Sereeter JAVKHLANBAATAR, Acting Director General, Invest Mongolia Agency, The Ministry of Economic Development of Mongolia

1. LAW ON INVESTMENT OF
MONGOLIA
Sereeter JAVKHLANBAATAR
Acting Director General
Invest Mongolia Agency
THE MINISTRY OF ECONOMIC DEVELOPMENT OF MONGOLIA
Hong Kong, 19 November 2013

2. 1. MORE LIBERALIZED MARKET CONDITION
2. BUSINESS FRIENDLY ENVIRONMENT
3. INCREASE THE EFFICIENCY OF INVESTMENT
4. TOWARDS ECONOMIC DIVERSIFICATION
THE KEY CONCEPTS OF THE LAW

3. Eliminates approval system to foreign
investors and replaces it with registration
procedure.
Promises the same guarantees and
protections to both Domestic and
Foreign Investors.
THE KEY CONCEPTS
1. MORE LIBERALIZED MARKET CONDITION

4. Foreign
Investment
Law 1993
Strategic
Investment
Law 2012
Investment
Law 2013
REPLACED LAWS

5. No-Expropriation
Intellectual Property Protection
Free Repatriation
Choice for Dispute Settlement
The Law will not be amended under 2/3 of
parliament members
GUARENTEES FOR INVESTORS

6. Reduces starting a business procedure at
least 30 days
Creates an independent agency to serve
investors in many ways
Reveals possible tax and non-tax state
supports and incentives to investors
THE KEY CONCEPTS
2. BUSINESS FRIENDLY ACT

7. INVESTORS’ REGISTRATION PROCEDUREForeignInvestors
Private
State
owned
Registration
Admin
Ministry
$100 000
threshold for
each investor
Mining
Banking and Financing
Media and Telecommunications
Business
Activities
Owned by
more than
50%
Till 33%
More than
33%

8. Facilitates a mechanism to follow up real
projects in the economy
Projects need to be qualified with certain
criteria/Environment, Know-How, Jobs
e.g.,/
Increases responsibilities of both state
and investors
THE KEY CONCEPTS
3. INCREASING EFFICIENCY OF INVESTMENT

9. ISSUING PROCEDURE FOR
STABILIZATION CERTIFICATE
From 5 to 18 years:
1. Corporate Income Tax
2. VAT
3. Customs Tax
4. Royalty
Projects
Investors
Foreign
Domestic
Invest
Mongolia
Agency
+
Experts
Council
STABILITY
CERTIFICATE
CRITERIA:
Thresholds based on
the regions (see
Table1 & Table2)
Environment
Friendly
New techs & know-
how
Stable job creation

10. INVEST MONGOLIA AGENCY
Director General
Promotion and
Consulting Division
Investment
Assessment
Division
Administration,
Human Resources
Division
Project Assessing
Council

11. First Legal Act including regional and
sectors classification in order to diversify
the economy as a whole.
Helps Decentralization and Urbanization
to rural areas
THE KEY CONCEPTS
4. TOWARDS ECONOMIC DIVERSIFICATION

12. In Mining Extraction, Heavy Industry, Infrastructure Sector
TABLE 1.
Investment
amount
(in billion
MNT)
STABILIZATION PERIOD
(in years)
Investment
completion
period
(in years)
Ulaanbaatar
region
Central
region
(Gobisumber,
Dornogobi,
Dundgobi,
Darkhan-Uul,
Umnugobi,
Selenge,Tuv,)
Khangai
region
(Arkhangai,
Bayankhongor,
Bulgan,
Orkhon,
Uvurkhangai,
Khuvsgul,)
Eastern
region
(Dornod,
Sukhbaatar,
Khentii)
Western
region
(Bayan-ulgii,
Gobi-Altai,
Zavkhan,
Uvs, Khovd)
30-100 5 6 6 7 8 2
100-300 8 9 9 10 11 3
300-500 10 11 11 12 13 4
Over 500 15 16 16 17 18 5

13. INVESTMENT
(in billion MNT)
Stabilization
period
(in years)
Investment
Completion
period
(in years)
Ulaanbaatar
region
Central
region
(Gobisumber,
Dornogobi,
Dundgobi,
Darkhan-Uul,
Umnugobi,
Selenge, Tuv,)
Khangai
region
(Arkhangai,
Bayankhongor,
Bulgan,
Orkhon,
Uvurkhangai,
Khuvsgul,)
Eastern
region
(Dornod,
Sukhbaatar,
Khentii)
Western
region
(Bayan-ulgii,
Gobi-Altai,
Zavkhan, Uvs,
Khovd)
10-30 5-15 4-12 3-10 2-8 5 2
30-100 15 -50 12-40 10-30 8-25 8 3
100-200 50 -100 40-80 30-60 25-50 10 4
Over 200 Over 100 Over 80 Over 60 Over 50 15 5
TABLE 2.
Other sectors except mining extraction, heavy industry, infrastructure

14. THE INVESTMENT LAW
can be downloaded on
www.investmongolia.com