How to start a business in Mongolia as a foreigner (2026)
Starting a business in Mongolia as a foreigner: moderate.
Mongolia permits up to 100% private foreign ownership in most sectors, with registration processed through the General Authority for State Registration (GASR/LERO) in approximately 5-10 business days for formal approval and around one month end-to-end. A mandatory minimum capital contribution of USD 100,000 per foreign shareholder applies to entities with 25% or more foreign ownership, creating a notable barrier; a 2025 draft Investment Law proposes eliminating this threshold but was not yet enacted as of mid-2026. Foreign state-owned enterprises face additional approval requirements in strategic sectors.
Legal framework
Law of Mongolia on Investment (3 October 2013, as amended); Law on State Registration of Legal Entities; Law on Business Entities (Companies Act); General Authority for State Registration (GASR/LERO)
Key points: starting a business in Mongolia
Foreign ownership allowance
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.
Minimum capital requirement
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.
Registration steps and timeline
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.
Strategic sector restrictions (foreign SOEs)
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.
Land ownership prohibition
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.
Sector-specific ownership caps
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.
Sources
- investmongolia.gov.mn/legal-guide/
- state.gov/wp-content/uploads/2025/09/638719_2025-Mongolia-Investment-Climate-St
- eng.burtgel.gov.mn/state-registration-of-legal-entities
- investmentpolicy.unctad.org/investment-laws/laws/124/mongolia-investment-law
- pwc.com/mn/en/tax_alerts/pdf/2025/legal_alert_04_en.pdf
- investmongolia.gov.mn/the-updated-draft-of-the-investment-law-is-available-for-comments-and
- gratanet.com/publications/foreign-ownership-restrictions-limitation-of-foreign-inv
- mongoliainc.com/setting-up-a-business-in-mongolia/establishment-of-llc/
- privacyshield.gov/ps/article?id=Mongolia-Openness-to-Foreign-Investment
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Next topicOrientation, not legal advice: verify against the primary sources linked above. Last verified 24 May 2026. Methodology & how to cite · State of Technology Regulation 2026