Investment in Taiwan

Foreign nationals (including companies) or overseas Chinese making investment in Taiwan is governed by the Statute for Investment by Foreign Nationals (SIFN) and Statute for Investment by Overseas Chinese (SIOC), respectively. The competent authority is Ministry of Economic Affairs (MOEA).

The foreign investor may hold 100% of the equity ownership of the subsidiary.  All of dividends and interest may be remitted out of Taiwan. This is an important consideration for the very profitable companies.

Since 1963, Taiwan has continuously selected and designated land in different cities and counties for industrial purposes. Among more than 70 developed industrial estates, there are 10 Economic Processing Zones (EPZ) and 4 main science-based industrial parks, one of which is located in Yi-Lan and still under planning. Besides those industrial districts, most of the German companies establish their offices in Taipei.

Since 25 years we have been advising German companies what investment strategy their business in Taiwan should take and what further steps are necessary.

In this connection we can offer a full service for setting up a

• Representative office
• Branch office
• Corporation, subsidiary

Representative Office

A foreign company which appoints its representative to perform "juristic acts" in connection with its business operations in Taiwan must apply to the MOEA to register such person as a "legal representative" of the company. If the company's representative will be residing most of the time in Taiwan, the company should establish a representative office and report the location of the office. The representative office may not be established until the application to register the representative has been approved.

Branch Office

A branch office of a foreign company is recognized as a business entity. This makes it very different from the form of non-profit-seeking activities of representative offices.

A branch office is required to bring money into Taiwan as working capital. It is expected to generate profit and to pay the Republic of China taxes on such profit. A branch office is allowed to conduct almost any business activities which a Taiwan corporation could conduct. It may provide general services (including import services) for its head office and for affiliated companies.

Taiwan does not impose a branch tax on the remittance of net profit after tax to the branch office's foreign head office.

Corporation / Subsidiary

Taiwan's law divides companies into four types which are different from one another by the number of shareholders and the extent for which they are liable for the obligations of the company.  The most frequently used company forms are the limited company and the company limited by shares:

1. Limited company

A limited company is one without shares.  It is owned by at least 1 hareholder.  In addition, at least 1 director shall be registered.

The minimum capital of a limited company is NT$500,000. 

2. Company limited by shares

A company limited by shares issues share stock.  It requires at least 2 individual shareholders or 1 corporate shareholder.  3 directors and 1 supervisor are also required.

The minimum capital of a company limited by shares is NT$1 million.

The subsidiary may be formed as a Joint venture, which would require more documents and legal supports from professional lawyers. For some cases, CPA might as well be necessary to get involved before the joint-venture corporate been formed. For further supports, please contact us.