Steps for Company Registration in Taiwan
How to register a company in Taiwan?
In this article, we provide steps for setting up a Taiwanese company by foreign & Mainland China investors:
I. Steps & Timetable for Company Registration in Taiwan
1. Reserve Your Company Name
2. Submit application to the Ministry of Economic Affairs Investment Commission (MOEAIC) for foreign investment approval. (7 to 30 days)
3. Open Bank Account As A Preparatory Step and Remit Money
4. Formal CPA certification regarding sufficient Invested Capital
5. Submit the remittance of capital statements to the MOEAIC for verification and obtain an approval letter.
6. Registerthe Company at the Department of Commerce, MOEA (for those with paid-in capital of at least NT500 million) or local city government (for those with paid-in capital of under NT500 million) (7 to 30 days)
7. Register at Tax Office As A Tax-Paying Entity
Generally, it takes about 14 to 60 days for the Taiwanese authorities to complete their reviews on a foreign investment case. Since the authorities have the sole discretion on reviewing the case, the investment application may be rejected such that the timetable is for reference purposes only.
II. Governing Regulations
foreign investment is governed by:
--“Statute For Investment By Foreign Nationals”
For investment from Mainland China:
--“Act Governing Relations Between Peoples Of The Taiwan Area And The Mainland Area” and “Measures Governing Investment Permit to the People of Mainland Area”.
III. Business Scope/Restrictions
For foreign investors refer to
--“Negative List for Investment by Overseas Chinese and Foreign Nationals”.
(Please refer to the Investment Commission Of The MOEA website for the newest list.)
For Mainland China investors
--“Positive List for Investment from Mainland China”.
IV. Issues for Investment from Mainland China
Juridical person investors are required to review their juridical person status to properly clarify whether or not they are regarded as “Mainland Investors” in accordance withArticle 3 of the “Measures Governing Investment Permit to the People of Mainland Area”. The investor’s status shall be in accordance with “The Interpretation of the Standard for Determining Whether a Third-Area Company Is an Investor of the Mainland Area”.
If the juridical investor is regarded as a “Mainland Investor” as prescribed by Article 3 of the “Measures Governing Investment Permit to the People of Mainland Area,” the juridical person investor is required to tender an investment application pursuant to “Investment Application by the People of Mainland Area” and is subjected to the provisions of penalty as stated in Article 93-1 of the “Act Governing Relations between the People of the Taiwan Area and the Mainland Area”.
If you have any further queries, please contact us for more details on this issue. We are more than happy to assist.
Before investing in Taiwan, we strongly suggest foreign enterprises to consult a professional firm (and relevant agencies) to understand the investment structure, business scope and legal risks that are involved--specifically to clarify the overall process of relevant investment in Taiwan, comply with the local law, and to utilize corporate resources in an effective manner.
The top-tier team of Yeh Law Group consists of law school professors (both current and former), an attorney and journalist who worked for The Financial Times and The Economist, and local Taiwanese attorneys.
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