Home | Databases | WorldLII | Search | Feedback Laws of Mongolia

LAW OF MONGOLIA ON OPERATIONAL LICENSE FOR BUSINESS OPERATION

LAW OF MONGOLIA
February 1
st
2001, Ulaanbaatar
ON
OPERATIONAL LICENSE FOR BUSINESS OPERATION
CHAPTER ONE
GENERAL PROVISIONS
Article
1. The Purpose of the Law
1.1. The purpose of this Law is to regulate matters relating to obtaining, suspending,
revocation of Licenses
for operation of business entities which could be
potentially dangerous to the national security, public interest, health, environment
and for business activities, which require the specific condition and qualification.
Article 2. The Legislation on Licenses for Business
Operation
2.1. Legislation on Licenses for business operation consist of Civil Law, this Law and
other legal acts adopted in conformity
with this Law.
2.2. Otherwise stated in the International agreement of Mongolia then the provision of
this Law will prevail.
Article
3. Definitions
3.1. In this Law, the following terms shall have the following meanings:
3.1.1 "Licenses for Business Operation" (hereafter
"the License") means legal
document obtained from the legal institution to person or to the profit/ non profit
legal entity for specific
purpose of business operation according to the scheduled
time, condition and requirement.
3.1.2 "Licensee" means legal entity obtaining
the License from the corresponding
organization for specific purpose of business operation.
CHAPTER TWO
OBTAINING, SUSPENSION AND
REVOCATION OF LICENSES
Article 4. License
4.1. The License will include the followings:
4.1.1. The name of organization obtaining
the License;
4.1.2. The name and address of the Licensee;
4.1.3. The type of business operation;
4.1.4. The period of holding the
License;
4.1.5. The condition and requirement for business operation through the License;
4.1.6. The registration number and date
of issue of the License;
4.1.7. The signature and the stamp of the legal person of the Licensing
organization.
Article 6. The period
of validity of the License and it's extension
6.1. Otherwise stated in the Law the period of validity of the License will be up to
three
years.
6.2. Otherwise stated in the Law the License shall be extended not less than the original
date of duration of License.
6.3. Otherwise stated in the Law and the condition indicated in 13.1. of this Law is not
occurred, the License shall be extended
on the basis of application of the
Licensee.
6.4. In case of failure of a condition and requirement of License the License shall
not be
extended.
Article 9. The principles and requirements for obtaining the License
9.1. The corresponding legal entity will follow
the following principles regarding the
obtaining the License:
9.1.1. provide the national security and the defense of the country
and protect the
social and the legal interest;
9.1.2. create the favorable condition for business operation;
9.1.3. transparent and
responsive;
9.1.4. obtain the license only if it's indicated in the Law.
Article 11. The documents prepared for obtaining the Licenses
11.1. The Licensee shall attach the following documents to it's application for obtaining a
License:
11.1.1. Application for a License
(indicate more specifically the type of
production, service and duration);
11.1.2. If the Licensee is a legal entity then attach
the Certificate of registration;
11.1.3. If the Licensee is an individual then attach the notarized copy of
Residence identification
card;
11.1.4. The certificate of state stamp fee.
Article 12. Obtaining a License
12.1. The Licensor shall review the application
and other related documents and
otherwise stated in the Law the Licensor shall response within 21 working days
from the date of receipt
of the application for a License.
12.2. In case of refusal of the License the justification for refusal shall be sent in a written
form.
12.3. If it's requires the Licensor have right to ask the related legal organization for
auditing and conformative analysis
of the documents of the Applicant.
12.4. In case of conformitive analysis of the documents the date of review shall be
extended up
to 14 days.
Article 13. Suspension of the License
13.1. In case of failure of the date, condition and requirements the Licensor shall suspend
the
License up to 3 months based on the statement of the auditing organization.
13.2. The Licensor shall inform the decision of a suspension
to the Applicant and to
Taxation Unit within three day in a written form.
13.3. When the grounds for suspension of the License are
eliminated the Licensor shall
renew the License.
Article 14. Revocation of the License
14.1 The Licensor shall revoke the license
in the following cases:
14.1.1. on request of the Licensee;
14.1.2. the Licensee is liquidated;
14.1.3. in case of using the fraudulent
documents in obtaining the License;
14.1.4. the Licensee failed to follow the condition and requirements;
14.1.5. in case of non
implementing the requirements to eliminate the failure
during the suspension of the License.
14.2. The Licensor shall inform the
decision of a revocation to the Applicant and to
Taxation Unit within three days in a written form.
Article 15. The type of licensed
business operation
15.8.1 Construction and operation of nuclear power facilities;
15.8.3. Construction of energy facilities and the
grid lines;
15.8.4. Production, transmission, dispatching, distribution, supply and sale of the energy;
15.8.14.Installation of a
lifting track, elevator and service operation;
15.8.15.Installation, maintenance and service of boiler, pressurized container and
the
pipelines;
15.8.18. Service for liquid gas;
15.9. Production and trade;
15.10.8. Production, maintenance and sale of the measuring
equipment;
15.10.9. Monitoring, regulation and service of measuring equipment;
15.10.10.Service for quality guarantee
CHAPTER THREE
OTHERS
Article 17. Resolution of disputes of Licenses
17.1. The disputes in obtaining the License shall be resolved by the Top Authority
of the
Licensor and in case of disagreement with decisions they may appeal to court.
Article 18. Liabilities for violation of Legislation
on obtaining the License
18.1. If a breach of legislation on obtaining the License does not constitute a
criminal offense, the state
inspector or a judge shall impose the following
penalties:
18.1.1. Confiscation of sales proceeds and imposition of fines of
togrog
20,000-50,000 on the official in charge and togrog 100,000-
250,000 on legal entities for carrying out unlicensed activities
indicated
in the Articles 15, 16 of this Law;
18.1.2. In case of breach of Article 7.2. of this Law the
confiscation of sales proceeds and
imposition of fines of togrog
20,000-50,000 on individuals, togrog 100,000-250,000 on legal
entities;
18.1.3. In case of breach of
Article 5.3. of this Law imposition of
fines of togrog 20,000-50,000 on individuals, togrog 30,000-
60,000 on official in charge,
togrog 100,000-250,000 on legal
entities and revoce the License;
18.1.4. In case of conducting the illegal documents in obtaining
the
License the confiscation of sales proceeds and imposition of fines
of togrog 20,000-50,000 on individuals, togrog 100,000-250,000
on legal entities;
18.1.5. In case of breach of Articles 6.3., 11.2., 12.1.,12.4,13.2.,
14.2. of this Law imposition of fines of
Togrog 30,000-60,000 on
official in charge.
Article 19. Effectiveness of the Law
19.1. This Law shall become effective on the 1
st
of July, 2001.