ILO - International Labour Organization

06/09/2025 | Press release | Distributed by Public on 06/08/2025 20:46

ILO Formalization of the informal economy project implemented the Formalize Your Business (FYB) training programme in Mongolia.

The ILO trained 28 trainers in a five-day workshop, including hands-on sessions with entrepreneurs. Among them, 21 trainers participated in a capacity-building workshop held on January 23-24, 2025. Following this, we conducted 10 FYB training sessions across five districts of Ulaanbaatar city and five provinces: Tuv, Zavkhan, Dornod, Khentii, and Selenge. A total of 241 participants attended these sessions. Participants were representatives from informal businesses and self-employed individuals.
Each training lasted three days, totalling 15 academic hours, according to the established guidelines. The sessions were facilitated by two to four FYB trainers. Guest speakers invited from the local tax and social insurance offices. These officials provided valuable insights and provided good support on issues faced by the participants.

© ILO Mongolia
Myadagmaa, a state inspector from the Selenge province Tax Department, is presenting the tax regulation electronically for the FYB participants on the tax website.


Key Achievements

  • Additional session in February 2025 deepened their knowledge in areas of labour law, occupational safety and health, social security, and decent work.
  • 10 training sessions were held in total: 5 in Ulaanbaatar city and 5 in provinces-some located over 1,000 km from the capital city.
  • 241 informal workers trained directly (218 of them women, 7 with disabilities)
  • Some trainers now deliver their own sessions independently. Khaan Bank, one of Mongolia's largest commercial banks signed an agreement with trainers to deliver FYB training to their borrowers.
© ILO Mongolia
Provinces and cities where FYB training has been reached

The FYB programme inspired several success stories.

  • Participants continued sharing knowledge and experiences through a Facebook group created by participants
  • In Selenge province, a tax specialist helped 12 participants with personal income tax reports online.
  • In Dornod, Ms. Gantsetseg launched "Tsegts Ermuun" LLC and received her state registration certificate in March 2025.
  • In Baganuur, Ms. Enkhtuya founded "Agidar Zayakh Khargui" LLC, filed her first tax report, and began barcode registration for her dairy products.
  • In Songinokhairkhan district, Ms. Ariuntuya established "Nomin Bileg" LLC, registered with tax and social insurance offices, opened a bank account, and obtained a company stamp and digital signature with trainer guidance.

FYB Beneficiaries testimonials:

© ILO Mongolia
Erdenetsetseg, business owner in Selenge province

I run a small business in Selenge province. I became a person with a disability in 2012, but I never gave up and have continued to live by using my skills and knowledge. After attending the three-day FYB training, I came to understand the importance of social protection through formalizing a business. Before the training, I had limited knowledge, but it helped correct my understanding of social insurance and taxes. Now, I'm considering registering a company and hiring more people to grow my business.

© ILO Mongolia
FYB participants at Sukhbaatar district training

Ms Ariumaa, business owner in Bayangol district. (VIDEO)

My name is Ariumaa, and I am very satisfied with the training I just attended. It provided exactly the information I needed, as I am currently working toward formalizing my business. Until now, I wasn't sure where to start or how to proceed with the formalization process. This training helped me understand the initial steps, including how to communicate and what actions to take. A recent incident made it clear to me why formalization is necessary. I received a large order from an organization, but I was unable to fulfill it because they only contract with formally registered businesses. I had offered to issue an invoice and submit an eBarimt (electronic bill) as an individual, but that wasn't acceptable to them. This became a major challenge. Although I didn't secure the order, the experience motivated me to explore the benefits and potential drawbacks of formalizing my business. Around the same time, the FYB training was announced and fortunately, I had the chance to attend. I'm grateful for the practical guidance this training provided, and I feel more confident about taking the next steps toward formalization.

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