There is a beneficial system of taxation for enterpreneurs in the country. The amount of the tax, that is necessary to pay to the corresponding agency, depends on the type of the company activity:
- Tax remissions for five years, and in more five years only half of the sum is charged. It concerns the offshores in Mongolia with foreign investments that have chosen the following areas of activity: extraction of minerals, metal mining, machinery manufacturing and electronics production.
- Offshore companies are granted an exemption from fees and special taxes if they are involved in building and maintaining of heat and electric generating plants, railways and motor roads, telecommunicational and aviation industries. Fee remission for five years, and then 50% during the next five years.
- If a company with foreign capital deals with importing equipment onto the territory of the state, it is free from custom charges.
- In case the export share is more than 50%, the enterprise is totally granted an exemption from taxation for three years, and in more three years it is charged 50%.
To do a legal business in the country one has to register an enterprise of the following kind:
- With a 100% foreign capital;
- A branch office of a foreign firm;
- An organization with a combined capital.
As for the amount of the authorized capital deposit to set up an offshore in Mongolia, it is necessary to credit 10 000 000 tugrics – 10 000 dollars to the temporary bank account.
The enterpreneurs are also obliged to register an office on the territory of the country. After the business activity is started, it is necessary to organize shareholders' meetings, hand over financial and annual reports as well as carry out an audit.