Setting Up a Company in Mongolia
Mongolia is one of the world's most resource-rich frontier economies — copper, coal, gold and rare earths underpin its growth. Here is how foreign investors incorporate and access the mining sector in 2026.
Mongolia is a landlocked economy between China and Russia with one of the world's highest concentrations of untapped mineral wealth — the Oyu Tolgoi copper-gold mine (Tier 1 global asset) and Tavan Tolgoi coal deposit anchor the economy. The Investment Law 2013 (as amended) guarantees investment stability, limits nationalisation and provides a legal framework for foreign investment across sectors.
Key facts for 2026
| Parameter | Detail |
|---|---|
| Corporate income tax | 10% (standard rate, one of Asia's lowest) |
| VAT | 10% (standard rate) |
| Foreign ownership | 100% for most sectors (strategic sectors require government approval) |
| Mining royalty | 2.5–5% of sales value depending on mineral type |
| Investment stability agreement | Available for investments over MNT 10 billion (≈ USD 3 million) |
Corporate structures and strategic sector rules
The standard vehicle is a Limited Liability Company (LLC / ХХК) registered with the General Registration Authority. A Joint Stock Company (JSC / ХК) is used for larger enterprises or listed entities. Foreign investors can own 100% in most sectors. However, the Law on Prohibition of Mineral Resources and Strategic Assets imposes a strategic-sector screening for investments in mining, energy, telecommunications, finance and media where a single foreign investor would acquire 33%+ or multiple foreign investors would acquire 49%+ of a strategic company — requiring Parliamentary approval. This is a significant constraint for large mining M&A transactions.
Mining investment framework
Mining licences are issued by the Mineral Resources Authority of Mongolia (MRAM). Exploration licences are freely transferable; mining licences are non-transferable without MRAM approval. Mongolia levies a windfall tax on copper and gold when prices exceed defined thresholds. Foreign-owned mining companies pay the standard 10% CIT plus a 5% surtax, bringing effective mining CIT to approximately 25% including royalties. Investment Stability Agreements (ISAs) can lock in tax rates and government commitments for up to 30 years for qualifying projects.
The incorporation process
- Register an LLC with the General Registration Authority (GRA) — online or in-person; 1–3 business days.
- Register with the General Department of Taxation for CIT and VAT.
- For mining: obtain exploration or mining licences from MRAM.
- For strategic-sector M&A: notify and obtain approval from the Government Implementing Agency (Cabinet Secretariat).
- Open a corporate bank account at a Mongolian commercial bank.
Frequently asked questions
Can a foreigner own 100% of a Mongolian company?
Yes, for most sectors. Strategic sectors (mining, energy, telecoms, finance, media) require government or Parliamentary approval for foreign acquisitions above defined thresholds.
What is the corporate tax rate in Mongolia?
10% standard rate — one of Asia's lowest. Mining companies pay an additional 5% surtax. Royalties of 2.5–5% on mineral sales value apply on top of CIT.
What is an Investment Stability Agreement?
A bilateral contract between the investor and the Mongolian government that locks in agreed tax rates and regulatory terms for up to 30 years. Available for investments above MNT 10 billion (≈ USD 3 million).
Official sources
- Invest Mongolia Agency
- General Registration Authority (GRA)
- Mineral Resources Authority of Mongolia (MRAM)
This guide is general information prepared by ARM Management and is current as at July 2026. It is not legal advice. Confirm with Invest Mongolia or a qualified advisor before incorporating.