BRIEF INFORMATION OF LAW OF MONGOLIA ON LICENSING

The State Great Khural (the Parliament) approved the revised version of the Law on Licensing on June 17, 2022 and shall become effective from 01 January 2023. Member of Parliament H. Gankhuyag worked as a leader of the working group on this draft law. The Law on Licensing of business activity, which is valid today, was approved on February 01, 2000, and was amended 69 times in the past. The newly approved Law on Licensing has 35 articles in 9 chapters and provides for the issuance of more than 360 licenses in 14 areas of special licenses and 12 areas of common licenses.

The following activities of 14 fields shall be carried out with special licenses (Article 8.1 of the Law on Licensing):

  1. Environment;
  2. Banking and non-banking financial services;
  3. Construction, urban development and public utilities;
  4. Defense;
  5. Road and transport;
  6. Financial, economic, customs and investment;
  7. Cultural and education;
  8. Mining and heavy industry;
  9. Communication and information technology;
  10. Employment activities;
  11. Legal and other common issues;
  12. Food, agriculture and light industry;
  13. Health; and
  14. Power.

In accordance with Article 8.2 of the Law on Licensing, the 12 fields for activities with common licenses are subject to the above-mentioned 14 fields, except the defense and energy.

List of special licenses:

Authorized person to grant a special license:
1. Activities in the environment:
  1. The Government;
  2. State central administrative body in charge of issues with the special protection areas ;
  3. Governors of the capital and province as well as free zone administrators in the free zones;
  4. Governors of the capital and province;
  5. Forest department or area ranger;
  6. Environmental department of the respective province or capital.
2. Activities in banking and non-banking financial services:
  1. Bank of Mongolia;
  2. Financial Regulatory Commission.
3. Activities in construction, urban development and public utilities:
  1. Central state administrative organization in charge of construction;
  2. Central state administrative organization in charge of geodesy and cartography;
  3. Central state administrative organization in charge of land issues;
  4. Central state administrative organization in charge of urban development;
  5. Council for regulating the operation, maintenance and service of water supply and sewerage in cities and towns.
4. Activities of defense:
  1. The Government;
  2. The highest organization of military professional management of Air Command of Armed Forces or Directorate General of Border Protection;
5. Activities in road and transport:
  1. The Government;
  2. Central state administrative organization in charge of road issues;
  3. Central state administrative organization in charge of road transport;
  4. Central state administrative organization in charge of railway transport;
  5. Central state administrative organization in charge of waterway transport;
  6. State administrative organization responsible for civil aviation.
6. Activities in financial, economic, customs and investment:
  1. Member of the Government in charge of financial and budget matters;
  2. Central customs management organization.
7. Activities in cultural and education:
  1. Central state administrative organization in charge of education;
  2. Central state administrative organization in charge of cultural affairs;
  3. Governor of the respective province or capital;
  4. Office of the governor of the sum, or district;
  5. National Council for Educational Accreditation.
8. Activities of mining and heavy industry:
  1. The Government;
  2. Central state administrative organization in charge of petroleum issues;
  3. Central state administrative organization in charge of geology and mining;
  4. Central state administrative organization in charge of heavy industry;
  5. State administrative organization responsible for state specialized inspection;
  6. Nuclear Energy Commission;
  7. Governor of the respective province or capital.

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