Mongolia

Financial Reporting Obligations for Companies in Mongolia

1. Registry for Financial Statements Submission

In Mongolia, companies must submit their financial statements to the General Authority for State Registration (GASR) — locally “Улсын бүртгэлийн ерөнхий газар” ( https://burtgel.gov.mn/ ). Financial statements can be submitted electronically via the GASR's portal.

Public Access to Financial Statements:

In Mongolia, financial statements of listed companies are publicly available and can be accessed through the Mongolian Stock Exchange (MSE) ( https://www.mse.mn/en ).

However, financial reports of private companies (LLCs and other non-listed entities) are not publicly accessible. Such reports are filed with regulators but are not disclosed to the public unless voluntarily published by the company.

2. Legal Forms Required to Publish Financial Statements

  • Хязгаарлагдмал хариуцлагатай компани (LLC - Limited Liability Company): The most common legal form, used by both local and foreign businesses, which limits liability to the assets of the company and not the personal assets of the owners.
  • Хувьцаат компани (JSC - Joint Stock Company): Companies that issue shares, with open JSCs listed on the stock exchange, and are subject to more stringent reporting and auditing requirements.
  • Төрийн өмчит компани (State-Owned Company): Entities where the government holds the majority or total ownership.
  • Түншлэл (Partnership): A form used for partnerships where liability can be unlimited or limited, depending on the agreement.
  • Гадаадын хөрөнгө оруулалттай компани (Foreign Invested Company): A legal form designed for foreign investors, where at least 25% of the ownership must be held by foreign entities, typically structured as an LLC.

Other forms, like Representative Offices and Permanent Establishments, do exist, but these are not independent legal entities and are generally not required to submit financial statements as they do not conduct profit-generating activities directly.

So, while the LLC and JSC are the most prominent forms for financial reporting, some types such as sole proprietorships or family enterprises are not obligated to submit full public financial disclosures.

3. Audit Requirements for Financial Statements

According to the Auditors Activities Act, the following entities must audit their financial statements:

In Mongolia, the requirement for auditing financial statements depends on several factors related to the company's legal form, size, and specific activities. The table below provides an overview of the audit requirements based on legal forms and criteria:

Legal Form (Mongolian and English) Audit Requirement Criteria
Хувьцаат компани (Joint Stock Company) Mandatory All JSCs, especially those listed on the stock exchange, must audit their financial statements
Хязгаарлагдмал хариуцлагатай компани (Limited Liability Company) Conditional LLCs must audit if they exceed turnover of MNT 50 million, total assets of MNT 100 million, or employ over 50 people
Гадаадын хөрөнгө оруулалттай компани (Foreign-Invested Company) Mandatory All foreign-invested companies are required to audit their financial statements
Төрийн өмчит компани (State-Owned Company) Mandatory All state-owned entities must undergo audits, regardless of size
Түншлэл (Partnership) Conditional Partnerships are required to audit if they meet the financial or employee thresholds specified for LLCs

The Audit Law of Mongolia requires any business entity that exceeds specific thresholds—such as turnover, total assets, or number of employees—to undergo an audit. Foreign-invested companies and joint stock companies are always subject to audit. Additionally, companies undergoing restructuring or liquidation must also be audited.

4. Stock Exchange Requirement

Companies listed on the Mongolian Stock Exchange (MSE) are required to publish their financial statements on the MSE website ( https://www.mse.mn/ ).

5. Deadline for Submitting Financial Statements

The deadlines for submitting financial statements are as follows:

  • Annual Financial Reports: By February 10 of the following year.
  • Consolidated Financial Statements: By March 1 of the following year for companies required to consolidate their financial statements.

6. Partial Financial Statements

There are no specific requirements for submitting partial financial statements in Mongolia. All financial reports must be comprehensive.

7. Consequences of Late Submission

Failing to submit financial statements on time can result in fines, legal penalties, and the potential striking off from the business registry. The fine amount and legal actions depend on the severity of the delay and the entity's legal form.

8. Requirements for Foreign-Owned Branches and Newly Established Companies

Foreign-owned branches are subject to the same financial reporting and auditing requirements as domestic companies. Newly established companies must submit their first financial statements at the end of the year in which they were registered.

Sources

Source Link
General Authority for State Registration (GASR) https://burtgel.gov.mn/
Law on Accounting and Auditing — official legal portal https://legalinfo.mn/
Mongolian Stock Exchange (MSE) https://www.mse.mn/
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