Written in Mongolia and read by professionals
in over 160 countries worldwide

Wednesday, July 6, 2011

Mongolia Briefing is a magazine and daily news service about doing business in Mongolia. We cover topics relating to the Mongolian economy, the market in Mongolia, foreign direct investment and Mongolian law and tax. It is written in-house by the foreign investment professionals at Dezan Shira & Associates

Opening a Business in Mongolia Part IV: Partnerships and Joint Ventures

By Elena Fehrbach

Nov. 20 – According to the Law on Partnerships of Mongolia, there are two types of partnerships that can be established:

  • Unlimited Partnerships
  • Limited Partnerships

The principal difference between the two types is the level of liability the partners have within the partnership.

Unlimited partnerships provide equal levels of liabilities to all partners, which means partners are jointly and severally liable for all the obligations of the partnership without limit to the capital contributed by them.

Limited partnerships have at least one partner with unlimited access to the liabilities of the partnership. Other partners’ liabilities are limited by the amount of capital contributed by them to the partnership.

Both types of partnership may conduct profit- generating activities within Mongolia and internationally.

Joint Ventures
Mongolian legislation does not have a provision for registration of a joint venture as a separate legal entity. In case two legal entities have decided to establish a joint venture, the procedure is to establish a limited liability company (LLC), where each of the joint venture companies has a share in establishment capital and assets.

The LLC is the most common type of legal entity in Mongolia among 100 percent Mongolian and foreign- invested companies. Registration procedures and submission documents required to establish an LLC are the same regardless of the number of shareholders in a future LLC.

This entry was posted in Business, Legal and Regulatory. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *

Dezan Shira & Associates provide a range of services for companies looking to undertake foreign direct investment into Asia, These include corporate establishment, accounting, tax, payroll, audit and due diligence. To learn more about the firm, please contact one of our specialists at mongolia@dezshira.com, download our corporate brochure or visit at us www.dezshira.com

Dezan Shira & Associates, Twenty years of Excellence

The Asia Briefing Bookstore

Our best selling legal, financial, tax and regional guides to Asia business, industry reports and more…
Click here to view all titles now

China Briefing Book Store China Briefing Book Store China Briefing Book Store China Briefing Book Store China Briefing Book Store China Briefing Book Store China Briefing Book Store China Briefing Book Store China Briefing Book Store


MSE Top 20 Index