Legal Alert: Comparison of Investment Contracts and the Procedures for Concluding Them in Mongolia and the Republic of Kazakhstan
The Government of Mongolia concludes an investment contract with an investor who intends to invest more than MNT 500 billion, based on the investor’s request and for the purpose of ensuring a stable business environment. By entering into an investment contract, the Government provides legal guarantees to the investor, stabilizes the tax environment, and extends various forms of support for the implementation of the investment project. The investment agreement pursues the same objective as stabilization certificates issued under the Investment Law; however, it has the advantage of being concluded for a longer term than the period for which stabilization certificates are granted. Accordingly, entering into an investment agreement creates favorable conditions for investors and can be regarded as a mechanism for attracting investment.
One of the few countries that an authorized authority of the country concludes investment agreements with investors similar to Mongolia is the Republic of Kazakhstan. The Republic of Kazakhstan does not have a specific law on investment; instead, investment relations are governed by the Entrepreneur Code of the Republic of Kazakhstan, adopted in 2015.
