Business Indicators

Note: Doing Business 2009 rankings have been recalculated to reflect changes to the methodology and the addition of two new countries.

The challenges of launching a business are shown below. Included are: the number of steps entrepreneurs can expect to go through to launch, the time it takes on average, and the cost and minimum capital required as a percentage of gross national income (GNI) per capita.

This section identifies the bureaucratic and legal hurdles an entrepreneur must overcome to incorporate and register a new firm in Mongolia.

The country data appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2009.

For more information please visit the Doing Business Page on this topic

Shown below are the procedures, time, and costs to build a warehouse, including obtaining necessary licenses and permits, completing required notifications and inspections, and obtaining utility connections.

This section looks at the procedural requirements for building a standardized warehouse in Mongolia.

The country data appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies.

For more information please visit the Doing Business Page on this topic

The difficulties that employers face in hiring and firing workers are shown below. Each index assigns values between 0 and 100, with higher values representing more rigid regulations. The Rigidity of Employment Index is an average of the three indices.

This section explores the regulation of employment in Mongolia.

The country data appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2009.

Employing workers indices are based on a detailed survey of employment regulations that is completed by local lawyers and public officials. Employment laws and regulations as well as secondary sources are reviewed to ensure accuracy. The table below shows the main indicators for employing workers. They include:

• The rigidity of employment index – a simple average of the difficulty of hiring index, the rigidity of hours index, and the difficulty of redundancy index.The difficulty of hiring index, which measures the applicability and maximum duration of fixed-term contracts and minimum wage for trainee or first-time employee.
• The rigidity of hours index, which measures the scheduling of nonstandard work hours and annual paid leave.
• The difficulty of redundancy index, which measures the notification and approval requirements for termination of a redundant worker or a group of redundant workers, obligation to reassign or retrain and priority rules for redundancy and reemployment.
• The firing cost, which measures the notice requirements, severance payments and penalties due when terminating a redundant worker, expressed in weeks of salary.

For more information please visit the Doing Business Page on this topic

The ease with which businesses can secure rights to property is shown below. Included are the number of steps, time, and cost involved in registering property.

This section records the full sequence of procedures, time, and cost involved in registering property in Mongolia. The Doing Business project assumes a standardized case of an entrepreneur who wants to purchase a piece of property in the periurban area of the economy’s largest business city. The property consists of land and a building, is already registered, and is free of title dispute. The process of property registration is complete once the property title has been transferred to the buyer’s name, so that the buyer is able to use the property for expanding business, as collateral for new loans, or, if necessary, to sell it to another business.

The country data appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2009.

For more information please visit the Doing Business Page on this topic

Measures on credit information sharing and the legal rights of borrowers and lenders are shown below. The Legal Rights Index ranges from 0-10, with higher scores indicating that those laws are better designed to expand access to credit. The Credit Information Index measures the scope, access and quality of credit information available through public registries or private bureaus. It ranges from 0-6, with higher values indicating that more credit information is available from a public registry or private bureau.

This section measures the legal rights of borrowers and lenders and the sharing of credit information in Mongolia It explores how well collateral and bankruptcy laws facilitate lending as well as the coverage, scope, quality, and accessibility of credit information available through public and private registries.

The country data appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2009.

The table above includes the following information on getting credit:

• The Depth of Credit Information Index, which measures rules affecting the scope, accessibility and quality of credit information available through either public or private credit registries. The index ranges from 0 to 6, with higher values indicating the availability of more credit information, from either a public registry or a private bureau, to facilitate lending decisions.
• The percentage of individuals and firms listed by either a public or private credit bureau with information on repayment history, unpaid debts, or credit outstanding from the past 5 years.
• The Strength of Legal Rights Index, which measures the degree to which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. The index ranges from 0 to 10, with higher scores indicating that collateral and bankruptcy laws are better designed to expand access to credit.

For more information please visit the Doing Business Page on this topic.

The indicators below describe three dimensions of investor protection: transparency of transactions (Extent of Disclosure Index), liability for self-dealing (Extent of Director Liability Index), shareholders’ ability to sue officers and directors for misconduct (Ease of Shareholder Suits Index) and Strength of Investor Protection Index. The indexes vary between 0 and 10, with higher values indicating greater disclosure, greater liability of directors, greater powers of shareholders to challenge the transaction, and better investor protection.

This section looks at the strength of minority shareholder protections against directors’ misuse of corporate assets for personal gain in Mongolia.

The country data appearing on this page comes from a survey of corporate lawyers and is based on securities regulations, company laws, and court rules of evidence. It was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2009.

The table above lists the main indicators for protecting investors. They are:

• The Strength of Investor Protection Index, which is the average of the Extent of Disclosure Index, the Extent of Director Liability Index and the Ease of Shareholder Suits Index. The index ranges from 0 to 10, with higher values indicating more investor protection.The Extent of Disclosure Index, which measures the transparency of transactions. The index ranges from 0 to 10, with higher values indicating greater disclosure.
• The Extent of Director Liability Index, which measures the liability for the use of corporate assets by company insiders for personal gain. The index ranges from 0 to 10, with higher values indicating greater liability of directors.
• The Ease of Shareholder Suits Index, which measures shareholders’ ability to sue officers and directors for misconduct. The index ranges from 0 to 10, with higher values indicating greater powers of shareholders to challenge the transaction.

For more information please visit the Doing Business Page on this topic.

The data below shows the tax that a medium-size company must pay or withhold in a given year, as well as measures of the administrative burden in paying taxes. These measures include the number of payments an entrepreneur must make; the number of hours spent preparing, filing, and paying; and the percentage of their profits they must pay in taxes.

This section addresses the taxes and mandatory contributions that medium-sized domestic companies in Mongolia must pay in a given year, as well as measures of the administrative burden of paying taxes and contributions.

The country data appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2009.

The table above shows the main indicators for paying taxes. They are:

• the total number of payments per year;
• the time it takes to prepare, file, and pay (or withhold) the corporate income tax, the value added tax and social security contributions (in hours per year); and
• the total tax rate, which measures the amount of taxes and mandatory contributions payable by the business in the second year of operation, expressed as a share of commercial profits.

For more information please visit the Doing Business Page on this topic.

The costs and procedures involved in importing and exporting a standardized shipment of goods are detailed under this topic. Every official procedure involved is recorded – starting from the final contractual agreement between the two parties, and ending with the delivery of the goods.

This section covers the procedural requirements for domestic businesses in Mongolia to export and import a standardized cargo of goods by ocean transport. Every official procedure for exporting and importing the goods is recorded along with the time and cost necessary for completion.

The country data appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2009.

For more information please visit the Doing Business Page on this topic.

The ease or difficulty of enforcing commercial contracts is measured below. This is determined by following the evolution of a payment dispute and tracking the time, cost, and number of procedures involved from the moment a plaintiff files the lawsuit until actual payment.

This section looks at the efficiency of contract enforcement in Mongolia by following the evolution of a sale of goods dispute between two domestic businesses and tracking the time, cost, and number of procedures involved in the process, from the moment the plaintiff files the lawsuit until actual payment.

The country data appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2009.

The table above shows the three main indicators for enforcing contracts. They are:

• the number of procedures from the moment the plaintiff files a lawsuit in court until the moment of payment,
• time, in calendar days, to resolve the dispute, and
• cost in court fees and attorney fees, where the use of attorneys is mandatory or common, expressed as a percentage of debt value.

For more information please visit the Doing Business Page on this topic.

The time and cost required to resolve bankruptcies is shown below. The data identifies weaknesses in existing bankruptcy law and the main procedural and administrative bottlenecks in the bankruptcy process. The recovery rate, expressed in terms of how many cents on the dollar claimants recover from the insolvent firm, is also shown.