Registering a company in Mongolia is a promising idea for an international business. This agricultural country, with its capital city of Ulaanbaatar, attracts many foreign investors with its favorable conditions for commercial activities. It is much cheaper to open a company in Mongolia compared to European countries. Prices for rent, utilities, transportation, labor, and products are lower here. As a result, the state presents excellent opportunities for new markets.
Advantages of opening a company in Mongolia
Registering a company in Mongolia has many positive aspects:
- the stable political situation in the state;
- availability of 4 free economic zones;
- possibility of remote registration of holding, a subsidiary company in Mongolia;
- favorable conditions and government support to attract foreign investments:
- loyal tax system;
- absence of double taxation;
- opportunity to get citizenship, residence permit
It takes little time to register a business in Mongolia. A significant advantage of this jurisdiction is a wide range of promising activities: light industry, insurance, real estate privatization, IT technology, and much more.
The primary forms of doing business in Mongolia
Registration of a company in Mongolia most often takes place in these organizational and legal forms:
- A company with limited liability. The founder can be one or more individuals or legal entities. The highest governing body is the board of shareholders. Members of the board are responsible for the limits of their shares. They also appoint the executive body, which carries out the company's day-to-day management.
- Limited Liability Company with foreign investments. Its authorized capital shall be at least 100 thousand dollars or tugrik equivalent. Of them, at least 25 % must belong to the foreign investor.
- Joint-stock company. It can have an unlimited number of shareholders. Shareholders are not liable for the company's obligations but bear the risk of losses on their shares. If we talk about the management bodies, they are similar to the LLC. In addition to the meeting of shareholders, the management is carried out by the executive body or director.
A representative office is not considered a legal entity but represents another country's company and its interests.
Company registration in Mongolia: peculiarities of the procedure
If Mongolia appeals to you, it is possible to open a business here under certain conditions:
- the uniqueness of the name;
- opening accounts in a Mongolian bank;
- elaboration of statutory documents;
- availability of registered premises;
- regular filing of tax reports.
Legislation and regulation
It is possible to open a company in Mongolia, with branches in the free zone according to the particular Law on State Registration of Legal Entities. to Applyingspecialists is better to ensure everything is clear. Prifinance lawyers will advise you on how to open a business in Mongolia and assist you in preparation for registration. If you want, you can buy a ready-made company in Mongolia!
Central taxes of the country:
- corporate tax - 25%;
- Personal income taxPERSONAL INCOME TAX - 20 %;
- VAT - 10 %;
- on dividends - 10-20 %.
There are unique benefits for specific industries in the form of a reduction in the tax rate and exemption from taxation for a certain period. Also, in the state, there are agreements exempt from double taxation.
To open or buy a business in Mongolia: assistance from Prifinance
Need help registering or purchasing a company in Mongolia? Thanks to Prifinance lawyers, you will quickly become the owner of a profitable business abroad. Leave an application on our website or call us at the indicated numbers. We will help you through the stages of establishing a company!