Business entities in Mongolia in 2024

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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 Glance LLC JSC Rep Office
How long to set the company up? 6 weeks 8 weeks 6 weeks
How long to open company bank account? 4 weeks 4 weeks 4 weeks
Minimum share capital required at incorporation US$100,000 US$200,000 N/A
Allowed to sign sales contracts with local Clients? Yes Yes No
Allowed to invoice Mongolian Clients? Yes Yes No
Allowed to invoice Mongolian Clients? Yes Yes No
Corporate tax payable in Mongolia 25% 25% N/A
Corporate bank account Khan Bank Xac Bank Trade & Development Bank
Can rent office in Mongolia? Yes Yes Yes
Tenancy agreement required before incorporation? No No No
Allowed to import raw materials? Yes Yes No
Allowed to export goods? Yes Yes No
Can the entity hire expatriate staff in Mongolia? Yes Yes Yes
Do you visit Mongolia for company incorporation? No No No
Resident director/manager required? No No N/A
Resident shareholder required? No No Yes
Minimum number of directors 1 9 N/A
Minimum number of shareholders 1 2 N/A
Individual shareholders allowed? Yes Yes N/A
Corporate shareholders allowed? Yes Yes N/A
Corporate director(s) allowed? No No N/A
Public register of shareholders and directors Yes Yes Yes
Statutory audit required? Yes Yes Yes
Annual tax return to be submitted? Yes Yes Yes
Total business setup costs in Year 1 US$20,750 US$16,600 US$14,050
Subsequent annual costs (incl. accounting & tax) US$6,985 US$8,460 US$6,460
Draft invoice View invoice PDF View invoice PDF View invoice PDF

Contact us

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