Ulaanbaatar city authority fights corruption and supports businesses

2021-12-27 15:40:46

Ulaanbaatar /MONTSAME/  Mr. Sumiyabazar Dolgorsuren, Governor of the Capital City and Mayor of Ulaanbaatar, signed off on the decision to enable 74 types of trade and services activities to be carried out freely based on their registration starting from January 1st, 2022, in accordance with the capital city’s laws, standards, and requirements.

The 74 types of trade and services activities that can operate without permits given that they are registered with the tax authority and meet the relevant standards.

In the past many permits have been created, which were not regulated by law, but have been regulated through decrees, ordinances, and rules. With the increased number of permits and requirements, citizen’s ability to operate businesses became more difficult thus becoming more dependent on the government for income. . This has been one of the main reasons for increased government bureaucracy and increased the risk of corruption and misconduct by civil servants.

The capital's authority is taking active measures to prevent crimes by public officials to fight against corruption

Citizens and entities engaged in trade, production and services submit 7-12 types of documents to obtain permits/licenses. Considering the total number of entities, this amounts to nearly 168,000 documents that must be submitted. This means 168,000 signatures must be signed by the relevant authorities and thus inciting the risk of corruption by those signing. . With the Governor’s decision to eliminate these signatures, citizens no longer need to flatter someone or wait for signatures in order to operate their businesses.

Cost reduction

This decision will not only reduce the risk of corruption and misconduct by public officials but it will also significantly reduce the cost of obtaining/submitting documents. According to surveys, MNT 42 million is spent on stationery, MNT 149 million on transportation which means total of MNT 191 million is spent on documentation. Additionally, individuals and enterprises, seeking to start a business, spend MNT 41,994,000 per year on copying documents and another MNT 149,312,000 is spent on transportation. Therefore, the cost of coming and going to the five various government agencies for contracts, permits and other documentation related visits are also eliminated. There are other unaccounted costs such as meals, beverages and etc.


It will save time

In addition to the reduced costs and risks, it will also save time. Citizens and entities will no longer need to obtain documents from the three government agencies. For example, in the past, citizens needed to visit the Capital City Police Department, District Governor's Office, The Emergency Division of the capital city twice, and the District Tax office and the Landscaping Company at least once. One visit to these agencies and companies takes 3 hours of travel time. Overall, a citizen spends about 24 hours to sign a contract to operate in the capital city. From this we can see that, previously individuals and business enterprises had been spent a total of 447,936 hours inefficiently.

Positive impact on stress and traffic congestion

 The indirect effects of this decision for citizens include reduced stress levels, less time spent traveling to obtain/submit documents which reduced traffic congestion.


The capital city authority is supporting businesses

These decisions and changes, which have significant positive impacts on the businesses, are a clear indication of the authorities of Ulaanbaatar city supporting businesses.

.  The removal of such regulatory barriers and obstacles to operating business lay the foundation for economic recovery within the capital city.


Permits regulated by the law have not been revoked

The decision to eliminate 74 permits and documents required by the capital city does not mean that anyone can do anything. To clarify this point, around 70 permits/licenses in nine fields are still required under the Law on Business Licensing, the Law on Construction, the Law on Land, and the Law on Roads. For example, the requirement for licenses/permits to sell alcohol and tobacco are still valid. This is because the decision to revoke these licenses/permits, which are regulated by the law, are decided by Parliament. However, city authorities are actively working to ensure that the submission and approval process and requirements for these licenses/permits are transparent and simple.

Also, authorities are working towards eliminated various obstacles related to renewing these licenses/permits once they have been obtained.


Responsibilities of business enterprises

Following this decision, which aims to revive the economy and create a new culture in society, there is a possibility that it may result in some negative effects negative. For example, this decision may have adverse effects on public interest and may incite them to act unethically. However, along with the provision of operating businesses more freely, a higher level of responsibility and accountability is required. For example, when opening a restaurant, it is the business owners’ responsibility to ensure that the environment meets all the requirements such as ventilation, lighting, hygiene etc. Nightclubs must meet ventilation and safety requirements. If such requirements are not met, the relevant inspection agencies will ensure that necessary measures are taken. This is because it is important to ensure that whilst businesses are operating and earning revenues, they should not negatively affect the interests of consumers. Thus, going forward, it is important to ensure a environment where businesses can operate without any unnecessary pressure or demands, and that they keep to a high level of responsibility. 


The Responsibility of Citizens

On the other hand, citizens must make responsible choices. They must ask themselves whether their chosen services/products are of high quality and meets the relevant hygiene requirements. Citizens will need to become more responsible for their choices. This will enable businesses with poor services and poor products to be naturally pushed out of the market thus ensuring that there is a competitive market where businesses are continually improving their goods and services. Poor quality services and products have existed due to oversight by inspection bodies with conflicted interests inspecting on behalf of citizens in addition to them making misinformed choices. Now, citizens will have the ability to decide whether services/products in the market survive in the future. This is a new culture in society that all citizens should adopt.



А. 62 types of trade and services operations that can be contracted and certified by the District Governor’s Office:


• Wholesale center

• Warehouse stores

• Shopping center

• Large markets (construction materials, wood, vehicles, etc.)

• Department stores

• Hypermarkets

• Supermarkets

• Exhibition hall

• Outlet

• Boutique

• Minimarket

• Grocery stores

• Convenience store 

• Specialty goods store

• Shop

• express service stores (hereinafter referred to as “TUTS”)

• Seasonal, temporary trade activities with tents

• Recyclable material receiving points

Food production and services:

• Restaurant

• Bar (disco, billiards, karaoke, others.)

• Cafe

• Canteen / public and corporate /

• Fast food and chain restaurants

• Coffee shop

• Mobile fast-food services

Household services:

• Hairdresser

• Beauty

• Nail Salon

• Clothing tailoring and repair

• Shoe tailoring and repair

• Ordering and repairing household furniture

• Household electronics and electrical appliances repair

• Ordering and repairing gold, silver, and jewelry

• Bag ordering and repair

• Ordering and repairing glasses

• Repair of locks and keys

• Watch and clock repair

• Dry cleaning,

• Photography and video services

• Home cleaning services

• Moving services

• Goods rental services

Visiting services:

• Hotels

• Motels

• Tourist camp

• Camp

• Ger camp

Hygiene and fitness services:

• Public bathhouse

• Sauna

• Swimming pool

• Fitness center (fitness, spinning, aerobics, yoga, dance, etc.)

• Relaxation center / massage /

• Public toilets

Auto service:

• Auto repair 

• Tire repair

• Car wash

• Car lining

• Automotive, parts, oil and paint, batteries

• trade-in consumables such as ornaments and tires

• Car Parking (indoor, outdoor)

Game center:

• E-sports gaming center

• Children

Public housing services

B. 6 types of services licensed by the Capital City Tourism Department:

• Issuance of new hotel licenses

• Extension of hotel license

• Issuance of new motel licenses

• Extension of motel license

• Issuance of new licenses to operate in the field of tourist camps and resorts

• Extend licenses to operate tourist camps and resorts

C. 6 types of services approved by the Capital City Arts and Culture Department:

• New permits and permit extensions to operate in the field of cultural training centers /music, dance, drama, film, fashion, speech, acting, stage speech, public speaking, painting, photography, embroidery, makeup /

• Obtain and renew licenses for all types of screen and video cinemas

• Obtain and renew licenses for billiards, bowling, golf, and slot machines

• Obtain and renew license to operate a disco club

• Obtain and renew licenses to operate a karaoke

• Obtain and renew license to operate a strip club