Business entities in Mongolia in 2023

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In Mongolia, most of our Clients prefer the limited liability company (LLC). However, if our Clients wish, Healy Consultants will also assist with setting up the joint stock company (JSC) or the representative office. For more details, kindly refer to the information and table below:

Limited liability company

business entities setup in Mongolia

  • This Mongolia business setup can be can be registered by 1 shareholder, who may be a non-resident foreign individual or company. The company must also appoint 1 individual as its director. Like the shareholder, this individual may or may not be Mongolian resident or a Mongolian national;
  • It is mandatory for a shareholder (holding at least 25% stake in the company) to deposit at least US$100,000 into a Mongolian bank account prior to company setup.

Joint stock company

  • A JSC can be setup with at least 2 shareholders, who can be non-resident individuals or entities. Like an LLC, every foreign shareholder, with 25% stake will contribute US$100,000 to the company. A JSC must also appoint a board of directors, comprising of at least 9 members;
  • This Mongolia business setup is preferred when our Client plans to issue shares to the public. However, it is possible for a JSC to be operate as private entity and not list on the stock exchange.

Representative office

If our Client does not plan to carry out income generating activities in Mongolia, they may choose to register a representative office for their entity. However, our Client will be required to appoint an authorized agent who will act on behalf of the entity in Mongolia.

Summary at a GlanceLLCJSCRep Office
How long to set the company up?6 weeks8 weeks6 weeks
How long to open company bank account? 4 weeks 4 weeks 4 weeks
Minimum share capital required at incorporationUS$100,000US$200,000N/A
Allowed to sign sales contracts with local Clients?YesYesNo
Allowed to invoice Mongolian Clients?YesYesNo
Allowed to invoice Mongolian Clients?YesYesNo
Corporate tax payable in Mongolia25%25%N/A
Corporate bank accountKhan BankXac BankTrade & Development Bank
Can rent office in Mongolia?YesYesYes
Tenancy agreement required before incorporation?NoNoNo
Allowed to import raw materials?YesYesNo
Allowed to export goods?YesYesNo
Can the entity hire expatriate staff in Mongolia?YesYesYes
Do you visit Mongolia for company incorporation?NoNoNo
Resident director/manager required?NoNoN/A
Resident shareholder required?NoNoYes
Minimum number of directors19N/A
Minimum number of shareholders12N/A
Individual shareholders allowed?YesYesN/A
Corporate shareholders allowed?YesYesN/A
Corporate director(s) allowed?NoNoN/A
Public register of shareholders and directorsYesYesYes
Statutory audit required?YesYesYes
Annual tax return to be submitted?YesYesYes
Total business setup costs in Year 1US$20,750US$16,600US$14,050
Subsequent annual costs (incl. accounting & tax)US$6,985US$8,460US$6,460
Draft invoiceView invoice PDFView invoice PDFView invoice PDF

Contact us

For additional information on our business setup services in Mongolia, please contact our in-house country expert, , directly: