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Understand the Jurisdictions Setup Requirement Before Proceed Your Company Incorporate in Mongolia
Looking for reasons why should your company incorporate in Mongolia? Well, here are a few reasons to sway your opinion our way. Before the advancement of the Internet, Mongolia was sealed off from the world. However, the rise of the internet and social media served as the key that unlocked a sealed door, giving the world a chance to peek at this unique country.
Mongolia is strategically situated between Russia and China which creates great export opportunities for foreign investors in a number of sectors. Due to this, one can say that Mongolia is a huge launchpad for inventors to enter either Chinese or Russian markets.
Why Choose Mongolia?
Having a strategic location between Russia and China, Mongolia brings to the table a domestically growing market with amazing opportunities for export business. This attracts several foreign investors in various sectors. Mongolia can be pictured as a terrific gateway to two of the world’s economic powerhouses. Further, Mongolia is in a uniquely competitive position in certain sectors due to the global market’s growing interest in ecologically pure products. Food processing, agriculture, ecotourism are among the few.
On a different note, a few “traditional” sectors also possess strong competitive features. These include oil exploration, coal production, gold mining and refining, etc. Furthermore, with a well-educated population, Mongolia is a country that is open to new products, services, and ideas. Flexible regulations in regard to foreign ownership and low utility costs in the region are some of the key factors that attract foreign investors and opportunities. In regard to human resources, Mongolia is a vibrant nation with a relatively healthy and well-educated population.
How to Incorporate a Company in Mongolia
There are different types of corporations that can be registered in Mongolia.
1. Limited Liability Company (LLC)
- This only requires one shareholder and one director.
2. Joint Stock Company (JSC).
- This will require at least 2 shareholders, who may be a non-resident foreign individual.
- A board of directors, comprising at least 9 members, must also be appointed.
- For shareholder(s) holding more than 25% stake, will be required to contribute US$100,000 to the company.
- It is possible for a JSC to operate as a private entity and not list on the stock exchange.
3. Representative Office.
- This will require the appointment of an authorized agent who will act on behalf of the entity in Mongolia.
- This entity is used where there is no intention to carry out income generating activities in Mongolia.
For both the LLC and the JSC, shareholder(s) may be a non-resident foreign individual. The time frame for incorporation is 6 to 8 weeks. A period of 4 weeks is required to open a company bank account. The corporate tax payable in Mongolia is 25% and is required for an LLC and JSC. The minimum capital of US$100,000 is needed for every shareholder with 25% stake in the company.
Easier Company Registration Process with 3E Accounting
Due to its fast-growing economy, Mongolia is an ideal country to start a business. There are some flaws such as language barriers and inconsistent application of laws and regulations. However, the opportunity that Mongolia presents surpasses its irregularities. Further, you can enlist 3E Accounting’s incorporation services as the team can communicate well with Mongolian locals. We provide these services to simplify your integration into the economy in Mongolia, should you require any assistance or services. You may contact us today!