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Mongolia Company Formation

Updated:2018-10-24 15:55:44    Source:www.tannet-group.comViews:46

Mongolia company registration is essential for doing business in the up-and-coming market of Mongolia. Mongolia is average developed country of East and Central Asia. Without a locally registered company in Mongolia you will not be able to operate in country as efficiently as those actually located here. The correct initial set up of your company in Mongolia will allow you to begin fully operating without the worries of encountering problems in the future due to improper registration.

Types of Business Entities in Mongolia
Mongolia is average developed country of East and Central Asia. There are several of opportunities to set up company in Mongolia. If you look for making any such ventures, you need first company registration in Mongolia that help you to legally establish your company anywhere in the country.

1. Limited liability company;
2. Joint stock company;
3. Non-governmental organization;
4. Representative Office.

Requirements on Mongolian Limited Liability Company
A LLC is formed on the basis of a charter and a decision of its founders. Initial capital is provided by contributions from shareholders and may take the form of cash or other property and property rights assessed in their monetary equivalent.

1. Company name
A limited liability company shall have a name that includes the words “limited liability company” or the abbreviation “XXK”.

2. Office location
A company’s principal place of business and postal address shall be determined by the place where its head office is located. The company shall inform the State Registration Agency of any change in the address of its principal place of business.

3. Directors and shareholders
There is no restriction regarding appointment of foreign director or local director, also no restriction in terms of number of shareholders. If there are board of directors, minimum number of directors must be three. Under corporate law of Mongolia, limited liability company is not required to have board of directors unless shareholders decide to have so.

Company Registration Process
The registration of a newly formed foreign-invested company (a company with at least 25% foreign ownership) in Mongolia takes place at the Legal Entity Registration Office of the State Registration Office (SRO).

The first step in forming a new company in Mongolia is reserving a name with SRO. This can be a difficult process; therefore we suggest clients submit a list of four to five alternative names.  Once SRO has granted name approval, the bank account in the company’s name at a reputable local bank will be opened. The required capital fund of minimum USD100,000 will be deposited into this account. The capital fund must remain in the account until registration has been completed.

Once registration completes, SRO will issue certificate that must be renewed annually in order to maintain compliance with the Mongolian Company Law. After the SRO certificate has been issued a company stamp will be made. The company stamp is crucial as all official company documents, from banking slips to financial statements, must be stamped with the company stamp.

Once the company stamp has been issued, the company is fully formed and is able to fully operate in Mongolia.

Foreign Invested Companies (FIC) that registered in Mongolia are governed by the Law on Foreign Invested Companies. Due to the complication of the company formation procedure in Mongolia, it is always a wise choice to appoint the right agent to do the job. Tannet has established close cooperation with local professional associates, we are able to provide with you a full range of services that you need to set up a business in Mongolia.

Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website www.tannet-group.net, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.

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