Record of Changes in the State registration of Trademark



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In accordance with the Law on Trademarks and Geographical Indications, several changes can be made to the state registration of a trademark at the request of the trademark owner. These changes are important for ensuring that the trademark records are up to date and reflect any changes in ownership, validity, or other details.

Types of Changes to the Trademark Registration:

  1. Renewal of the Registration Validity Period
    Trademark owners can request a renewal of the registration validity period to extend the protection of their trademark.
  2. Change of Trademark Owner’s Name and Address
    If there is a change in the trademark owner’s name or address, the new details must be updated in the trademark register.
  3. Transfer of Trademark Ownership Rights
    If the ownership of the trademark is transferred, the new owner’s details must be recorded in the state register.
  4. Removal of Items from the Goods and Services List
    The trademark owner may request to remove certain goods or services from the registered list of goods and services associated with the trademark.

Process for Requesting Changes

  • Renewal of Registration Validity
    A request for renewal must be submitted to the relevant government authority either during the last year of the registration’s validity or within six months after the registration expires, during the grace period. Please note that renewing the registration validity will not involve changes to the trademark itself or the addition of new items to the goods and services list.
  • Notification of Changes in Owner Details or Rights
    If the trademark owner changes their name or address, or if there is a transfer of ownership, the trademark owner must notify the relevant government authority in writing or electronically. This notification must occur within six months of the change. Once the notification is received, the change will be recorded in the state trademark register.
  • Public Announcement
    After the changes are made to the trademark register, the government authority will publicly announce these changes through official periodic publications.
  • Service Fees
    There will be a service fee associated with requests for an extension of the registration validity period, changes to the trademark owner’s name or address, or the transfer of trademark rights. These fees are required to process the changes in the state register.

Conclusion

Keeping the state trademark register up to date is essential for trademark owners to maintain the legal protection of their marks. By understanding the procedures for renewing registration, changing ownership details, transferring rights, and updating the goods and services list, trademark owners can ensure their intellectual property rights remain valid and protected.

#Trademark #IntellectualProperty #TrademarkRegistration #BrandProtection #TrademarkOwner #IPRights #LegalServices #BusinessLaw #Mongolia #TrademarkRenewal #TrademarkChanges #Trademarks #StateRegistration #BrandManagement

Digital Origin Certificates for Exports from Mongolia to Japan



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The Economic Partnership Agreement (EPA) between Mongolia and Japan came into effect in 2016, with implementation starting on June 7, 2016. This agreement aims to boost trade, investment, and industrial sector exports, while also increasing foreign currency earnings between the two nations. The EPA focuses on reducing tariff and non-tariff barriers, facilitating trade, and simplifying customs procedures for smoother transactions.

Under the agreement, both countries negotiated a reduction in import customs tariffs for a wide range of goods. Mongolia will benefit from a reduction on 59% of the imported goods, which includes around 3,429 types of products across 97 categories. On the other hand, Japan has agreed to lower tariffs on 86% of the goods imported from Mongolia, covering approximately 8,000 types of goods. These tariff reductions came into effect as soon as the agreement was implemented.

To further streamline the export process, Mongolia will now digitize the origin certificates for goods being exported to Japan. According to the Mongolian National Chamber of Commerce and Industry (MNCCI), starting from May 7, 2025, exporters will receive their origin certificates electronically in PDF format. This move is part of an ongoing effort to improve the efficiency and convenience of trade between the two nations.

With this transition to digital certificates, Mongolia and Japan continue to strengthen their economic relationship, creating new opportunities for businesses in both countries.

#MongoliaJapanTrade #EconomicPartnershipAgreement #DigitalCertificates #TradeEfficiency #ExportBusiness #MongolianExports #JapanTrade #TradeSimplification #CustomsProcedures #BusinessOpportunities #MNCCI

Tax Incentives for Businesses Operating in Free Zones in Mongolia: What You Need to Know



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Are you considering investing in a free zone? The benefits can go beyond logistical advantages—there are tax incentives you might be eligible for, depending on the nature of your business and your investment scale. Let’s explore the opportunities outlined in the Corporate Income Tax Law and how they can work for you.

What Are Free Zones?

Free zones are designated areas where businesses can operate under special regulations designed to encourage investment, innovation, and trade. To support economic development, many governments offer tax reliefs to incentivize investments in infrastructure and key facilities within these zones.

Tax Relief: How It Works

Under Article 22.5 of the Corporate Income Tax Law, businesses operating in free zones can enjoy significant tax breaks if they meet one of the following conditions:

1. Investing in Free Zone Infrastructure

If your business has invested $500,000 USD or more in critical infrastructure, such as:

  • Energy and heating systems
  • Pipelines and clean water supply
  • Sewage systems
  • Roads, railways, or airports
  • Communication networkss

Then, 50% of the income you earn from the free zone—equal to the amount of your investment—will be exempt from corporate income tax.

2. Investing in Specific Free Zone Facilities

If your investment focuses on constructing or developing:

  • Warehouses
  • Loading and unloading terminals
  • Hotels or tourism complexes
  • Factories producing export-oriented or import-substituting products

And your investment totals $300,000 USD or more, you’re also eligible for a tax break. Similar to infrastructure investments, 50% of your income from the free zone—up to the value of your investment—is exempt from corporate income tax.

Beyond the tax incentives, free zones offer:

  • Easier access to global markets
  • Streamlined customs procedures
  • Modern infrastructure tailored for business operations
  • Networking opportunities with like-minded entrepreneurs

These advantages make free zones a hotspot for businesses aiming to expand regionally or globally while optimizing costs.

Amendments to the Corporate Income Tax (CIT) Law: Social Responsibility Tax Relief Explained



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As part of its ongoing efforts to encourage corporate social responsibility (CSR), the Mongolian government has introduced significant amendments to the Corporate Income Tax (CIT) Law. Effective from August 30, 2024, these provisions allow businesses to claim tax relief for specific activities that benefit society, the environment, and public welfare. Here’s a breakdown of the new tax relief opportunities available under section 22.9 of the law.

Key Highlights of the Tax Relief Provisions

Under these amendments, businesses can deduct certain expenses from their taxable income as part of their social responsibility initiatives. These expenses must align with the law’s stipulations and are subject to the following conditions:

  • The expenses must be unrelated to the taxpayer’s income-generating operations.
  • Deductions include investments in depreciable fixed assets, financial support for unrelated entities, and charitable contributions.
  • The total deduction is capped at 1% of the taxable income for the relevant tax year.

Activities Eligible for Tax Relief

To qualify for this tax benefit, businesses must invest in one or more of the following activities:

  1. Environmental Conservation
    • Initiatives aimed at reducing pollution, restoring ecosystems, and protecting natural resources.
  2. Care for Vulnerable Groups
    • Supporting senior citizens, individuals with disabilities, and children through care facilities and programs.
  3. Cultural Heritage and the Arts
    • Projects that protect and restore cultural sites, or provide support to museums, libraries, and artistic endeavors.
  4. Public Infrastructure Development
    • Funding and maintaining essential infrastructure such as parks, roads, and public transportation systems.
  5. Sports Development
    • Building and maintaining sports facilities or supporting athletes participating in Olympic-level competitions.
  6. Education and Scholarships
    • Providing scholarships for students and funding educational institutions to enhance learning opportunities.
  7. Research and Development
    • Supporting innovation through grants to universities and scientific organizations.

To ensure transparency and alignment with the law, businesses must adhere to reporting standards set by relevant government ministries. These ministries will also establish guidelines to verify compliance with the eligibility criteria for tax relief.

The amendments are applicable from August 30, 2024, and will remain in effect until January 1, 2035. Businesses planning to take advantage of this tax relief must carefully document and report eligible expenses to qualify.

Conclusion

The revised CIT law provides a dual benefit—encouraging businesses to engage in socially responsible activities while easing their tax burden. By aligning corporate operations with these initiatives, companies can contribute to the broader development of society, culture, and the environment.

If you’re a business owner or finance professional, now is the time to explore how your organization can benefit from these provisions while making a positive impact.

Importance of Conducting a Preliminary Trademark Search



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The process of securing intellectual property rights for a brand name or logo often takes more time than anticipated. Receiving a preliminary decision to reject your trademark registration 6-9 months after filing is not the outcome you desire. Such a situation can lead to complications, including having to change your product or service’s brand name, logo, packaging, or advertising content.

Why are trademark applications rejected?

If you intend to register your trademark with the Intellectual Property Office to secure exclusive rights, it’s important to comply with not only international agreements and conventions but also the requirements outlined in Article 5 of the Law on Trademarks and Geographical Indications.

What are the requirements?

A trademark may be rejected if it:

· Directly describes the goods or services;

· Indicates the characteristics of the goods or services;

· Specifies the origin or place of manufacture of the goods or services;

· Is identical or similar to a previously filed or registered trademark.

Therefore,

Before filing your brand name or logo, the face of your business, with the Intellectual Property Office, it is advisable to conduct a preliminary search to ensure it complies with legal requirements and does not closely resemble existing trademarks.

Important note!

If your brand name is expressed in a foreign language, it is necessary to conduct searches not only using the primary word but also translations, transliterations, and phonetically similar variations. Additionally, check whether translations might inadvertently include inappropriate or offensive term.

Benefits of a preliminary search

· Prevents receiving a preliminary decision to reject your trademark application due to the reasons mentioned above.

· Avoids the risk of unintentionally infringing someone else’s exclusive rights, thereby protecting you from unforeseen legal liabilities and costs.

By conducting a preliminary trademark search, you can mitigate risks and ensure compliance with regulations. Our law firm, with experienced intellectual property lawyers, is ready to assist you in carrying out professional trademark searches tailored to your needs.

The Essential Guide to Legal Entity Liquidation in Mongolia: What Every Business Owner Should Know



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Liquidation is an inevitable process for businesses winding down operations, and understanding how it works in Mongolia is crucial for any business owner. The country’s legal framework is designed to ensure that liquidation is transparent, orderly, and fair for all stakeholders involved. In this blog post, we will delve into the key aspects of legal entity liquidation in Mongolia, including the types of liquidation and the necessary steps in the process.

Types of Liquidation

In Mongolia, liquidation is primarily categorized into two types:

  1. Voluntary Liquidation: This occurs when the owners or shareholders decide to close the business. Reasons for voluntary liquidation may include financial difficulties, shifts in market conditions, or a strategic pivot to other ventures.
  2. Involuntary Liquidation: Initiated by creditors or the court, this type occurs when a company cannot pay its debts. This often arises from bankruptcy, where the company’s liabilities exceed its assets.

The Liquidation Process

The liquidation process in Mongolia generally follows these key steps:

  1. Decision to Liquidate: For voluntary liquidation, the shareholders must formally resolve to liquidate the company, documenting this decision in the meeting minutes.
  2. Appointment of Liquidators: Qualified liquidators are appointed to oversee the process, including settling debts, selling assets, and distributing remaining funds to shareholders.
  3. Notification: The company must notify relevant authorities, such as the State Registration Office and tax authorities, ensuring compliance with legal obligations and informing creditors of the impending liquidation.
  4. Asset Valuation and Sale: Liquidators assess and determine the market value of the company’s assets, which are then sold to pay off creditors. Maximizing asset value is critical during this step.
  5. Settling Debts: Liquidators prioritize debt settlement according to legal obligations, usually paying secured creditors first, followed by unsecured creditors. If funds are insufficient, creditors receive a pro-rata share based on amounts owed.
  6. Final Distribution: After all debts are settled, any remaining funds are distributed among shareholders according to their ownership interests in the company.
  7. Deregistration: The final step involves deregistering the company from the State Registration Office, officially marking the end of the company’s existence in Mongolia.

Understanding these processes is vital for business owners contemplating liquidation. With the right knowledge and guidance, you can navigate the complexities of legal entity liquidation effectively.

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“How to Account for Free Inventory Under IAS 2: A Step-by-Step Guide”



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When it comes to receiving free inventory, the accounting treatment can be tricky. Whether you’re receiving assets from a government body, suppliers, or shareholders, understanding the correct International Accounting Standard (IAS) to apply is crucial. This guide will explain how to record free inventory, particularly under IAS 2, and how other IAS rules, such as IAS 20 for government grants, may apply.

Free Inventory: Different Sources, Different Accounting

  1. Free Assets from the Government: If your company receives assets as part of a government grant, these are accounted for under IAS 20 (Government Grants and Government Assistance), not IAS 2. This applies to grants from any governmental entity, whether local, national, or international bodies like the IMF, World Bank, or UN. The assets received must be disclosed according to the specific conditions of the grant, and the valuation process must adhere to IAS 20’s rules.
  2. Free Assets from a Supplier: When free assets are received from a supplier, such as spare parts in a purchase contract, they are considered a form of discount under IAS 16 (Property, Plant, and Equipment). The fair value of the free assets must be deducted from the total purchase price, effectively lowering the cost of the purchased inventory.
  3. Free Assets from Shareholders: Shareholders may transfer assets like machinery or land to the company for free. In this case, IAS 2 and IAS 16 require that these assets be recognized at fair value. However, these contributions should not be recorded as income. Instead, they are reflected as capital contributions under the equity section of the balance sheet.

Practical Application

  • Government Grants: Recorded under IAS 20, and recognized as either deferred income or deducted from the carrying amount of the related asset.
  • Supplier Discounts: Recorded as part of the purchase cost reduction, adhering to IAS 2 or IAS 16.
  • Shareholder Contributions: Recognized as capital contributions, not income, and added to the fixed asset account at fair value.

Key Journal Entries for Free Inventory

  • Debit: Fixed assets (Fair value of the asset)
  • Credit: Equity/Other income (Capital contribution)

This ensures the correct accounting treatment, aligning with IAS standards and providing accurate financial reporting.

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“Unlock Mongolia’s Oil Exploration Licensing: A Step-by-Step Guide for Legal Entities”



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Mongolia’s oil reserves offer vast potential for legal entities looking to venture into the exploration sector. However, securing an oil exploration license in Mongolia requires navigating a detailed legal and regulatory process. Here’s a breakdown of the essential steps and requirements to ensure your success.

Step 1: Prepare Your Application

Before diving into the licensing process, ensure you have all necessary documents. These include:

  • Corporate Registration: Proof of registration in Mongolia or a valid permit for foreign entities.
  • Exploration Plan: A comprehensive outline detailing exploration methods, technology, and project timelines.
  • Financial Evidence: Financial reports showcasing the ability to fund the project, including past financials and future budgets.
  • Environmental and Social Impact Assessments: Reports addressing how the project could impact the environment and local communities, along with mitigation strategies.

Step 2: Application Review

Once submitted, the Ministry of Mining and Heavy Industry, along with other regulatory bodies, evaluates your application. They assess your company’s technical and financial capacity and the environmental impacts. For large projects, public consultations with local communities might be required to gather input.

Step 3: License Agreement

If the application meets all the legal and regulatory requirements, the Ministry grants the exploration license. This agreement outlines the license area, duration, and compliance expectations.

Step 4: Ongoing Reporting

After securing the license, companies must submit regular progress reports on exploration activities, financial expenditures, and any encountered challenges to the relevant Mongolian authorities.

Securing an oil exploration license in Mongolia is a multi-step process requiring strong preparation, financial stability, and environmental accountability. By adhering to these requirements and staying informed about any regulatory updates, your company can successfully navigate Mongolia’s oil exploration landscape.

#Mongolia #oilexploration, #oillicense, #legalrequirements,  #oilexplorationprocess, 

Mongolia’s High-Tech Oil Refinery Plant Project: A Game-Changer for Energy Independence and Oil Exploration



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Mongolia’s state-of-the-art oil refinery plant project, launched in 2021, marks a significant milestone in the country’s push toward industrial growth and energy independence. This cutting-edge facility is not only set to process crude oil domestically, but it also promises to drastically reduce Mongolia’s reliance on fuel imports, boosting both economic security and national self-reliance.

A New Chapter in Mongolia’s Energy Sector

With its advanced technology, this oil refinery stands as a symbol of progress in Mongolia’s industrial sector. The plant’s design includes sophisticated emission controls, safety features, and efficient refining processes, making it capable of meeting international standards. Beyond that, this venture is expected to create jobs, stimulate local business, and strengthen Mongolia’s role in the regional energy market.

The Urgent Need for Oil Exploration

For the refinery to operate efficiently, a steady supply of crude oil is essential. As a result, oil exploration in Mongolia has become increasingly vital. Here’s why expanding oil exploration is crucial to the refinery’s success:

  1. Raw Material Supply: Ensuring a stable flow of crude oil is necessary to maintain refinery operations and avoid potential supply chain disruptions.
  2. Economic Independence: By tapping into its domestic oil reserves, Mongolia can cut down on fuel imports and bolster its economy through increased revenues and job opportunities.
  3. Innovation and Advancement: Investment in modern oil exploration techniques could elevate Mongolia’s standing in the global energy market.
  4. Sustainability: A balance between resource exploration and environmental responsibility is key to maximizing benefits while minimizing harm.

Mongolia’s strategic vision for its energy sector hinges on the synergy between the refinery’s progress and an accelerated focus on oil exploration. In our next blog, we’ll explore the legal framework and licensing requirements for oil exploration in Mongolia, offering insights into how businesses can navigate this growing industry.

#MongoliaOilRefinery #EnergyIndependence #OilExploration #Sustainability #EconomicGrowth #EnergySecurity #IndustrialProgress #RefiningTechnology #MongoliaEnergy #OilIndustry

When Should You Start Calculating Depreciation? The Crucial Timing You Can’t Afford to Miss



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Many companies face the dilemma of when to begin depreciating valuable assets, especially when they remain unused for months. The key question: Should you start calculating depreciation as soon as an asset is purchased, or only when it begins generating revenue? The answer lies in IAS 16 Property, Plant, and Equipment.

What Does IAS 16 Say?

Paragraph 55 of IAS 16 states that depreciation begins when an asset is “ready for use”—not when it’s actively generating revenue. This means that as soon as the asset is in a usable condition, depreciation should be calculated, regardless of whether it’s currently being used in operations.

Common Violation: Depreciating “In Use”

A frequent mistake companies make is delaying depreciation until the asset is actively being used. This is a violation of IFRS standards. Depreciation needs to start when the asset is ready for its intended purpose, even if it remains idle for some time.

Example: Special Purpose Equipment

Imagine your company purchased new equipment on February 1, 2020, to manufacture a new product. The equipment requires installation and testing, which is completed by April 2020. However, production of the new product only begins in June 2020.

Here’s the timeline:

  • The equipment is ready for use in April 2020 after installation and testing are complete.
  • Production doesn’t start until June 2020, but under IFRS, depreciation should begin in April 2020 when the equipment is fully operational, not when it’s actively used.

Challenges: Depreciation Without Revenue

One issue with starting depreciation before an asset generates income is that it creates an expense on your financial statements without corresponding revenue. This appears to conflict with the coherence principle, which links expenses to revenue generation.

Solution: Imposition on Units of Manufactured Products

A practical approach to this issue is the “units of production” method. Under this method, depreciation is tied to the output of the equipment. If no products are being manufactured, depreciation costs do not accrue for that period. This aligns depreciation expenses more closely with revenue generation.

Key Takeaways:

  • Depreciation should start when the asset is ready for use, not when it begins generating income.
  • Starting depreciation too late can lead to IFRS non-compliance.
  • Consider the “units of production” method to better align depreciation with asset output.

Understanding and applying IAS 16 properly can save your business from compliance issues and ensure accurate financial reporting.

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