Formalization of the Informal Economy Project

ILO implemented the Formalize Your Business training programme in Mongolia

Following the adaptation of the FYB to the Mongolian context and the launch of this programme in 2024, the project has implemented the FYB training programme in collaboration with the Mongolian Employers’ Federation (MONEF) in some districts and provinces of Mongolia.

9 June 2025

FYB training participants, Songino Khairkhan district © ILO 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 from 23 to 24 January 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
© 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
© 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, Gantsetseg launched “Tsegts Ermuun” LLC and received her state registration certificate in March 2025.
  • In Baganuur, Enkhtuya founded “Agidar Zayakh Khargui” LLC, filed her first tax report, and began barcode registration for her dairy products.
  • In Songinokhairkhan district, 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
© 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
© ILO Mongolia
FYB participant presenting the teamwork

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