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Understand the Jurisdictions Setup Requirement Before Proceed Your Mongolia Company Incorporation Services
The procedures for Mongolia Company Incorporation usually take 12 days or more and involve eight main steps.
The Eight Steps Are as Follows:
First, Verify and Reserve a Unique Company Name
This can be done with the Legal Entities Registration Office of the General Authority for State Registration of Mongolia (LERO). After LERO approves the proposed company name, a name reservation slip (in writing or electronically) and a bank account permission slip will be issued.
Company incorporation in Mongolia must then be completed within 30 days from the date the name reservation slip is issued.
Then, Start to open a Bank Account and Pay Registration Fee
The company needs to open a bank account before proceeding with registration. There is no charge to open a bank account. Only the name reservation slip is required to deposit the minimum balance. Additionally, the registration fee (i.e. state stamp duty) will need to be paid from this bank account.
In Addition, Register the Company and Obtain State Registration Certificate
Additional documents will then need to be submitted at LERO. It is in order to register company incorporation in Mongolia and obtain a state registration certificate.
The registration process is relatively quick. It can complete within 2 business days due to a regulatory law passed in 2018 which requires LERO to complete the company registration process within 2 business days. After registration of the company, the Registry will automatically publish a notice of company information.
Obtain the Unique Seal Number
Company incorporation in Mongolia requires a company seal and a unique number for the seal is required as it must be inscribed in the seal. In order to obtain the unique number, a request (in the pro-forma form) and the original state registration certificate must be submitted to LERO.
The unique number has ten digits:
- the first two digits are an index of the registration office which issued the seal number
- the second two digits are the last two digits of the year of the number issuance
- the last six digits are assigned by the state registration system
Register With the Local Tax Office
A newly established legal entity is legally obligated to register as a taxpayer within 14 days. It is after registering and receiving the registration certificate. A set of documents must be submitted to the tax office for this registration process after Mongolia company incorporation has been done.
Apply for Social Security Code
After the Mongolian company incorporation process is completed and the company has hired employee(s), it must register with the social insurance department. The registration is required to be done in person. Then, the District Social Insurance Department assigns a social insurance code to the company free of charge.
Make a Seal
After receiving a unique seal number from LERO, the company must go to a registered seal maker (approved by the Ministry of Justice) and provide a copy of the state registration certificate to create the company seal.
The surface of the seal must contain the name of the entity, the registration number, the code of the seal maker, a unique number.
Register for VAT
It should be noted that a company is eligible to register for VAT on a voluntary basis when the company reaches a threshold of MNT 10,000,000 in operational sales income. This becomes mandatory when the threshold of MNT 50,000,000 in operational sales income is reached. Then companies will be required to apply within 10 days from reaching the threshold.
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