Categories
Mortgage Loan

Terms and conditions

Mortgage loan

Terms

Maximum limit

150,000,000 MNT

Down payment

Not less than 30% /If you mortgage your home as a down payment, you do not need to follow this percentage

Interest rate /annual/

6.00%

Loan term

Up to 360 months

Commision fee

1% of the loan amount issued up to MNT 1,500,000

Penalty interest rate

Equivalent to 20% of the base interest rate

Loan application fee

10,000 MNT

Credit recording enquiry fee

 Individual – 1,000 MNT Corporate – 1,000 MNT

* Effective percentage rate /annual/: 6.09%

Categories
Mortgage Loan

Eligibility Criteria

  • The main borrower/loan applicant has not previously been involved in a subsidized mortgage or rental housing program provided by the State;
Categories
Mortgage loan

Terms and conditions

Mortgage loan

Terms

MNT

USD

Maximum limit

 Up to 500.000.000 MNN or equivalent of USD

The loan analysis will be conducted using a standard form. The loan analysis will examine the borrower’s ability to repay the loan and assess the financial difficulties that the borrower may face. The total loan and interest payments of the borrower on a monthly basis shall not exceed 60% of debt-to-income.

Down payment

20%

If additional property is pledged the down payment amount can be decreased down to 0%

Interest rate

Down payment

 /Percentage of housing value /

 Additional pledged property or 20.0%-29.9% of the amount  30.0%-39.9% 40.0%-49.9% 50.0% or above Additional property pledged

20% or above

Interest rate/monthly/ 

 1.80% 1.70% 1.65% 1.60% 1.35% 1.00%
Interest rate/annually/ 21.6% 20.4% 19.8% 19.2% 16.2%

12.0%

Terms

 Up to 360 months

Up to 120 months

Service fee

1% of the loan amount /maximum MNT 1,500,000/ or equivalent currency

Penalty interest rate

Penalty interest rate /equivalent to 20% of base interest rate/ is added to the base interest rate

Fee for changing the original loan terms

1% of the loan balance /Maximum amount 1,000,000 MNT/

Loan application fee 

 10,000 MNT
Credit recording enquiry fee /during loan analysis procedure/

Individual – 1,000 MNT

Corporate – 1,000 MNT

* Effective percentage rate /annual/: MNT 20.40%-21.86%

Categories
Mortgage loan

Requirements

  • The borrower shall have been of steady employment at the current place of work for at least the previous 12 months or running their own business for at least 1 year
  • The total monthly loan repayment should be no more than 60% of the post-tax income 
  • No overdue loans or non-performing loans at any commercial bank or financial institution
Categories
Mortgage loan

Eligibility or required documents

  • Loan application form /attached /
  • Handwritten application (terms and condition, a purpose of loan should be clearly addressed)
  • A passport-sized photo
  • Notarized copy of ID;
  • Proof of down payment (proof of payment of at least 30% of the apartment, or proof of ability to pay or the deposited account statement)
  • Statement of savings account that covers the down payment or related evidence
  • Salary income statement by the employer, should indicate / whether the employee is able to work permanently in the future/
  • Notarized copy of social insurance book/ should include a page nomination of current position/ 
  • Residential reference letter from Governor of resident area (names of family members, registration number/
  • Original and copy of employment contract 
  • Documents proving household and business income
  • Documents proving business activities
  • Account statement / proof of income documents/
  • Original documents for the collateral (if it is the apartment, real estate certificates)
  • Detailed inquiries about the property from the Land Office and GASR
  • If you have a loan balance with other banks and NBFIs, loan agreement, loan account statement and loan and interest payment documents
  • Other required documents
Categories
Establish a company

To establish a limited liability company (LLC) in Mongolia

To establish a limited liability company (LLC) in Mongolia

Documentation required

Recommendation 
1

Application UB-03, UB-13 form

Download from http://burtgel.gov.mn/service/index.php/les-newlist/download
2

Obtaining a company name

The founder(s) or an authorized representative acting under a Power of Attorney shall obtain the name of a LLC from the State Registration Authority by physically visiting or by online request. 

https://www1.e-mongolia.mn/

The company name shall meet the following requirements:

• not duplicate other companies’ name; and

• be in Cyrillic letters.

When an LLC obtains its name, the founders shall establish the company within 30 days. Otherwise, the verification sheet on the company name will expire in 30 days. Extension will done with additional fee. 
3

Payment receipt of service fee
  • Name verification service fee is 10,000 MNT
  • Receipt deposited in Golomt Bank account 1401001101

 /Government Resolution No. 30230 of December 23, 2020/

  • Stamp fee is 44,000 MNT

 Receipt deposited in Golomt Bank account 1401002649

 / Article 15.1.1 of the Law on State Stamp Duty /

  • Service fee for issuing stamp and stamp control number 10,000 MNT

Receipt deposited in Golomt Bank account 1401001101

 / Annex to the Government Resolution №230 of 2020 /
4

Founder’s decision / resolution /,

 1 copy

 

 

When an LLC obtains its name, the founders shall establish the company within 30 days.

 As for the resolution of the founders:

 – Establishment of a company

 – Address, telephone, operational activities, / activities not required special license/

 – Share capital, face value and number of shares,

 – Selection of the CEO and provide his/her name, and registration number (the founder may also be the CEO)

 – The company’s charter must be approved as an appendix

– Decisions and resolutions shall be signed by the founders. 

If the founder of a company is a legal entity:

 – A decision (resolution) to establish a subsidiary (affiliate) company shall be made, signed and certified by the shareholders. A copy of the parent company’s certificate and charter shall be provided.

If the founder of a company is a foreign citizen:

A copy of the passport shall be provided if the authorized person, such as the founder, CEO or board member, is a foreign citizen.
5 Company charter /2 copies/ It shall reflect Article 16.2 of the Company Law and signed by the founders.  http://www.legalinfo.mn/law/details/310
6 Proof of asset Account statement with proof of funds in the account

There is no upper or lower limit on the amount of funds deposited in a company’s account

AUTHORIZED PERSONS for the application:

  • Executive management
  • Founder
  • An official authorized to represent without a power of attorney
  • Other persons authorized by power of attorney
Categories
Establish a company

To establish foreign invested limited liability company (LLC) in Mongolia

  Documentation required Recommendation
1 Application UB-03, UB-13 form Download from http://burtgel.gov.mn/service/index.php/les-newlist/download

 
2 Obtaining a company name The founder(s) or an authorized representative acting under a Power of Attorney shall obtain the name of a LLC from the State Registration Authority by physically visiting or by online request.

https://www1.e-mongolia.mn/

The company name shall meet the following requirements:

•      not duplicate other companies’ name; and

•      be in Cyrillic letters.

When an LLC obtains its name, the founders shall establish the company within 30 days. Otherwise, the verification sheet on the company name will expire in 30 days. Extension will done with additional fee.

 
3  Payment receipt of service fee
  • Name verification service fee is 10,000 MNT
  • Receipt deposited in Golomt Bank account 1401001101

 / Government Resolution No. 30230 of December 23, 2020 /

·         Stamp fee is 750,000 MNT

Receipt deposited in Golomt Bank account 1401002649

/ Article 15 of the Law on State Stamp Duty /

  • Service fee for issuing stamp and stamp control number 10,000 MNT

Receipt deposited in Golomt Bank account 1401001101

 / Annex to the Government Resolution №230 of 2020 /
4 Founder’s decision / resolution /,

1 copy

 

 

When an LLC obtains its name, the founders shall establish the company within 30 days.

 As for the resolution of the founders:

 

– Establishment of a company

– Address, telephone, operational activities, / activities not required special license/

– Share capital, face value and number of shares,

– Selection of the CEO and provide his/her name, and registration number (the founder may also be the CEO)

– The company’s charter must be approved as an appendix

– Decisions and resolutions shall be signed by the founders.

 

If the founder of a company is a legal entity:

– A decision (resolution) to establish a subsidiary (affiliate) company shall be made, signed and certified by the shareholders. A copy of the parent company’s certificate and charter shall be provided.

 
5 Charter – Article 16.2 of the Company Law shall be reflected in the charter.

– 2 copies in Mongolian and 1 copy in foreign languages
6 Contract If there are 2 or more founders, a cooperation agreement must be concluded and notarized.

/ 2 in Mongolian and 1 in foreign languages
7 Proof of investment According to Article 3.1.5 of the Investment Law, the amount of investment made by each foreign investor’s contribution shall be equal or above USD 100,000 or equivalent amount in MNT. If the foreign investor is investing in cash, movable property and intellectual property, a bank statement confirming the transfer of funds from abroad, an account statement, a customs declaration and a certificate issued by the competent authority shall be provided,
8 Proof of address and location of legal entity Copy of immovable property, or rent contract
9 Passport copy Passport copies of authorized foreigners

If the document is issued in a foreign language, it must be translated and certified in Mongolian.  If issued in a foreign country, it must be certified through a Consulate or Diplomatic Office.

Categories
Line of credit (LOC)

Terms and conditions

Credit line MNT  USD EUR RMB

JPY

Maximum amount

The maximum loan amount depends on the size of the business, capital and financial capacity.

Interest rate/monthly/

 2.00%-1.60% 1.50%-1.10% 1.20%-0.85% 1.20%-0.85%

1.20%-0.85%

Interest rate/annually/

 24.00%-19.20% 18.00%-13.20% 14.40%-10.20% 14.40%-10.20%

14.40%-10.20%

Commitment fee /annually/

 2.8%-4.2% 2.0%-3.6%

1.5%-3.0%

Term

 Up to 60 months

Up to 36 months

Service fee

 1% of the loan amount /maximum MNT 1,500,000/

0.5% of the loan amount /maximum USD 1,500 or amount equivalent in EUR, CNY, JPY

Penalty interest rate

Penalty interest rate /equivalent to 20% of base interest rate/ is added to the base interest rate

Fee for changing the original loan terms

0%

Loan application fee 

30,000 MNT

Credit recording enquiry fee /during loan analysis procedure/

Individual – MNT 1,000

Corporate – MNT 1,000

* Effective percentage rate /annual/: MNT 19.69%-24.51%

Categories
Establish a company

To register subsidiary and representative office

д/д

 Documentation required

Recommendation

1

 Application form (UB-04 & UB-13 forms) Download from http://burtgel.gov.mn/service/index.php/les-newlist/download

2

 Receipt of payment of state stamp duty
  • State stamp duty fee of MNT 750,000

 Receipt deposited in Golomt Bank account 1401002649

 /Article 15 of the Law on State Stamp Duty/

  • Service fee for issuing stamp and stamp control number MNT 10,000

Receipt deposited in Golomt Bank account 1401001101

/Annex to the Government Resolution №230 of 2020/

3

 Certificate of state registration /original/ A note on the establishment of a subsidiary or representative office shall be made in the Certificate of State Registration of the legal entity.
If the founder is a foreign legal entity, a copy of the certificate and charter shall be provided
/in accordance with clause 29.4 of the Civil Law/

4

 Founder’s decision/resolution,

 1 copy

 An authorized entities for founding the following institutions:

  • For a LLC, the Shareholders
  • For NGOs, Funds, Governing Board
  • For Partnerships, all Members’ meeting

The resolution shall state:

 

 – Establishment of a Subsidiary or Representative Office

 – Appointing the management

 – Address and telephone number of the representative office

 – an Operational regulation shall be approved as an appendix

5

 Operational regulation /1 copy/ The Operational regulation should include the address, telephone number and operating activities of a subsidiary or Representative Office.

A subsidiary/branch is a special unit located in a place other than the place of residence of a legal entity and performing all or some of its main functions. /Article 29.2 of the Civil Law/

A representative office is a unit located in a place other than the legal entity’s place of residence and responsible for protecting its legitimate interests or performing transactions and other legal actions on its behalf.
/Article 29.3 of the Civil Law/

6

 Passport copy /foreign citizen/ Passport copies of authorized foreigners

7

 Proof of Address Copy of immovable property, or rent contract of the Subsidiary/Representative office.

8

 Tax reference In accordance with article 10.6 of the Law on State Registration of Legal Entities.
Written permission from the competent authority in cases specified in laws and regulations (for example, permission from relevant organizations such as the Ministry of Finance and the Financial Regulatory Committee are required if the operation covers Banking, Insurance, Audit, NBFIs and Savings Cooperatives)
The executive management, the founder, the officials authorized to represent without a power of attorney, and other persons authorized by the power of attorney shall have the right to submit an application.
Categories
Line of credit (LOC)

Requirements

  • Evidence of running the business in the last 12 months and continuing to pursue it as a going concern
  • Good credit history and score
  • Collateral to satisfy the bank’s requirements (e.g. property deeds, other fixed or moveable assets, etc.)
  • Other requirements from bank on a case by case basis

 

Categories
Line of credit (LOC)

Eligibility or required documents/Individual/

  • Loan Application / Bank’s application / and 1 passport-sized photo
  • A copy of the notarized citizen identification card (applies also to a person who jointly receives the loan). The loan officer checks the original ID card and makes a copy. Otherwise, the loan officer requires a notarized copy.
  • Statement of residence and statement from the National Police Agency of Mongolia
  • Collateral documents, real estate certificate, reference, land certificate, contract, cadastral map
  • Proof of income source documents and account statements
  • Permits for operation and lease agreement
  • Proof of loan purpose
  • Proof of tax receipt in case of real estate purchase
  • Other required documents
Categories
Establish a company

Change in the share capital /increase or decrease/

 

Documentation required

Recommendation 
1

Application UB-03, UB-12 form

Download from http://burtgel.gov.mn/service/index.php/les-newlist/download
2 Payment receipt of service fee
  • MNT 10,000  for registering additional change in Mongolian legal entity
  • Receipt deposited in Golomt Bank account 1401002649
  • MNT 40,000 for registering additional change in foreign invested LLC 
  •  Receipt deposited in Golomt Bank account 1401002649
  •  /Article 15 of the Law on State Stamp Duty /
  • If to obtain new certificate, MNT 88,000
  • For service fee
  • Receipt deposited in Golomt Bank account 1401001101
  • /Annex to the Government Resolution №230 of 2020 /

4

 Certificate of registration /original/

If the certificate is lost, it should be announced in the daily newspaper, and the newspaper should be presented
5 Founder’s decision / resolution /,

 1 copy

 

Decision or resolution shall be registered within 15 working days after the issuance

 The resolution shall reflect how the amount of share capital is changed, the revised charter (amendment to the charter) shall be approved and signed by the shareholders.

I

 – if there are any changes in the name, location, operational areas of business, share capital of the legal entity, the charter shall be approved as an appendix, signed and stamped;

If there are 2 or more shareholders, the minutes of the meeting shall be taken and signed by the participants of the meeting.

If the company that transfers or receives the shares is the company, it shall issue a resolution of the shareholders and the shareholders shall sign it.  /if necessary, include the content of the contract, decision, resolution and charter that authorizes the relevant person to sign on behalf of the company /
5 Proof of announcement of the shareholders’ meeting Evidence that the founders, shareholders and authorized persons have notified the meeting in accordance with the law and regulations in case of absence from the meeting
6 Notarized contract or inheritance certificate After the decision (decree) on the transfer of rights is made, the relevant agreement specified in the Civil Law shall be concluded and notarized. /Rights transfer, to present, sale and purchase agreement/
7 Charter – Article 16.2 of the Company Law shall be reflected in the charter.
8 Passport copy Passport copy if the founder, shareholder, executive director, chairman and member of the board is a foreign citizen
9 Proof of address and location of legal entity Copy of immovable property, or rent contract
10 Permission from the competent authority If you are engaged in banking, insurance, auditing, etc., you will need written permission from the Ministry of Finance and the Financial Regulatory Committee.
11 Tax reference 10.6 of the Law on State Registration of Legal Entities / in case of change of information on the Ultimate Beneficial Owner of a legal entity holding a mineral license and its shares, participation and voting rights, a certificate from the tax administration confirming payment of the relevant tax /

If the document is made in a foreign language, it must be translated and certified into Mongolian, and if it is issued abroad, it must be certified by an “Apostille” or notary or consul.

The executive management, the founder, the official authorized personnel to represent without a power of attorney, and other persons authorized by the power of attorney shall have the right to submit an application.

Categories
Investment Loan

Terms and conditions

Investment loan

 MNT USD EUR RMB

JPY

Maximum amount

The borrower must finance at least 30% of the total investment.

The maximum loan amount depends on the size of the business, capital and financial capacity.

Interest rate/monthly/

 2.00%-1.60% 1.50%-1.10% 1.20%-0.85% 1.20%-0.85%

1.20%-0.85%

Interest rate/annually/

 24.00%-19.20% 18.00%-13.20% 14.40%-10.20% 14.40%-10.20%

14.40%-10.20%

Term

 Up to 60 months

Up to 36 months

Service fee

 1% of the loan amount /maximum MNT 1,500,000/

0.5% of the loan amount /maximum USD 1,500 or amount equivalent to EUR, CNY, JPY

Penalty interest rate

Penalty interest rate /equivalent to 20% of base interest rate/ is added to the base interest rate

Fee for changing the original loan terms

0%

Grace period

Up to 12 months

Loan application fee 

30,000 MNT

Credit recording enquiry fee /during loan analysis procedure/

Individual – MNT 1,000

Corporate – MNT 1,000

* Effective percentage rate /annual/: MNT 19.69%-24.51%

Categories
Establish a company

Change /add/ subtract the company’s share capital

 Documentation required

 

ЗӨВЛӨМЖ

1

 Application form (UB-03 & UB-12 forms) Download from http://burtgel.gov.mn/service/index.php/les-newlist/download

2

 Receipt of payment of state stamp duty
  • MNT 10,000  for registering additional change in Mongolian LLC

Receipt deposited in Golomt Bank account 1401002649

  • MNT 40,000 for registering additional change in Foreign-invested LLC

Receipt deposited in Golomt Bank account 1401002649

/Article 15 of the Law on State Stamp Duty/

  • If to obtain new certificate, MNT 88,000

shall be paid as a State stamp duty fee.

Receipt deposited in Golomt Bank account 1401001101

 /Annex to the Government Resolution №230 of 2020/

3

 Certificate of registration /original/ If the certificate is lost, it shall be announced in the daily newspaper, and the newspaper should be presented

4

 Founder’s decision / resolution /,

1 copy

 

Decision or resolution shall be registered within 15 working days after the issuance

 The resolution shall reflect how the amount of share capital is changed, the revised charter (amendment to the charter) shall be approved and signed by the shareholders.
If there are 2 or more shareholders, the minutes of the meeting shall be taken and signed by the participants of the meeting.
If the shareholder is a company, the shareholders’ resolution is required.

5

 Amended charter /2 copies/ The amount of share capital shall be reflected in the charter.
In the case of a Foreign-invested LLC with 2 or more shareholders, a renewed agreement shall be executed between the shareholders.

/1 copy/

6

 Audited financial report /1 copy/ Approved by the State finance department of the respective district. /If reporting quarter is not due yet, the district may issue an interim report in paper form and submit it to the through СТСХ/
To increase the share capital through foreign investors for the Foreign-invested LLC: bank reference confirming the transfer of funds from abroad, account statement and customs declaration shall be provided

7

 Permission from the competent authority If you are engaged in banking, insurance, auditing, etc., you will need written permission from the Ministry of Finance and the Financial Regulatory Committee.

8

 Tax reference In accordance with Article 10.6 of the Law on State Registration of Legal Entities.

·    If the document is issued in a foreign language, it shall be translated and certified into Mongolian, and if it is issued abroad, it shall be certified by an “Apostille” or Notary or Consulate.
Categories
Investment Loan

Requirements

  • Evidence of running the business in the last 12 months and continuing to pursue it as a going concern
  • Collateral to satisfy the bank’s requirements (e.g. property deeds, other fixed or moveable assets, etc.)
  • Other requirements from the bank on a case by case basis