Notwithstanding, doing business in Mongolia is an interesting test for business people who attempt to survey real business challenges and settle on choices dependent on the real world, instead of depending on insight. Huge mineral reserves, agricultural resources, and proximity to the vast Asian market make Mongolia an attractive destination for medium and long-term foreign direct investment (FDI).
Mongolia is proceeding to build up its arrangement of business law, tax assessment, banking and outer connections with the worldwide business local area and above all the market economy. Plentiful common asset abundance and agrarian creation make Mongolia’s populace one of the possibly most extravagant nations per capita in the area. Nonetheless, changing over this potential into reality requires numerous basic elements to work in show. Attracting and protecting investors is among the most critical of these factors.
Economy Profile of Mongolia
Doing Business 2021 Indicators (in order of appearance in the menu). This guide covers all aspects of running a business and investing in Mongolia, such as:
Easy doing business in Mongolia
Situated strategically between Russia and China, Mongolia not only offers domestically a growing cosmopolitan market but also presents tremendous export opportunities for foreign investors in a number of sectors.
| Region: | East Asia & Pacific |
| Income Category: | Lower middle income |
| Population: | 3,296,866 (As of June 10, 2020) |
| Capital city: | Ulaanbaatar |
| GNI Per Capita (US$) | 3,580 |
| GDP | 14 billion (2019) 0.02 percent of the world economy |
The comparative advantages of doing business in Mongolia:
- Abundant but untapped natural resources
- Vast land and pasture, a large number of livestock
- Adjacent to the huge markets of the two largest countries, Russia and China, they have good relations with each other
- Proximity to fast-growing markets in the Asia-Pacific region
- In terms of human resources, Mongolia is a relatively healthy, well-educated young country
- Pursue an open economic policy
Developing intrigued at the worldwide advertise in biologically immaculate items places Mongolia in a special competitive position in segments such as nourishment preparing (in specific meat preparing), farming, eco-tourism among others. At the same time, a number of conventional” segments moreover have exceptionally solid competitive highlights. They incorporate oil investigation, coal generation, gold mining & gold refining, uncommon soil mining, calfskin articles of clothing, cashmere & camel fleece, articles of clothing.
The consideration is underway to privatize most significant government enterprises and it offers major opportunities for foreign investors in sectors such as energy, fuel export and import, telecom, solar energy, wind turbines, hydroelectric schemes.
To date, Mongolia has established “Foreign Investment Protection and Promotion Agreements” with 43 countries, and has established double taxation agreements with 26 countries.
The government will continue to explore ways to diversify the economy, including focusing on locally produced equipment and materials for major projects, as well as focusing on new infrastructure projects and the expansion of the agricultural sector. In 2013, the Mongolian government passed a new investment law, which replaced the 1993 investment law and the strategic sector law. According to the law, a foreign investor is defined as “a corporate entity with a total share capital of 100,000 USD or more.
The World Economic Forum said that the biggest obstacle to business in Mongolia is the inefficiency of the government bureaucracy, which is only 15.5%. Other major obstacles are the relatively uneducated labor force, corruption and insufficient infrastructure, which are 13%, 12.8% and 11.5% respectively.
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A newly established investment promotion agency, Mongolia Business, has recently released an investment guide doing business in Mongolia. This comprehensive guide for foreign investors provides useful information on doing business in Mongolia including visa requirements, company registration, taxation, labor and trade-related laws and regulations etc. We hope this sheet will help anyone who are interested in and/or planning to start their businesses in Mongolia.
Take your trade to the another level. Investigate openings to develop your impression in Mongolia with the assistance of our services. If you want to doing business in Mongolia, please contact us
