Author: Paralegal T. Munkhbat

Our law firm is pleased to announce that we are publishing a blog post on an important and useful topic for foreign investors and companies with foreign investment.

This article consists of the following sections.

1.     Obtaining the Investor Certificate

2.     Obtaining Visa Approval

3.     Stamping the Visa

4.     Obtaining a Residence Permit

5.     Costs

6.     Fines

1. Features and Categories of Class B Visas

Foreign investors, executive management of foreign-invested companies, and representatives of branches or representative offices of foreign legal entities apply for the Investor (Class B) Visa to travel to or reside long-term in Mongolia. This visa is divided into the following sub-categories:

·         B1 – Investor of foreign-invested enterprises;

·         B1-1 – Family member of an investors of foreign-invested enterprises;

·         B2 – Foreign national appointed as an investor’s representative or executive of a foreign-invested enterprises;

·         B2-1 – For a family member of a foreign national appointed as an investor’s representative or executive management of a foreign-invested enterprises;

·         B3 – Foreign national working as an executive or a representative of a foreign legal entity;

·         B3-1 – Family member of a foreign national working as an executive or a representative of a foreign legal entity.

In this context, “Family member” means someone with proof of foreign national`s husband, wife, partner, father, mother, grandfather, grandmother and children (under the age of 18).

The process of investing or being appointed as a manager of a company with foreign investment and residing in Mongolia follows the steps below, each of which will be briefly explained.

2. Obtaining the Investor Certificate

            An investor may make an investment in Mongolia in 2 ways. The first is to invest by wire transfer from abroad to a domestic account. In this case, the investor contacts the relevant bank and obtains a certificate confirming that the funds were received via wire transfer to prove the investment. If the company with foreign investment has not yet been established, the investor contacts a domestic bank to open a temporary account.

The second method is to bring goods and equipment across the border, in which case the investment is evidenced by customs registration and certificates.

            After investing, the investor, or the person appointed as manager of the relevant foreign-invested company, or the representative of the branch or representative office of the foreign legal entity obtains the Investor Certificate through the online system at https://e-business.mn/.

3. Obtaining Visa Approval

            After obtaining the Investor Certificate, the applicant applies to the Immigration Agency of Mongolia for Visa Approval.

            The following documents must be submitted electronically only.

a)    Official request from the inviting organization

b)    State registration certificate of the legal entity and company charter

c)     Tax and social insurance certificates for the last 3 years

d)    Company audit report

e)    Investor Certificate issued by the Investment and Trade Agency

f)      Power of attorney, employment ID, and national ID issued by the organization to the applicant employee

g)    Address verification

h)    And other required documents

Please pay special attention to correctly stating in the official request of the inviting organization the duration of the foreign national's stay in Mongolia, the place of visa issuance, and the sector of work.

Regarding address verification, the following must be noted. If the investor is residing in a rented property, a Lease Agreement must be provided. The Lease Agreement must be accompanied by the real estate certificate. Additionally, if an employee or any person signs the lease on behalf of the foreign national or the inviting organization, documents identifying that person and a power of attorney must be attached. It is also advisable to obtain a certificate from the local district governor confirming that the foreign national resides at that address.

After compiling the documents, submit them through the Immigration Agency of Mongolia's online system at https://isf.mn/mn/service.

4. Stamping the Visa

            After obtaining the Visa Approval, it is valid for 60 days, within which the visa must be stamped.

The foreign national may have the visa stamped at: a) a Mongolian diplomatic mission abroad, b) a border checkpoint, or c) an airport.

Please note that if the location for visa stamping changes, a new Visa Approval must be applied for.

5. Obtaining a Residence Permit

            Let us introduce the final step — obtaining a residence permit.

To do this, the inviting organization must prepare the investor's photo, passport copy, and official request (which must detail the area of activity, the type of residence permit being requested for the invited national in Mongolia, and the duration of stay in Mongolia) and send them to the Immigration Agency of Mongolia via the online system.

The inviting organization is required to submit an application for the foreign national's Residence Card within 21 calendar days of their entry into Mongolia.

The Class B visa is initially issued for a period of up to 1 year. Thereafter, extensions of up to 3 years at a time can be granted, depending on the operational stability and continuity of the company, as well as the foreign national's clean criminal record.

6. Costs

            Now let us review the total costs for all of the above steps.

1)    Visa Approval service fee: MNT 2,500

2)    Visa stamping service fee: $5 + Single-entry visa fee: $45

3)    Residence permit stamp fee: MNT 135,000 + Service fee: $7

The above estimate is the minimum cost to bring one foreign national through regular processing (not expedited). Please note that additional costs may arise, such as notarizing documents, obtaining powers of attorney, certified translations, and travel expenses.

7. Deadlines and Fines

1)    After obtaining Visa Approval, it is valid for 60 days, within which the visa must be stamped. There is no fine for this deadline, but if it expires, a new Visa Approval must be obtained.

2)    The residence permit application must be submitted within 21 calendar days of the invited national's entry into Mongolia. If the application is not submitted within 21 days, a fine of MNT 10,000 per day of delay will be imposed in accordance with the Law on Violations.

For further advice and information related to this article, please contact us at the address below.

E-mail: contact@akp.mn

Tel: 7704-1414