Doing Business In Mongolia
Widely acclaimed for having one of the fastest growing economies around world, Mongolia has now gained recognition from the World Bank and the IFC as being one of the top 10 reformers in improving business regulations and for the growing ease of doing business in that country,
An article found on the online publication, “English News Mongolia” (
www.englishnews.mn
), entitled, “Mongolia Is One Of the Top 10 Reformers”, dated October 30, 2012, draws upon information found in a new report from the IFC and the World Bank entitled, “Doing Business, 2013”. This report states in part:
“The Doing Business Report 2013, which covers the period from June 2011 to June 2012 and which uses data for indicators that measure regulation affecting 10 key areas of the life cycle of businesses, finds that Mongolia eliminated the minimum capital requirements for establishing a local limited liability company, guaranteed the right of borrowers to inspect their own credit data, and enacted new legislation to strengthen disclosure requirements for related-party transactions.”
The Report goes on to state:
“This year Mongolia joined the global list of top 10 improvers for ease of doing business, said Augusto Lopez-Claros, Director, Global Indicators and Analysis, World Bank Group. “Mongolia implemented reforms that cut regulatory hurdles and make it easier for local firms to do business.”
“The World Bank is committed to supporting Mongolia in continuing to improve the investment climate and in maintaining stability, that are important to the country’s next stage of growth” , said IFC’s Director for East Asia and the Pacific Surgio Pimenta.
“Going forward, the World Bank Group and Mongolia will deepen the partnership through a number of new programs including streamlining permits and licenses to make the business environment more transparent, efficient, and friendly to small and medium enterprises.”
The online organization, Doing Business, (
www.doingbusiness.org
) analyzed the World Bank’s “Doing Business 2013” report referred to above. From the Report it created an informational chart which set forth the following ranking numbers for Mongolia as compared to 184 other economies it analyzed:
TOPIC RANKINGS
DB 2013 RANK DB 2012 RANK
Starting A Business 39 95
Dealing with construction permits 121 121
Getting Electricity 169 168
Registering Property 22 24
Getting Credit 53 87
Protecting Investors 25 29
Paying Taxes 70 65
Trading Across Borders 175 174
Enforcing Contracts 29 29
Resolving Insolvency 127 130
While this is a mixed bag of ranking to be sure, improved rankings in the areas of “Starting A Business”, “Getting Credit”, and “Protecting Investors”, seem to be promising signs that Mongolia is on the right track towards rebuilding its economy.
The burgeoning economy is undoubtedly enticing businesses from around to world to set up shop in order to take full advantage of the economic climate and the opportunities to be found in today’s Mongolia. However, before deciding to do business in Mongolia, because of the evolving nature of Mongolia’s economic laws and practices, and because of constant changes and reforms of Mongolia’s laws, and the potential for additional sudden changes in all of the rules, regulations and laws brought about by Mongolian law makers, competent legal advice should be sought out before a final decision to do business in Mongolia is made.
Hawkeye in China
– LEX Smith