High investment level requirements affecting UK investors/exporters to Mongolia
in MongoliaTrade barrier summary
For an overseas business to start business operations in Mongolia, it needs to be incorporated either as a business entity with foreign investment (BEFI) or as a representative office. A BEFI must have at least 25% foreign equity and a minimum contribution of $100,000 US Dollars. This can be costly for overseas businesses, especially small to mid-sized businesses. A representative office does not require a minimum foreign equity, however, it is not able to earn revenue from its activities in Mongolia. This is not aligned with investment law states that all investors in Mongolia, without any reference to their nationality, have national treatment.
Additionally, while overseas investors can obtain land rights (excluding for mining exploration and extraction licenses), these last for five years, with a one-time five year renewal. This restriction does not apply to Mongolian investors.
Sectors affected
- Financial and professional services
- Mining
- Energy
Resolved
No
Date reported
27 November 2019
Last updated
18 December 2020
Public ID
PID-89N8PG
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