Success tips when doing business in Mongolia in 2023
Besides advising our Clients on how to set up a company in Oman, Healy Consultants offer the following advice to people who are interested in Oman corporate formation and business culture in the country.
- Mongolian society is steeped in custom. After establishing a company in Mongolia, it is important to learn about their customs. In order to conduct successful business in Mongolia, small gifts are often expected at business meetings and contract signings. A bottle of vodka is typically passed around in ceremonial fashion to mark completion of business agreements;
- Because Mongolian companies are not as well-versed with international business and Western law practices, we encourage our Clients to consistently use and sign contracts of service;
- Hiring reliable and experienced workers that speak fluent English is difficult. Small companies must compete with international mining companies for the small pool of qualified English speakers. Healy Consultants can assist our Clients in its Human Resource needs by placing advertisements in the major newspapers like the UB Post;
- The Mongolian holy month of Tsagaan Sar (White Month) usually falls around late January or February. This is a large festival similar to Chinese New Year. Be prepared for many Mongolian businesses to be closed or for normal operations to slow down for several days or weeks;
- When you are starting a business in Mongolia, it is important to find out what Mongolian registrations and licenses apply to your firm. This can be complex area; as local, state, territory and federal governments handle registration and licensing for various aspects of your business.
Interesting facts about Mongolia?
- The Mongolian empire started under Genghis Khan and lasted from 1206 to 1370. At its peak, it reached all the way to Eastern Europe and Southern China;
- Mongolia’s Gobi desert was once a sea. Many dinosaur fossils can still be found there. Roy Chapman Andrews was the first to discover to fossilized eggs there. His adventures later became the inspiration for Indian Jones;
- The Mongolian currency is called the tugrik. It was the best performing currency in 2010, rising 15% to the US dollar. After a couple months in circulation, the money begins to smell of Mongolia’s abundant mutton;
- Government regulations, red tape and bureaucracy hamper Mongolia companies. While the country has moved away from the Soviet-era, it still ranks poorly as a market economy. Mongolia ranks 75th, as a ‘moderately free’ economy, in the Heritage Foundation’s 2012 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment, and labour markets. Registration of a Mongolia company can take upwards of 8 weeks due to these restrictions;
- Animal herding is a major source of income for about 30% of Mongolian households. Sheep outnumber people 35 to 1. Many of these people still live a traditional nomadic lifestyle;
- Mongolia is the most sparsely populated independent country in the world. The 3.2 million population is spread out over an area the size of Great Britain, France, Germany and Italy combined. The population density is, therefore, about 1.7 people per square kilometer.