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Taiwan Company Incorporation

       A foreigner wishes to establish an enterprise in Taiwan or to participate in the management of a existing Taiwan corporation, the first thing is to get the approval from the Taiwan investment Commission, MOEA (Ministry of Economic Affairs). Once it is approved by MOEA, it would be possible to enter into the process of the company registration or formation.

       At present, most of industries in Taiwan are allowed to be invested by the foreigners, but there are few business or industries that are prohibited from holding or investing by the foreigners. The basic principals for the prohibited industries are stated as below:

  • 1.Which may negatively affect national security, social safety, good customs and practices, or national health; and
  • 2.which are prohibited by the law.
More specifically speaking, except for the industries listed on "Negative List for Investment by Overseas Chinese and Foreign Nationals" which are issued by the investment Commission, the others industries are permitted to be invested by the Foreign Investor. 

         If the investor or the capital source comes from China, the allowed invested industries and application procedures are different with the general foreigners due to the special relationships between Taiwan and China. You can contact us for further information.

 

(1) Legal forms for foreign investors

        The foreign investors could incorporate a propritor business, partnership or company in Taiwan. The regulations and responsibilities between the One-man business or Partnership and the Company are different, we summarize the simple comparison for your reference as below:

 Business Type Item
 Taiwan Company
 Sole Propritor or
 Partnerships
Capital Requirement
Not Required
 
Not Required
Liability
 Liable to the extent of their contribution to the company.
Liable for any liabilities arising from the business operation.
Company Name 
Approved by the Ministry of Economic Affairs. 
Approved by the local city or county government.
Being a juristic person
Qualified
disqualified
Bookkeeping
Must
Must
Income Tax Rate
17% Corporate Income Tax
5%-40% Personal Income Tax

 












(2) Company types in Taiwan for the foreigners  

 

      Regarding to the company entity form, there are three types for operating business in Taiwan. It's the incorporation of a Taiwan company, Taiwan branch or Taiwan office.
     The comparision of 
the right and liability for the different business types are stated as following:

Business Type
Item
Taiwan Company Taiwan Branch Taiwan Office
Business Activity Trading, sales or manufacturing Trading, sales or manufacturing
Sales function are not allowed
Income Tax Rate 17% Same as a Company Not applicable
Profit Remittance Tax Withholding tax of 20% Not applicable Not applicable
Tax Incentives Applicable Not applicable Not applicable
Shareholders' Liability Liable for the extent of capital contribution Foreign head office is liable for any liabilities unsettled by the branch. Not applicable
Minimum Shareholder Number
Must have at least 1 corporate shareholder or 1 individual shareholders.
Not Required Not Required
Minimum Director Number
Must have at least 1 directors (between 1 and 3 in the case of a public share company)
Not Required Not Required
Minimum Supervisor Number
Must have at least 1 supervisor (no requirement in the case of a private limited liability company)
Not Required Not Required
Minimum Capital Requirement
No minimum requirement
No minimum requirement
Not Required
Sources of Capital Contribution
Cash or in kind with the property, patent or goodwill.
Cash 
Not applicable
Tax rate impose to the undistributed profit 10% Not applicable Not applicable
Annual Tax Return Required Required Not applicable (It's required if you withheld the Income tax )
Withholding Tax impose for some services or expenses Required Required Required
Allocation of Administration Expense by the Parent Company
Subject to a 20% withholding tax rate.
Normally not subject to 20% withholding tax rate and can be treated as a tax-deductible item if certain criteria are met.
Not applicable
Accounting Records Required Required Required
Liquidation/dissolution  Required Required Not applicable
Purchase of Real Estates or Automobiles in the name of the company/ branch/office Permitted Permitted Not permitted
 

(3) Flowchart of procedure for Invest in Taiwan

(4) Our Services
We assist clients with every aspect related to the formation of a Taiwan Company Limited by Shares for Manufacturing, Consulting or Trading Business, including:
1.Get Investment Approval from the Investment Commission.
2.Get the letter of of capital verification from the Investment Commission.
3.Get the auditor's report for capital verification.
4.Process the company registration to the Ministry of Economic Affairs (“MOEA”).
5.Prepared Memorandum and Articles of Incorporation.
6.Process the tax registration to the Tax Authority.
7.Process the Exporter/Importer Trading Registration to the Bureau of Foreign Trade. 
8.Prepare the VAT Chop, Company seals and managing director's Chop
Additional permits and certificates are required for certain businesses such as food related business, restaurant, telecommunication etc.
Special permits and certificates may be required for particular industry. These requirements are vary by the different industries, so it is not possible to provide a fee quotation until we are provided with details.
 Additional Services
1.Advise on Incorporation of Taiwan Company, Including Tax Matters, Business Scope, Regulations Compliance and Company Structuring. 
2.Arrange an appointments with Governmental Officials to inquiry of specific issues. 
3.Coordinate with Other Service Providers, such as Environmental Engineers or Lawyers, etc.  
 Annual Maintenance service
We assist clients with the following recurring day-to-day corporate maintenance tasks:
1.Maintenance of Company’s Statutory Books
2.Arrange for Mandatory Statutory Filings in accordance with local requirements
3.Arrange for and Prepare Necessary Documents for Annual General Meeting of Shareholders
4.Arrange for and Prepare Necessary Documents for Annual General Meeting of Directors
5.Provision of Regular Update/Status Reports on Corporate Secretarial Services Issues
6.Timely Informing of Due Dates and Deadlines 
7.Other tailor made services