Category Archives: Mongolia business law

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.

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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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