Foreign investors have free market access when investing in Mongolia. The Investment Law reflects the interests of foreign and domestic investors equally, creates a favorable environment for investment, and provides common legal guarantees to protect investors.
The Law on Investment provides the following rights to investors:
- To independently select objects, form, amount and area or region of investment and to make relevant investment decisions independently.
- To make an investment into one or more sectors, projects, productions and operations.
- To import goods and services from abroad within the framework of implementation of the invested projects and to export produced products, works, and services;
- To supply their foreign currency needs by purchasing or selling foreign currencies through both the banking and non-banking financial institutions registered in Mongolia.
- To dispose of their assets and to transfer to and receive from abroad their lawful profits and income.
- To manage or participate in the management of the invested business entity or to transfer their rights and obligations to other persons according to the relevant legislation.
- To make requests to their rights to use financing, loans, assistance, land, and natural resources and to have their requests resolved.
- To receive state services such as registering as a foreign invested entity equally.
- To grant other rights as specified in the legislation.
The Government has signaled a commitment to provide both tax and non-tax incentives to investors, where both foreign and local investors are treated equally, and to forbid any forced confiscation of assets under the Law on Investment.
Investors also have the right to freely transfer their assets, income, operating profits, and dividends abroad and to convert them freely into any foreign currency.
This means that foreign investors are able to move or convert their capital freely out of Mongolia, with the same ease that it was brought into the country.
In addition to their basic obligations, investors shall have the following common obligations when conduct their business operations under Mongolian law:
- To ensure that the products produced, works conducted, and services provided by them comply with both national and international standards.
- To maintain independent accounts and records in respect of the given business entity under international accounting standards.
- To provide the relevant tax authorities and other government authorities with any required information upon their request within the specified time to enable them carry out their activities.
- To conduct environmentally-friendly investment activities that respect consumer interests and support economic development.
- To pay all social and health insurance premiums of their staff following ass required by law.
- To improve the knowledge, experience, qualification, and skills of their employees, to focus on improvement of management methodologies, and to introduce sound principles of to respect the national heritage, customs, and traditions of the Mongolian people;
- To invest in industries under terms specified for the stabilization certificate holding legal entities as required under the “Law on Investment.”
- Any other obligations as may be specified under the applicable laws.