refer to in Mongolia to enhance market understanding, mitigate risks and obtain services of high ethical and professional standards are the following:

Mongolian Institute of Certified Professional Accountants (MONICPA)
MONICPA is a self-governing, national professional NGO whose operations include regulation of professional services including accounting and assurance; research and project implementation; accounting courses and qualifications; development of members. Furthermore, MONICPA is the only organization authorised to grant professional licenses to accountants.

Website: http://www.monicpa.mn/c/563188

Mongolian Bar Association (MBA)
The MBA is a professional NGO, whose members are all professionals operating businesses in the legal field, judges, prosecutors, advocates, notaries, and lawyers. Furthermore, MBA has the full authority to conduct bar exams, grant or revoke licenses to provide professional legal services, represent lawyers, and operate the Committee of Professional Responsibility. Therefore, when seeking legal services the MBA is the place to go to find qualified individuals or entities with professional and ethical standards.

Website: https://www.mglbar.mn/index

Mongolian Association of Certified Tax Consultants (MACTC)
MACTC is a professional NGO that operates to ensure tax compliance by developing professional tax consulting services that provide support for both the government and taxpayers. Furthermore, it is the only authorised body to grant, extend and revoke professional tax consultancy licenses to individuals.

Website: https://en.cpta.mn/

Mongolian Institute of Certified Appraisers (MICA)
MICA is a professional NGO that serves its members, established by appraisers and appraisal service providers with the goal of protecting their interests and elevating their skills, protecting customers’ rights and regulating the appraisal service standards.

Website: http://www.mica.mn/c/594575

Association of Mongolian Advocates (AMA)
AMA is a professional NGO that represents advocates and organisations providing advocacy services, serving as a networking platform, ensuring the development of professionals, and promoting a code of ethics. AMA is authorized to conduct advocates exams and provide advocacy licenses to lawyers.

Website: https://www.ama.org.mn/

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What is Tariff Support?

Tariff support refers to government policies designed to lower operational costs for investors and businesses through tax and customs duty reductions, exemptions, and preferential rates for energy and utility services.

Key Tariff Support Incentives for Investors

Tax and Customs Duty Exemptions

Under the “Investment Law of Mongolia”:

Exemptions and reductions on Value-Added Tax (VAT)
Corporate Income Tax (CIT) and Customs Duties.

Stabilization of tax conditions through Investment Agreements for large-scale projects.

Free Economic Zones:

Tax exemptions for the first 5 years.

SMEs and Priority Sectors:

Customs duty and VAT exemptions

1.Targeted Import Duty Relief (project Phase)

The Government in specific sectors:

During the construction of manufacturing, energy and infrastructure facilities:

Customs duty exemptions on imported equipment during the construction phase.
Reduction of VAT rates down to 0%.

Target sectors:

Energy (or Energy Sector)
Railway (or Railway Infrastructure)
Processing / Manufacturing Plant
Innovation & High-Tech Manufacturing

Stabilization Mechanism (primary Incentive)

Qualified investors receive a “Stabilization Certificate”, guaranteeing stable tax rates and tariff terms for a legally fixed duration.

2.Energy and Infrastructure tariff Regulations

The Energy Regulatory Commission: Electricity and heating tariffs in Mongolia are determined by the Energy Regulatory Commission (ERC) based on legally mandated cost-reflective methodologies.

Differentiated tariff terms apply to specific consumers including major projects and targeted social groups.

General Policy Direction

Mongolia’s Policy: Non-discriminatory treatment of domestic and foreign investors.

Through tax and tariff incentives:

Manufacturing / Production
Exports
Infrastructure and key priority sectors

What is Non-Tariff Support?

Non-tariff support encompasses state policies and measures aimed at improving the business climate, safeguarding investment rights, and facilitating day-to-day operations beyond fiscal incentives.

Active Non-Tariff Incentives in Mongolia

(1) Legal Guarantees for Investment

Under the Investment Law:

Equal treatment of foreign and domestic investors
Absolute protection against unlawful expropriation
Choice of dispute resolution through Mongolian courts or international arbitration.

A key incentive designed to minimize investor risk.

(2) One-Stop Service Center (OSSC)

Government support includes:

One-stop service for permits, registration and information provided through Invest Mongolia (Investment and Trade Agency)
One-stop service access to permits, business registration and information

Key Advantages:

Time-saving
Simplifies the process of starting a business

(3) Simplified licensing and business registration

In recent years:

reduction of Permits and Licenses
Certain business activities:
transition to Notification-Only System
Digitalization (e-Mongolia)

Outcome:

Lower Entry Barriers to the Market

(4) Stabilization Certificate (With Secondary Non-Tariff Incentives

Although tax-related:

P rotection against legislative and policy changes
for a specified period
guarantee of stable regulatory conditions

This ensures a stable policy environment.

(5) Land Access and Infrastructure Support

Government Support:

Land Use Rights: Granting land use rights
Industrial & Free Zones: Establishing industrial and free economic zones
Infrastructure: Financing or co-developing infrastructure (roads, electricity, water)

Specifically: