News: Registration of company in Mongolia

Such characteristics as the land of nomads, the country of mountains, steppes and sand dunes are traditionally used in the description of the existing image of Mongolia during many centuries. At the same time it should be noted that the present Republic of Mongolia and its capital Ulan Bator has considerably changed both economically and culturally. And sunny country situated in the center of Asia is becoming more interesting for tourists and businessmen.

The country shares northern border with Russia, and eastern, southern and western - with China. The state has no outlet to the sea. Total area is more than 1,5 million km2.

According to its state structure, Mongolia is a parliamentary republic. In accordance with its administrative arrangement, it is divided into 21 aimaks, which consists of 329 somons. The population of Mongolia is approximately 3.1 million people.

The country has an observer status in many CIS structures and is the UN member. Mongolia is also member of the WTO, and formed free economic zone (Altanbulag) on the border with Russia.

The official language in the country is Mongolian, and written language is the Cyrillic alphabet.

The main religion is Buddhism.

The climate of Mongolia is sharply continental, the winters are harsh and the summers are hot and dry. Due to the great number of sunny days in the year (about 250), the state is often called the "country of the blue sky." The famous Gobi desert in Mongolia is tentatively divided into three zones (by color) - Black, Red and Yellow. Having sufficiently large territory covered by desert, there is no shortage of drinking water in the country. The most full-flowing river is Selenga.

If you decide to start your business in Mongolia, the following information will be useful for you.

Legislation of Mongolia is based on civil law.

Forms of doing business.

It is possible to register or buy an offshore company in Mongolia in the form of:
- Limited Liability Company (LLC);
- Representative office.

Registration of LLC offshore companies in Mongolia. Peculiarities.

• Minimum number of shareholders is one either natural or legal person.
• The company can operate in the presence of at least one director. He should be a natural person.
• Foreign person to be appointed to the position of Director-General shall have a residence permit. Otherwise, it is necessary to appoint a resident of Mongolia.
• Registration office is required.
  Minimum share capital shall be $ 100,000.
• It is necessary to give further effect to the certificate of registration of offshore company in Mongolia annually.
• It is better not to use the words "Mongolia" and "Ulan Bator" in the name of the company, regardless of whether the company in Mongolia is established or re-registered. It is possible to provide several options when registering names.
• For successful completion of the registration process it is also needed to provide data about participants, types of activities of the company, select bank for opening an account.
• Legal address shall be put on the single Register of Mongolia.
• Registration of offshore company in Mongolia can take place without direct participation of the founders by power of attorney.

Registration of representative office in Mongolia. Main provisions.

• Pursuit of separate economic activities is prohibited. The company can only represent the interests. In practice, branches are not registered in Mongolia.
• For successful completion of the registration procedure it is necessary to submit constituent documents, select bank and announce number and types of accounts to be opened, etc. The documents should be notarized and translated into Mongolian.
• Legal address shall be put on the single Register in Mongolia.

Registration of LLC or representative office takes usually about one month.

Accounts of the company in Mongolia can be opened in rubles, tugriks, euros and dollars in the Mongolian banks.

Taxes in Mongolia.

Income tax equals to 10%. But subject to certain conditions the following is also possible:

- Exemption from paying taxes for the period of 10 years;

- Additional tax exemption for another 5 years up to 50% (for companies engaged in telecommunications, construction, maintenance of means of transmission of electricity and heating energy)

Bookkeeping in Mongolia.

Offshore company in Mongolia shall maintain accounting records and submit annual report.

After registration it is necessary to promptly submit primary statistical and tax reporting.

Registration of business in Mongolia will become a reliable start of your international business. We will provide comprehensive assistance in this matter.