Starting a business in Mongolia: foreigner's guide (2026)

Private foreign investors may hold up to 100% of a Mongolian company in most sectors with no general equity cap. Entities where foreign investors collectively hold 25% or more are classified as 'foreign-invested entities' (FIEs) and subject to additional requirements.

Each foreign shareholder in an FIE must contribute a minimum of USD 100,000 in cash or in-kind at the time of registration. A 2025 draft law circulated for public comment proposes to eliminate this fixed threshold and replace it with sector-based government criteria.

The process involves: (1) name reservation at GASR/LERO (10-business-day hold); (2) opening a corporate bank account and depositing required capital; (3) submitting the company charter, shareholder IDs, and registration fee receipt to LERO (decision within 5–10 business days); (4) post-registration at the tax authority and District Social Insurance Department; (5) obtaining a company seal. End-to-end the process typically takes about one month.

Foreign state-owned entities — where a foreign sovereign directly or indirectly owns more than 50% — must obtain prior approval from the Ministry of Economy and Development before acquiring 33% or more of a Mongolian entity operating in mining, banking and finance, or publishing/media/communications.

Foreign legal entities and FIEs cannot own land in Mongolia; they may only obtain land-use or land-possession rights under contract. In 2024, Parliament revoked a provision that had given FIEs a statutory path to possession rights, tightening access further.

The 2021 Law on Banking caps any single beneficial owner and related parties at 20% ownership of an individual bank or combination of banks. Foreign ownership and operational control are also restricted in the energy and transportation sectors.