Author: Nyam

Categories
Labor relations

EMPLOYMENT LICENSE

  1. Official letter from the enterprise inviting foreign workers and specialists with “HG” visas from abroad within 10 working days after entering the country and filling out the Form 2 in detail “Requesting a work permit”
  2. Receipt of payment for service fee (MNT 22,500 / per person, Treasury, LSWA account 100900017002)
  3. Receipt of payment for work place (640000 MNT/ per person / month, Treasury, account 100900037010), Note: The relevant fee will be paid to the specialist after checking the materials. (From January 1, 2020, the salary will be changed to MNT 840,000 / per person / month)
  4. Receipt of price for ‘Work permit in Mongolia’ (3000 MNT / per person, Treasury, Department of Social Welfare and Labor 100900017002), 1 photocopy of the certificate of employment (requirement: size 3 × 4 cm, blue background, last Must be taken within 6 months, clear)
  5. A copy of the state registration certificate of the enterprise
  6. Certificate of license and a copy of its annex
  7. A copy of the government if exempted from quota by government decree
  8. A copy of the foreigner’s passport and a stamped page on the HG visa
  9. Conclusion of medical examination in accordance with the form approved by the joint order of the Minister of Health and Labor, the conclusion should be legible and stamped)

Download link: Permission (hudulmur-halamj.gov.mn)

Categories
Labor relations

EXTENSION OF WORK PERMIT

  1. Official letter completed in accordance with Form 3, detailing the need for the enterprise to continue to employ foreign workers and specialists
  2. Receipt of payment of service fee (MNT 22,500 / per person, Treasury, Social Welfare Department 100900017002 account)
  3. Receipt of payment for the extended period of work (640,000 MNT / per person / month, Treasury, FES account 100900037010), Note: The relevant fee will be paid to the specialist after checking the materials. (From January 1, 2020, the salary will be changed to MNT 840,000 / per person / month)
  4. ‘Work permit in Mongolia’ will be renewed. (3000 MNT / per person, Treasury, Social Welfare Department 100900017002 account). If the renewal period is over, the license will be reissued. 1 copy of the ID card (Requirement: size 3 × 4 cm; blue background, taken within the last 6 months, clear)
  5. A copy of the state registration certificate of the enterprise
  6. Certificate of license and a copy of its annex
  7. Copy of residence permit
  8. A copy of the government if exempted from quota by government decree
  9. Social Insurance Forms ND-7 and ND-8 for the last month confirming the number of employees who pay social insurance premiums in the organization
  10. Employment contract concluded with a foreign legal entity and its translation into Mongolian (Requirements: Employment contract must be extended, certified by a translation agency)
  11. Copy of foreign passport (with HG visa stamp)
  12. If the length of service in Mongolia is more than 6 months, repeat the HIV test, and if it is more than 1 year, repeat the 5 types of tests. cover letter.

Download link to the form – Extension (hudulmur-halamj.gov.mn)

  1. Reference from the Ministry and employment sector / Note: Applicable only to the Education sector /
Categories
Labor relations

WITHDRAW OF WORK PERMIT

  1. Official letter from the enterprise filling out the Form-4 “On deregistration of the GEF”
  2. Receipt of payment of service fee (12000 MNT / per person, Treasury, Social Welfare Department 100900017002 account)
  3. A copy of the state registration certificate of the enterprise
  4. Copied on the front of the A4 size paper with the passport of the foreign citizen and the page with the stamp of “HG” visa, the original copy of the “Work permit issued in Mongolia” issued by the Social Welfare Department and the “Residence permit issued in Mongolia” issued by the Customs Office must be accompanied by an extended copy of
  5. Other materials as needed
Categories
Investment

Tax related support for investors

Investment agreement An investment of more than 500 billion MNT
Stabilization certificate VAT, Corporate income tax, Custom Duty, Mineral resource royalty
Free economic zones Exempt from taxes for the first 5 years
Small and medium enterprises  

 

Imported machinery and equipment may be exempted from customs duties during the construction period and value-added tax may be imposed at a rate of up to ‘0’ in the following cases:

  • Construction of a factories that produce oil, construction materials, products for export (export products) and those that engage agricultural processing activities;
  • Construction of factories that engage in production of nano, bio and innovative technologies;
  • Construction of power plants and railways.

 

 

Categories
Investment

Non-tax related support for investors

Non-tax related support for investors can be provided in the following ways. Those include:

  1. Lease a land under contractual terms up to 60 years. Extend the contract up to 40 years under the same terms once after the end of the first contractual term;
  2. To support investors operating in non-free zones, industrial and technology parks, and to provide registration and inspection procedures on concessional basis;
  3. To support the implementation of infrastructure, industrial, scientific and educational development projects, increase the number and quantity of foreign labor and specialists, exempt from job fees, and issue relevant permits on a concessional basis;
  4. Support the financing of innovation projects and provide guarantees for financing the production of export-oriented innovative products;;
  5. Issuance of multiple entry visas and permanent residence permits in accordance to the relevant Laws to foreign investors who have invested in Mongolia;
  6. Other promotions specified in the applicable Laws.
Categories
Finance and Tax

Registration of Representative office

  • Registration of taxpayers, making amendments and removal.
  • An entity covered by Article 6 of the Corporate Income Tax Law shall submit the following documents 10 days prior to the commencement of operations and submit an application for registration as a taxpayer to the tax administration electronically or on paper:
  • An application form for taxpayer registration
  • Resolution of a foreign business entity establishing a representative office in Mongolia, stating the operational areas, duration, name of management team and number of employees;
  • Tax-resident certificate
  • Documents proving the registration of the parent company as a legal entity /copy /, copy of company charter;
  • A copy of the agreement concluded with a Mongolian entity proving the income source is originated from Mongolia
  • Evidence of address and location of the representative office
  • Resolution and power of attorney appointing the head of the representative office;
  • Copies of the application form and documents of the representative office /if the management is a Mongolian citizen, a copy of the ID card is required, if the management if foreign citizen,  a temporary ID card registered with the Foreign Citizenship Office and a copy of the passport is required/;
  • Beginning financial statement of Representative office
Categories
License to provide consulting services for roads and road facilities

Required materials

  1. Applicant information
  2. Application for the related type of work involved
  3. Management information
  4. Engineer and technician information
  5. List of machinery and equipment
  6. Production base and site information
  7. Once the application has been received, the Working Group may request other documents during the review process.
  8. Equipment and tools must meet the technological components, quantity and use requirements for the work, and at least 60% of the total machinery and equipment shall be the asset of the applicant.

 

An application is reviewed and resolved within 21 working days from the date of receipt of the documents from the in accordance with Article 12 of the Law on Licensing of Business Activities.

Categories
Finance and Tax

To register a legal entity registered in the state registry as a taxpayer

  1. Filling of the taxpayer registration form (Form TB-01 for corporates and TB-02 for other organizations)
  2. Copy of certificate of registration
  3. Charter of a legal entity
  4. Founder’s application form, copies of ID card
  5. Bank account statement of the legal entity
  6. Management application form and copy of ID card
  7. Renting agreement (if the office is rent basis)
Categories
Finance and Tax

Tax percentage and discount

20.1. In accordance with Articles 18.2, 18.3, 18.4 and 18.5 of this Law, if the taxable annual income is between MNT 0-6 billion, the rate of 10 percent shall be imposed whereas if the taxable income is above MNT 6 billion, the tax would be calculated as MNT 600 milliont plus 25 percent on any exceeding amount.

20.2. The following taxable income of a taxpayer shall be taxed at the following percentages:

20.2.1. In the income specified in 18.6.1, 18.6.2, 18.6.3, 18.6.7 and 18.7 of this law

  • fee income 10%
  • dividend income 10%
  • interest income 10%
  • 10 percent;
  • proceeds from the sale and transfer of immovable property at 2 percent;
  •  real estate tax 0.6-1%

20.2.3. In the income specified in 18.6.5 of this law – 40 percent is imposed on winnings from paid games, and lotteries;

20.2.4. In the income specified in Articles 18.6.6 and 18.6.8 of this Law

– 20 percent on the profit transferred from the representative office to its parent in the given tax year;

– 5 percent on the interest income of Mongolian taxpayer issued foreign and domestic securities being traded in the primary and secondary markets.

20.2.7. Notwithstanding the provisions of Article 20.1 of this Law, earned taxable income of up to MNT 300 million per year specified in Articles 18.2, 18.3, 18.4 and 18.5 of this Law.  1 percent on the taxable income of a taxpayer operating in sectors other than as specified in clauses of 22.1.1, 22.1.2, 22.1.3, and 5 percent of the income from the sale of intellectual property rights.

– Royalties 2.5-5% on mineral resource reserve use

20.3.  In the case of a stabilization certificate holder, a tax shall be imposed at a stabilized rate and rate during the validity period of the stabilization certificate.

Categories
Labor force license

Documents to be submitted when applying for a license:

  1. When applying for a work permit in Mongolia, a document describing the demand for foreign labor, scope, duration, characteristics of the labor force, place of residence, professional skills, experience and competencies must be submitted.
  2. Notarized copy of legal entity certificate of registration and certificate of foreign invested legal entity.
  3. Labor contract concluded with a foreign legal entity;
  4. Copy of foreign labor passport
  5. Copy of foreign labor technical certificate
  6. Certificate of employment

Application period: 21 working days, in case of emergency situations occured, the permit will be extended by 14 days

The work permit is valid for a maximum of 1 year and can be extended for a longer period.

Categories
Mineral mining license

Documents required to apply for a mining license:

  1. Application (Form K-4)
  2. Mongolian Taxpayer Certificate (Tax Office)
  3. Copy of state registration and certificate of foreign invested company (notarized)
  4. Location of each exploration area and location of the remaining exploration area, corner coordinates and boundary map 2 copies.
  5. Proof of payment for the specified service (original receipt)
  6. Minutes of the Minerals Committee meeting and decisions of the state administrative body that reports on the results of exploration work shall be discussed and approved.
  7. Evidence of fulfillment of obligations under the environmental protection plan during the exploration work.
  8. Exploration license, annex (original)
  9. Decision of the organization or official to conduct the tender for the exploration area funded by the state budget.
  10. Environmental Impact Assessment Report
Categories
Mineral exploration license

Documentation required to transfer an exploration license:

  1. Exploration license transfer application (Form K-6)
  2. Evidence of occurrence in the circumstances specified in Articles 49.1 and 49.2 of the Minerals Law.

(49.1- If a legal entity holding an exploration and mining license is re-established in accordance with the Civil Law, the Company Law, and the Partnership Law, the newly established right receiver and the related company may transfer the license to that company.

49.2. An exploration license holder may transfer the license to the person authorized to hold the license by providing evidence that the sold exploration and exploration materials and reports have been sold and taxes have been paid in accordance with the relevant legislation.)

  1. Transferred license, attachment (original)
  2. Description of the transferred and remaining area (Form K-10)
  3. Copy of the state registration certificate of the transferor and recipient legal entity  notarized)
  4. Evidence that the receiving legal entity recognizes the rights and obligations arising from the licensed assignment (Form K-7)
  5. Proof of payment for the specified service (original receipt)
  6. Reference from the Environmental Inspection Agency on mine rehabilitation.
  7. Financial documents confirming rehabilitation costs in the account.
  8. Corner coordinates, location and boundary map 2 copies.
Categories
Mineral exploration license

Documents required to renew an exploration license:

  1. Application for extension of exploration license (Form K-11)
  2. Exploration license, annex (original)
  3. Proof of work performed, annual license fee
  4. Document confirming the renewal of the environmental protection plan
  5. Evidence of completion of exploration at this stage
  6. Proof of payment for the specified service (original receipt)
Categories
Construction license

Documentation and materials required to apply for a license:

  • The applicant is a legal entity and compiles a state statistical certificate.
  • If the applicant is a citizen, a copy of the ID card is required.
  • Certified copy of graduation certificate of all engineers and technicians who meet the requirements of the relevant type of work and certificate of professional engineering degree;
  • For buildings more than 30 meters high, more than 60 meters long, and more than 16 floors, the construction work and construction design of water and electricity supply sources shall be decided by the meeting of the Ministry of Construction. A copy of the architectural design shall be attached.
  • Tax payer

 Documentation required to apply for a license to produce construction materials (as an in addition to the above documents):

  • Copy of production technical manual registration.
  • Copy of product certificate (for companies)
  • Product test certificate (for companies)
  • Construction permits are issued for a period of five years and can be extended for the same period.

When renewing a license, the license holder must enter the information of the engineer and technician in electronic form in the database.  The license holder shall register the construction project report of the legal entity in the database.

A foreign legal entity shall attach a certified copy of the translation of the license issued by the competent authority of home country when applying for a license.

Deadline for application for a permit:

Within 21 working days after receipt of the application for permission of the legal entity.  In case of emergency situation occurs, the permit will be extended by 14 days.

If permission is denied, a written response shall be provided stating the reasons

Application form (clearly indicating the scope and timing of production and service activities)

Categories
Obtain a residence permit

Procedure for obtaining a residence permit

  1. Applying for the appropriate visa category to Immigration Agency of Mongolia
  2. Apply for a visa at a Mongolian embassy or consulate abroad or at a Mongolian border crossing.
  3. Must register within 7 business days after arriving in Mongolia.
  4. Must apply for residence permit at the Immigration agency of Mongolia within 21 days after entry