Local incorporation is required for doing business in Mongolia. Branches of foreign companies are generally not permitted. Branches of foreign banks and insurance companies are, however, permitted according to the relevant sector-specific legislation.
"Article 3. Definition of terms
1) Terms used in this Law shall be understood in the following meaning: […]
3.1.3."foreign investor" means a foreign legal entity or individual /a foreign citizen or stateless person who is a non-resident in Mongolia and a Mongolian citizen residing permanently in a foreign country/ that invests in Mongolia;
3.1.4."domestic investor" means a legal entity or individual registered in Mongolia /a Mongolian citizen and a foreign citizen or stateless person who resides permanently in Mongolia/ that makes an investment in Mongolia; [...]
3.1.5."business entity with foreign investment" means a business entity incorporated according to the legislation of Mongolia and not less than 25 percent of the total share capital is held by a foreign investor, and the investment amount by each foreign investor equals or more than USD 100,000 or its equivalent in Mongolian tugriks;
3.1.6."representative office of a foreign business entity" means a person that has no legal entity status and was established in Mongolia by a foreign legal entity for the purpose of having representation based on a power of attorney;[...]" [Law On Investment, 1 November 2013, amended]
Law On Investment, 1 November 2013, as amended
[<a href="https://legalinfo.mn/en/edtl/16532311213281">Law</a>]