Jurisdiction - Mongolia
Mongolia – Regulatory Framework For Investment: Sanctions, Conclusion.

5 November, 2013


Legal News & Analysis – Asia Pacific – Mongolia



Non-compliance with the Investment Law attracts administrative penalties as specified above. 

Also, those who obtained Stabilisation Certificates in breach of the Investment Law will be subject to administrative penalties in the form of monetary fines, repayment of taxes, and confiscation of revenues. Where officials have unlawfully refused to grant or revoked Stabilisation Certificates, fines may be imposed.


The Investment Law is certainly a welcome development which should assist to promote domestic and foreign investment in Mongolia. Following the tumultuous investment environment after adoption of the SFI Law, it is a positive step in streamlining the investment environment and creating more favourable investment conditions. 

The Investment Law removes rather subjective and confusing approval requirements imposed on certain equity investment by foreign private investment. It further simplifies the registration process before a single body in place of the previous dual registration with FIRRD and LERO. The concept of Stabilisation Certificates and investment agreements suggests a more routine handling of significant investment. However, effective implementation is subject to further regulations to be issued by the MED and the Government, and therefore the main concern of foreign and domestic investors remains to be tested in relation to consistent application of the Investment Law and a stable operating environment.

It is not clear whether the amendment to the current regime which requires each foreign investor in a foreign-invested Mongolian entity to contribute a minimum of US$ 100,000 to the share capital of such entity is an unintended consequence of the legislative drafting process.

The approval system for investment by FSOEs is somewhat discretionary, and there is a considerable degree of subjectivity in a number of the general obligations on domestic and foreign investors.


1. Overview

2. Scope Of The Law, State Regulation Of Investment

3. General Framework For Investment

4. General Legal Guarantees And Obligations

5. Promotion Of Investment


Hogan Lovells


For further information, please contact:

Michael Aldrich, Partner, Hogan Lovells
[email protected]

Chris Melville, Partner, Hogan Lovells
[email protected]

Anthony Woolley, Hogan Lovells
[email protected]

Nominchimeg Odsuren, Hogan Lovells
[email protected]

Solongoo Bayarsaikhan, Hogan Lovells
[email protected]

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