Mongolia Adopts Its Law on Economic Freedom
Mongolia • Legal Alert No.07/2026 • September 2026
In Brief
On 3 July 2026, the Parliament of Mongolia adopted the Law on Economic Freedom, establishing the principle that business activities may be freely conducted unless expressly prohibited by law. The Law introduces a foundational legal framework aimed at limiting state intervention, protecting property rights, promoting fair competition, and safeguarding investors' rights.
The adoption of the Law resulted in amendments to 91 laws. Among these amendments are a number of significant reforms affecting business operations, including the simplification of the permit regime through the introduction of a notification-based framework for certain business activities, the establishment of an investor grievance resolution mechanism, and the removal of several restrictions applicable to foreign investment in specific sectors. These changes are expected to have a notable impact on the regulatory environment governing business activities in Mongolia.
The Law specifies certain actions prohibited in connection with state policy and administrative activities, including:
- Compelling businesses to participate in corporate social responsibility (CSR) activities;
- Requiring businesses, in the course of providing public services, to submit documents or supporting materials other than those prescribed by law or administrative normative acts; and
- Conducting inspections or oversight measures not expressly authorized by law or exceeding the statutory time limits established for such inspections and oversight activities.
