Law “On support of small and medium enterprises and services (revised version)”.

The purpose of this Law is to diversify and develop small and medium-sized enterprises and services, improve their competitiveness, increase jobs, and increase their share in the economy. The purpose of this Law is to regulate relations establishing the scope, form, management, and legal basis for regulation of state support for small and medium-sized enterprises and services. This Law shall apply to domestic small and medium-sized enterprises and service enterprises registered in the state register with the aim of making a profit, permanently located and operating in the national territory. Small and medium-sized enterprises and service providers shall be intended business entities operating in the manufacturing, trade and service sectors with up to 200 employees and annual sales revenue of up to 2.5 billion tugriks. Cluster means a business entity that cooperates in a coordinated manner in terms of production and service objectives, types, directions, and geographical locations, in the form of cooperation or diversification. Small and medium-sized enterprises and service providers shall operate in the form of companies, cooperatives, or partnerships. A business entity that meets the conditions specified in this Law shall submit its application for registration as a small and medium-sized enterprise or service provider to the state administrative body responsible for small and medium-sized enterprises, or to the authorized person responsible for the relevant issue in the locality, in writing or electronically. The Government shall grant support to small and medium enterprises in the following ways: (a) financial support as credits and loans on preferential terms; (b) loan guarantees; (c) provision of equipment financial leasing services and lease interest support; (d) provision of tax relief and tax exempt; (e) support of the sale of products, works and services through public procurement; and (d) provision of business consulting services.