Ulaanbaatar city
Law on Permitting /Revised draft/

Article 1. Objective of the Law
1.1. 1.1 The purpose of the law is to regulate the relation with respect to issue permit for conducting certain business, or possess and use State and public properties that may adversely affect national security, public interest, human health, environment as well as to suspend, revoke, cancel issued permit
Article 2. Legislation on Licensing
2.1. Legislation on Permitting shall consist of the Constitution of Mongolia, the Civil Code, and the General Law of State Registration, the Law on the List of Licenses, this Law and other acts of legislation enacted in conformity therewith.
2.2. If an international treaty to which Mongolia is a party is inconsistent with this law, then the provisions of the international treaty shall prevail.
Article 3. Definitions of the Law
3.1. In this law the following terms shall have the following meaning:
3.1.1. "Permit" means a right granted to a person or legal entity by authorized body to conduct certain types of activities and to possess and use public property according to Law.
3.1.2. "Authorized body to grant permit" (hereinafter referred to as an authorized body) means State organization, administrator or a body who has been transferred rights to grant a permit authorized by the Law.
Article 4. Applicability of the law
4.1. The general requirements to the permit holder, permit Issuance, Extension, Suspension, Restoration, Cancellation of Permits specified in the Law on Approval of the Permit List shall be established by this Law.
4.2. The following relations shall not be regulated by this law.
4.2.1. To grant Land holding right
4.2.2. To grant immigrant permission to foreign citizen, non-resident person, to issue Mongolian visa as a right to pass Mongolian border, to extend, suspend, revoke of issued visa.
4.2.3. Authorize to issue right to establish contract for procurement of goods and services with state and local funds and transfer
4.2.4. To issue a right for establish concession contract and transfer
4.2.5. The patent and copyright authorize the rights and geographical indications and trademark rights of the trademark owner
4.2.6. To organize demonstration, meeting and public event
5.1. In implementing this law, following principles shall be followed beside specified in 1.2 Article of Constitution of Mongolia
5.1.1. To protect national security, national and public interests, human life, health and environment
5.1.2. Not discriminate, provide equal opportunity, and to be open and transparent
5.1.3. To be accountable and prompt
5.1.4. To promote economic growth and fair competition
5.1.5. Create a favorable business environment
5.1.6. Promote to introduce international standards and requirements
5.2. Person or legal entity may operate business in territory of Mongolia complying with law and standard requirement other than prohibited or specified in Law on permit list approval
5.3. The purpose of reducing possible risk to national security, public interest and for prohibiting unfair competition, number of permits to issue per year and permit issue and extend process can be restricted
5.4. The time and procedure for implementing the restrictions set forth in Article 5.3 of this Law shall be established by the State Great Khural based on the Government's proposal.
Article 6. Prohibited activities
6.1. Following activities are prohibited in territory of Mongolia.
6.1.1. Narcotics, to plant or sell drugs, unless otherwise stated by law
6.1.2. Unless otherwise provided by law , to manufacture, sell, serve, cross by state border opium, preparations containing drugs, preparations containing drugs, psychotropic substances and their preparations 6.1.3 Organizing, advertising and promoting any forms of pornography;
6.1.3. Unless otherwise provided by law, organize casino, gambling activity
6.1.4. To import hazardous waste to the Mongolia for purpose of use, store, temporarily relocate, demolish and transport
6.1.5. Transport of hazardous waste through the Mongolian border
6.1.6. Profit-seeking business through fraudulent multi-tiered marketing or financial pyramid.
6.1.7. Unless otherwise provided by law, create new type permits and issue or shall be prohibited.
6.2. The types of permits to be issued by Authorized body shall be defined by the Law.

7.1. The authorized person shall issue the permit by document printed on security paper with approved form.
7.2. Following items shall be reflected on permit
7.2.1. Name and address of the Authorized person granted permit
7.2.2. Permit holder’s name and address
7.2.3. Type of the Permit and tis code
7.2.5. The type of permit implementing activity, and implementing territory ( location )
7.2.6. Number of Permit and issued date
7.2.7. Valid duration of permit and expiration date
7.2.8. Authorized body’s signature and seal
7.3. Government shall approve form of the permit
7.4. The Permit document to be prohibited to transfer, deposit, damage and demolish deliberately
Article 8. Permit classification
8.1. Permits shall classified as following
8.2. Engaged activities which may harm the national security of Mongolia, international cooperation, and peace or right of property possess or use described in this paragraph shall be issued by Exclusive Permit.
8.3. Engaged risky activities which may harm public interest, environment, public health or right to possess or use property described in this paragraph shall be issued by Special permit
8.4. Professional services, to conduct the activity needed to be exercised restrictions because of public interest even though its activity and risk level are low and the right to possess and use the properties with the indications specified in this section shall be granted by common permit
8.5. The type of permission referred to in paragraph 8.1 of this Law shall be defined by the Law on Approval of the List of Licenses.
8.6. Exclusive permit shall be prohibited to grant to individual.
8.7. Special and Common permits to be prohibited to issue to individual shall be determined by applicable law.
9.1. Permit -type codes shall be used for purpose to maintain the unified registry of records, to issue statistical information, to provide reference and to organize online permit issuance.
9.2. Type of activity and goods classification list shall be used for defining code of permits.
9.3. The code of permits shall be defined by law.
10.1. Permits shall be issued for term specified as below:
10.1.1. Exclusive permit up to 5years
10.1.2. Special permit up to 10 years
10.2. Taking into account the risks of national security, public interest, environment and public health, term of particular permit may be defined less than that set forth in Article 10.1 of this law.
10.3. If particularly specified in the law, permit may be issued on a one time basis.

11.1. Following authorized bodies shall make decision to issue permit depending on its classification.
11.1.1. Exclusive permits –Member of Government
11.1.2. Special permit – Member of Government, representative of the organization which established by Parliament or specifically established by the law, Governor of aimag, city, the person who transferred the right according to law
11.1.3. Common - representative of authorized state administrative, Governor of the soum, bag, khoroo, the person who transferred the right according to law.
Article 12. Power of the authorized body
12.1. Authorized body has following rights:
12.1.1. To make decision to issue, extend, revoke, suspend license pursuant to its affiliation.
12.1.2. To monitor if license condition complies with requirement
12.1.3. To obtain report from permit holder
12.1.4. In case of specified in the law, to approve administrative acts and enforce
12.1.5. To adopt recommendations regarding the implementation of permits
12.2. The authorized body shall have the following obligations:
12.2.1. To exercise the rights in accordance with the rules provided by law
12.2.2. To collect information in the database stated in Article 25 and to disclose to the public openly and transparent
12.2.3. To provide information and comments related with permit procedure by citizen's and legal entity’s request
Article 13. Transfer of authorization to issue permit
13.1. Transfer of authorization to issue Exclusive permit shall be prohibited
13.2. If the law specifies otherwise, the authorized person may transfer the rights to issue special and ordinary licenses to legal entities as set forth 7.1.3 and 7.1.7 of Law on legal entities registration and to relevant state bodies or officials.
13.3. If the authorized person has transferred his / her right to grant permission, the decision shall be posted on the organization's website and shall be taken measures to inform to the public .
13.4. The damages caused illegally transferred authorization to issue permit to others shall be reimbursed by the transferor.

Article 14. Rights and Obligations of Permit holder
14.1. The permit holder has following common rights
14.1.1. To engage in the activities specified on license and use the property in accordance with relevant procedures
14.1.2. Apply to extend license period and obtain information, reference, explanation related with renewal, suspension, cancelation and termination of the permit
14.1.3. Submit a complaint regarding the activities and decisions of the authorized person
14.1.4. Request an advice and information related with implementing permit pursuant to applicable rule
14.1.5. Others set forth in the law
14.2. The permit holder has following common obligations
14.2.1. To provide an accurate report and related reference and information with authorized person/body in timely
14.2.2. To work comply with the conditions and requirements set forth by the law
14.2.3. In case prohibited or restricted by law, no other activities which excluded permit term and condition shall be allowed
14.2.4. To notify related Tax Office immediately upon received permit permission and mark it on taxpayer's certificate
14.2.5. To work comply with Mongolian legislation and national standards
14.3. Additional rights and obligations may be defined by Law to the Permit holder depending on peculiarity of operation
14.4. Permit holder's rights and obligations shall be commenced on the day issued permit.
14.5. The permit shall be prohibited to sale, to gift or pledge to others
Article 15. Common requirements for Permit holder
15.1. Permit holder individual or legal entities shall meet the following requirements:
15.1.1. To be with full legal capability
15.1.2. The conditions and requirements stated in the law are fully met
15.1.3. To be registered as a taxpayer
15.1.4. No be with taxation debt
15.2. Specific conditions and requirements for taxpayers are subject to applicable law
Article 16. To enter a contract with the Holder of permit
16.1. In the case of specified in law, the authorized body/ person may enter a contract with the permit holder purpose of implementing the special requirements and conditions.
16.2. Procedures for contracting and concluding contracts shall be governed by applicable laws

17.1. Individual or legal entity shall submit a request to obtain permit to authorized body/person. A request may be submitted by written or online
17.2. The request specified in 17.1 of this law must be meet with the requirements specified in Law of Mongolia on "To submit application and complaint to state organization and authorized officials from citizens"
Article 17. To submit application for obtaining permit
17.1. The applicant must reflect the name and type of permit, conducting activity relevant with it, the purpose and ground for using/ possessing public properties and rights in the request and must attach following documents
17.2. Documents evidencing the general and specific conditions and requirements provided by law
17.3. If the applicant is a legal entity, a copy of the state registration certificate. If an individual, a copy of ID card, and other similar documents
17.4. Evidence of with no tax debt
17.5. The competent authority shall make a special note when receiving the request and shall include the information and address of the applicant, the form, request submitted date and time, the summary of the request, and list of the accompanying documents.
Article 18. Procedure to resolve the request
18.1. The authorized person shall review the request for the following periods:
18.1.1. Exclusive permit request within 30 days after received
18.1.2. Special permit request within 20 days after received
18.1.3. Common permit request within 7 days after received
18.2. Authorized body shall appoint powered working group to review and conclude the request purpose of making decision to issue exclusive and special permit or not.
18.3. The Authorized body shall review the request and issue one of the following decisions
18.3.3. If the authorized person refused to grant permit, the decision shall be sent to the applicant within 3 work days after the decision has been made. The reason of rejection and its ground shall be clearly stated in decision.
19.1. Authorized body shall review the request and issue a decision to grant a permit If it’s considered that a request meets the requirements set forth in Article 15 of this law and other relevant laws
19.2. If authorized body issued a decision to grant a permit, the decision shall notify to the applicant and hand over document of permit to the applicant within 5 work days.
19.3. The authorized body shall deliver and register the decision of issue permit to the State Registration Office in accordance with rule stated in law.
19.4. If the response to the request for a common permit has not delivered within the period specified in this law, the permit considered to be issued.
19.5. Unless otherwise provided by law, the procedure of issuance and extension of particular type of permit may be simplified or carried out through a selection process.
19.6. Procedures set forth in Article 19.5 of this law shall be approved by the Government.
19.7. It shall be prohibited to disassemble, separate and expand the scope of permit specified in the Law on Approval of the List of Permit
19.8. Unless otherwise provided by law, the permit to be issued to one person or one legal entity
19.9. If provided by law, the right to conduct certain types of activities shall be granted only to other relevant permit holder
20.1. Less than one month prior to expiration of permit, the permit holder may apply for an extension of the permit by submitting an application to the authorized body
20.2. The authorized body shall resolve within 10 days after received application specified in
20.2. If it needed to be examined and investigated by professional organization in relation to the request for extending the permit, the period specified in 20.2 of this law may be extended by 10 days.
20.3. If a special or common permit holder complies the requirements stated in the law and not breached what stated in article 15 of this law it may extend the term of the permit upon its/his request.
20.4. If a special or common permit holder complies the requirements stated in the law and not breached what stated in article 15 of this law it may extend the term of the permit upon its/his request.
20.5. The term of the permit shall be extended by the period of initially issued.
20.6. If holder of a permit has repeatedly breached the terms and conditions set by this law, the decision to refuse to extend shall be issued, and the reason of rejection shall be stated clearly.
20.7. The authorized shall issue written decision on extend the term of permit or refused to extend permit and deliver to the applicant within 3 working days
20.8. If the applicant disagrees with the decision referred to in Article 20.7 of this Law, he / she may file a complaint to the senior official of the authorized official

Article 21. To suspend and restore/ refresh/ the permit
21.1. In following condition, the authorized body may suspend the permit up to 3 months period
21.1.1. A permit holder submitted a request
21.1.2. Permit holder has failed to meet the general and specific requirements specified in law
21.1.3. The report and data didn't submitted within the specified period or not provided according to requirements specified in law
21.1.4. Ceased its operation within one year since issued permit
21.2. Authorized body shall notify to permit holder that there were grounds provided in Article
21.2.1. of this law. The issue to suspend the permit shall be resolved within 30 days after decision delivered to permit holder.
21.3. The permit shall be restored when the grounds and condition for suspension of the permit has been cleared
Article 22. To revoke the permit
22.1. The permit holder revealed that has no legal capacity
22.2. It has been proven that false documents have been submitted for obtaining permit
22.3. Permit has granted on other unlawful grounds
22.4. If authorized body has discovered the grounds set forth in Article 22.3 of this law, the authorized body shall issue decision to revoke permit and inform to permit holder immediately
22.5. The authorized body shall submit the decision referred to in Article 22.2 of this law to the state registration office and register according to the law.
22.6. Permit holder shall have right to lodge a complaint according to specified in law if disagree with the decision which revoked permit
22.7. If the authorized person revokes the license, the applicant shall not receive the license application in accordance with the re-invalid decision within 6 months.
22.8. 1 The permit shall be revoked on the following grounds:
22.9. The permit holder has been determined that does not meet the conditions and requirements specified in the law by the authorized body' decision
Article 24. Consequences of suspension, revocation, and cancellation permit
24.1. During the suspension of permit, conducting activity as per permit shall be suspended and fulfillment of contract entered with others may be stopped temporary Revocation of permit shall be the grounds for terminate the contract entered with others of permit holder related with conducting activity according to permit.
24.2. Revocation of permit shall be the grounds for terminate the contract entered with others of permit holder related with conducting activity according to permit.
24.3. The damage to others caused by revocation of permit shall be reimbursed by person / legal entity/ who possessed the permit
24.4. If the permit is revoked or considered to be invalid , the defined conducting activity of permit holder and the permit granted for the other activity related to the permit will be terminated

Article 25. Integrated data base of the Permit registration
25.1. The State Registration Authority shall be maintain an integrated database of permit which obliged to register permit holder and issued , extended, suspended, cancelled, revoked permits and consolidate information , to provide statistical digital information.
25.2. The State Registry shall provide public, organizations, and citizens with information of registry database.
25.3. State Registration information of special and common permits shall be open and transparent to the public
25.4. Information relating to exclusive permits shall be provided on the basis of the consent of the Permit holder if the information pertained as its confidentiality according to specified in the law
25.5. Reference and information may be provided electronically
25.6. The rule to maintain an integrated database shall be approved by Government
Article 26. Permit monitoring council
26.1. Permit monitoring council (hereinafter referred to as the Council) shall consist of 9 members consisting of representatives of relevant public and professional organizations. The Chairman of the Board shall be a Head of Cabinet Secretariat.
26.2. The Council shall carry out the following functions:
26.3. To provide the authorized body to issue an register permit with integrated methodology management
26.4. Conduct regular monitoring and evaluation on the issue of permit and its effect and issue comments and conclusions.
26.5. To issue proposals and conclusions on the amendment of the Law on Permit and Law on to approve Permit list To issue proposals and conclusions on the amendment of the Law on Permit and Law on to approve Permit list
26.6. Census of permits shall be conducted annually, issuing conclusions on limiting the quantity of Permits to be issued for a given year, or extension of Permits for a particular year.
26.7. The Council may involve the experts to have their proposal, recommendations on the law implementation and to create new permit and issue.
26.8. The Council shall have a staff office. The staff office shall work in the structure of the Cabinet Secretariat.
26.9. The Government shall approve the procedures for the appointment and dismissal of the members of the council and of the Council's working procedures.
Article 27. To issue a conclusion on amendment to the classification and type of permit
27.1. The Council shall issue conclusion on amend the classification of permits, create a new type of permit or eliminate type permit
27.2. The following issues shall be included in Council's conclusions:
27.3. Whether the draft law submitted to the Great Khural is meeting with existing legislation
27.4. Whether necessity and string requirement of permit type and classification based on policy, coherent with risk level and evaluation
27.5. Positive and negative impacts on economy and business activities
27.6. Expenses from the state budget and citizens and legal entities due to changes in the classification of the permit
Article 28. Settlement of Complaints
28.1. Complaints regarding decision of the authorized person shall be resolved submitting to high rank officer, complaint regarding decision of the authorized higher level officer shall be resolved submitting complaint to court.
Article 29. Liabilities for Violation of the law
29.1. The action of a public official in breach of this Law shall be imposed by the Law on Civil Service if it does not contain a criminal offense.
29.2. A person who violates this law shall be subject to the Penalties Act or the Law on Violations.
30.1. This law shall enter into force on the first day of July of 2019

Project users

 . Зохицуулагч /Administrator/

. Зохицуулагч /Administrator/

Initiator of the draft law

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