Mongolia is Booming and Setting Up a Company Now is Valuable
Mongolia is a vast landlocked country. The mountains covered the northern regions while the south makes up the Gobi desert. With a population of three million people sparsely living in Mongolia, you will stumble upon traditional nomadic families. A Mongolia company registration now might be the best time for you.
Why Choose Mongolia
The Mongolians are still practising their traditional customs, although modernisation is prominent in the capital. At least thirty per cent of the population is nomadic or semi-nomadic. Mongolia is rich with mineral deposits of copper, coal, tin, tungsten and gold. The known economic activity in Mongolia is herding and agriculture, but mining minerals have also contributed to economic pillars in Mongolia.
Although deeply rooted in traditional customs and nomadic living, Mongolia has a high rate of literacy. The English language is available and can learn in all secondary schools. Hence Mongolian youths and graduates are fluent in the global business language. Hiring local Mongolian will be an easy process. The corporate income tax regime in Mongolia uses a progressive rate scale, varying from 10% to 25 %. If your business requires commuting in and out of Mongolia, the transportation system are reliable. You might get an adventure or two with some areas where there are only gravel roads. Otherwise, Mongolia is undergoing massive road construction projects.
Company Registration Process
In Mongolia, the following are the types of company you can choose to register. Each company type is briefly explained.
- Representative Office (RO) – Foreign-owned company may set up a company as a representative office, and the headquarters are responsible for their RO.
- Wholly Foreign-Owned Enterprise (WFOE) – This entity is a well-known company set up by external parties. An individual or corporate entities can register it. A WFOE is a limited liability company managed by foreign nationals and capitalised with foreign funding.
- Joint Venture (JV) – A JV is partnership LLC between foreign investors and Mongolian entrepreneur.
The steps involved in Mongolia company registration are as the following:
- Verify and reserve a unique company name with the Legal Entities Registration Office (LERO). You should do it in person.
- Upon approval, LERO will issue a name reservation slip and bank account permission slip.
- Using the bank account permission slip, the entrepreneur must open a temporary bank account to instruct the bank to make payment to the Tax Authority account.
- Pay the registration fee.
- Register the company and as a taxpayer.
- Upon successful registration, LERO will publish a notice of company formation. LERO will also send relevant documents to the tax department relative to the company’s location.
- Once the newly formed company has employees, the company must apply the social security code.
- LERO will then request the company to make a seal through one of the registered seal makers.
Assistance From The Start
Mongolia’s rapid economic growth could spell immense business potential for you and your business. But, without the right support to register a company, you might feel drained thinking about it. Contact us, and our professional team will sort you out every step of your Mongolia company registration.