Despite the fact that Mongolian legislation provides for a wide
range of legal forms of commercial entities (limited liability
company or LLC, joint-stock company or JSC and joint venture), in
practice, private businessmen and foreign investors mostly prefer
LLC or JSC. Representative office of foreign legal entities is also
common.
Limited Liability Company (LLC)
An LLC is the most frequently used form of a legal entity
established by one or more individuals or legal entities –
participants – who are not liable for its obligations while
bearing the risk of losses related to the company's activity to
the extent of their contributions (participatory interests). The
liability of the company is limited to its assets.
