ABOUT MONGOLIA

 Amongst all the countries in East Asia, Mongolia is a vast, landlocked country nestled between Russia to the north and China to the south. It is renowned globally for its immense historical legacy as the heart of the Mongol Empire led by Chinggis Khaan, its unique nomadic culture, and its seemingly endless steppes and Gobi Desert. Mongolia transitioned from communism to a democratic system and a market economy in the early 1990s, with its economy now heavily reliant on its rich mineral resources. The capital of Mongolia is Ulaanbaatar, which is its largest and most populated city, serving as the country’s primary economic, cultural, and political hub, as well as a gateway to its vast countryside. According to the World Bank, Mongolia has been classified as a Lower-Middle Income Economy, heavily influenced by commodity prices. The currency of Mongolia is the Mongolian Tögrög (MNT). As of today’s exchange rates (June 2025), 1 Indian Rupee is approximately 41.5 Mongolian Tögrög. The population of Mongolia is relatively small, estimated at approximately 3.5 million in 2024, making it one of the world’s least densely populated sovereign states. Being a landlocked country, Mongolia does not have direct maritime borders and relies on its neighbors’ railway networks to access seaports (e.g., through Russia to Vladivostok or through China to Tianjin) for international trade. The official language of the country is Mongolian. Russian is still understood by older generations, while English is increasingly spoken and understood, particularly among the youth and in business and tourism sectors. The vast majority of the population adheres to Tibetan Buddhism, with smaller communities of Shamanism, Islam, and Christianity. Mongolia has one primary international airport, Chinggis Khaan International Airport (UBN) in Ulaanbaatar, which is the main air gateway.

The standard corporate income tax rate in Mongolia is progressive, typically 10% for taxable income up to MNT 6 billion, and 25% for income exceeding MNT 6 billion. Mongolia is actively seeking foreign direct investment to diversify its economy and develop its vast natural resources. The government offers various investment incentives under the Law on Investment, which can include tax exemptions, reduced tax rates, customs duty exemptions on imported equipment and raw materials, and other benefits for investments in priority sectors such as manufacturing, tourism, agriculture processing, and renewable energy. Special Economic Zones also provide specific incentives and a more streamlined regulatory environment. The “Invest Mongolia Agency” (IMA) is the main government body responsible for promoting and facilitating foreign investments. Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a Rental property for your office.

Establishing a business in Mongolia has seen improvements in recent years, with the government actively working to enhance the investment climate and simplify bureaucratic processes. The Invest Mongolia Agency (IMA) serves as a key facilitator for foreign investors, providing information and assistance. A foreign investor planning to start a business in Mongolia can typically form a Limited Liability Company (LLC), which is the most common and flexible structure for foreign investors, or establish a Joint Stock Company, Branch Office, or Representative Office. Generally, 100% foreign ownership is allowed in most sectors. However, large-scale investments in strategic mineral deposits may involve specific regulatory requirements or state participation. Mongolia’s legal framework for investment is evolving, providing a generally consistent, albeit developing, environment for businesses.

In case an investor is planning to establish an LLC or a corporate business setup in Mongolia, Opesh Group will be helping you in taking the right decision for setting up your business in Mongolia and we will also guide you about how to follow the procedure while formulating your company in Mongolia.

Types of Business which can be started in Mongolia:

• Mining: The cornerstone of Mongolia’s economy. Vast reserves of coal, copper, gold, iron ore, and other minerals offer significant opportunities in extraction, processing, and related services.
• Agriculture & Livestock: With a massive livestock population, opportunities exist in meat processing, dairy production, cashmere and leather processing, and organic food production for export.
• Tourism: Leveraging its unique nomadic culture, vast open landscapes (steppes, Gobi Desert), and adventure tourism potential, there are opportunities in eco-tourism, cultural tours, and hospitality services.
• Renewable Energy: Mongolia has abundant wind and solar resources. Opportunities exist in developing large-scale wind and solar power projects to meet domestic demand and potentially for export.
• Infrastructure & Logistics: As a landlocked country, investment in transport infrastructure (roads, railways) and logistics hubs is crucial for connecting mines to markets and supporting transit trade.
• Financial Services: As the economy grows, opportunities are emerging in banking, insurance, and other financial services to support businesses and individuals.
• ICT & Digital Transformation: Growing domestic demand for digital services, e-commerce, and IT solutions presents opportunities in this nascent sector.

Advantages of Starting Business in Mongolia:

• Vast Mineral Wealth: One of the world’s richest countries in terms of untapped mineral resources.
• Strategic Location: Positioned between two major economic powers, Russia and China, offering unique trade and transit potential.
• Rapid Economic Growth: Driven by mining, the economy has shown strong growth potential when commodity prices are favorable.
• Developing Market Economy: Ongoing reforms aimed at liberalizing the economy and attracting foreign investment.
• Young & Educated Workforce: A relatively young and increasingly educated population, particularly in urban areas.
• Investment Incentives: Attractive tax benefits and other incentives for priority sectors and strategic investments.
• Unique Tourism Potential: Vast, unspoiled natural beauty and a distinctive nomadic culture.

Business Opportunities for Indians in Mongolia: There are excellent business opportunities in Mongolia for new investors who are planning to start their business abroad, particularly for Indian companies due to growing bilateral ties and India’s “Act East” policy. Mongolia’s resource-rich economy and strategic location offer unique prospects. Indian investors can particularly explore avenues in:

• Oil Refinery Project: Direct involvement in the construction and operation of Mongolia’s first oil refinery, supported by Indian credit lines.
• Mining: Investment in mineral exploration, extraction, and processing, particularly for resources like coking coal, copper, and rare earth minerals.
• Pharmaceuticals: Export and potential local manufacturing or distribution of Indian pharmaceutical products.
• Information Technology (IT): Opportunities in digital transformation, software development, and IT services.
• Renewable Energy: Indian expertise in solar and wind power can find opportunities in Mongolia’s abundant renewable energy resources.
• Agriculture & Food Processing: Investment in livestock product processing (meat, dairy) and modern agricultural techniques.
• Defense & Security: Ongoing cooperation opens avenues for defense-related trade and services.

Imports & Exports: Many goods are imported and exported from Mongolia. Imports and exports business is an ever-growing business in any country; however, you need to do proper R&D before investing in that product which you can import or export. You need to check whether that product is suitable for your target market and how much revenue you will be able to generate from that market.

Major items which are exported from Mongolia:

• Coal
• Copper concentrate
• Gold
• Crude oil
• Iron ore
• Cashmere and other animal products

Major items which are imported in Mongolia:

• Machinery and equipment
• Petroleum products (fuel)
• Vehicles
• Food products
• Chemical products
• Electrical appliances

Major items traded between Mongolia and India (as of 2023-2025 data):

• Exports from Mongolia to India: Raw materials, certain minerals (e.g., coking coal, if logistics improve), and animal products.
• Imports in Mongolia from India: Pharmaceutical products, machinery and equipment, electrical goods, food items (e.g., rice, tea), textiles, and chemicals.

Manufacturing: Manufacturing in Mongolia is relatively limited but is a growing sector, with efforts to diversify beyond raw material extraction. Key areas include the processing of livestock products (cashmere, wool, leather), food and beverage processing, cement and other construction materials, and some light manufacturing. The government encourages value-added production from its mineral and agricultural resources.

Mining: The mining industry is the dominant sector of Mongolia’s economy, driven by its vast mineral wealth. The country is a major global producer of coal (especially coking coal), copper, and gold. Significant deposits of iron ore, fluorspar, and rare earth elements also exist. Large-scale mining projects, often involving foreign investment, are crucial for export revenues and economic growth.

• GDP = $23.5 billion (nominal, 2024 est.)
• GDP Growth = 6.0% (2024 forecast), 6.5% (2025 forecast by IMF/World Bank)
• Ease of doing business rank = The World Bank’s ‘Doing Business’ report has been discontinued. Mongolia has consistently undertaken reforms to improve its business environment, though challenges related to regulatory implementation and infrastructure connectivity remain.
• GDP per Capita = $6,700 (nominal, 2024 est.)

Thanks for reading this Article. Watch our Video and know more about Mongolia. For any Business Enquiry Join Millionaire Program and change everything in life and Business.. Call/ WhatsApp +91- 8094607111.