Legislative Update: Mongolia Revises its Law on the State Registration of Legal Entities
05 May 2015Client Alerts Ulaanbaatar
On 29 January 2015, the Mongolian Parliament adopted the Revised Law on the State Registration of Legal Entities ("Revised Law") which entered into force on 1 March 2015. The relevant ancillary regulations were adopted on 27 February 2015 by the Ministry of Justice ("MoJ") and the State Registration Office ("SRO").
Previous regime and need for change
Before the adoption of the new Law on Investment on 3 October 2013 ("Investment Law") and the November 2013 move to a revised registration system, there was a three step system for registration of foreign-invested legal entities: first, registration at the Foreign Investment Registration and Regulation Department, followed by registration with the Legal Entities Registration Office under the State Registration Office ("LERO"), and finally registration with the relevant tax authority. Upon adoption of the Investment Law, the Foreign Investment Registration and Regulation Department was incorporated into LERO, removing one step from the process.
However, according to official sources, there was further need for revision to the registration system due, among other things, to the fact that on average LERO receives 220 applications per day relating to new registrations or amendments to the registered details of existing entities.