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law on investment /2013/

2020/03/10

The Government of Mongolia has been taking an active policy to attract inward foreign direct investment since Mongolia has adopted a market economic system and has been persistently conducting a policy that stabilizes the legal environment of foreign investment and provides more favorable conditions for the investment procedures and regulations.

In 2013, the Government of Mongolia passed a new law on investment, which replaced both the old Investment law of 1993 and the Law on Strategic sectors of 2012. The new Investment law enables as open as possible investment environment for investors focusing on:

  • No approval to enter into market and buy a local company
  • No discrimination between foreign and local investors
  • Fast registration process
  • Stability guarantees- Provision of Tax stabilization certificate
  • Flexibility and friendly conditions for investors

The law on Investment provides incentives, such as tax exemptions, tax credits, longer terms to possess land, increased quota of foreign employees, simplified visa arrangements, and others. Only foreign state- owned entities (those with a minimum of 34% ownership of entities in the mining, media and communication, or financial sectors) must obtain approval from an official government representative. The Investment Law declares that a foreign state’s direct or indirect ownership exceeding 50% qualifies it as a foreign state owned entity.

INVESTMENT TYPES

  • Joint Ventures, Consortium
  • Mergers and Acquisition
  • Concession (PPP), Product sharing, management contract
  • Bond, Securities and other assets
  • Financial leasing, Franchising
  • Other investment types

LAW ON CONCESSION /2010/

THE PURPOSE OF THE CONCESSION LAW /2010/

The purpose of this law is to regulate matters related to the organization of tenders for granting investors concessions over state and local own property, the concession agreements, and the settlement of disputes.

PUBLIC-PRIVATE PARTNERSHIP STRATEGY

  • To attract and support implementation of the projects that are prioritized by the government
  • To intense the growth of the economy depending on the private sector’s resources, technology and management abilities
  • To liberalize the economy by increasing the participation of the private sector in the government’s investment policy and strategy.

In September 2013, the Government of Mongolia has approved the Resolution number 317 on “The list of the Concession/PPP projects”.

The concession sectors are:

  • Infrastructure and Construction projects
  • Highway projects
  • Airport projects
  • Energy sector projects
  • Environment sector projects
  • Education projects
  • Health, art, sport and tourism projects
  • Railway projects