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  Investment Application
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iconIntroduction of Investment Registration | iconBusiness Type | iconProcedures for Company Registration

Introduction of Investment Registration

Different requirements apply for each type of business entities. Therefore, we provide a comparison list for various business entities, and then an overall introduction to investment registration depending on the type(s) of business entity identified by the investor(s). Please click directly to link to the related website for more information, if you are interested in establishing a business entity in any of the special zones and obtaining information on related investment incentives.

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Business Type

A company and a firm

Business Type Items Company Firm
Minimum capital requirement No minimum requirement, but the capital still needs to be examined and certified by a local CPA and covers at least the incorporation cost (Note 1) Not required.
Extent of shareholders/responsible person/partners' liability Shareholders are liable to the extent of their capital contribution to the company. The responsible person or partners of the business are liable for any liabilities arising from the business operation.
Business expansion A registered company name is approved by the Ministry of Economic Affairs. This name is legally protected and its usage is nationwide. It is advantageous for business expansion. A registered business name is approved by a local (county or city) government. The name protection and usage are limited.
Qualification of being a juristic person A company is qualified as a juristic person. Not qualified as a juristic person.
Requirement for accounting books and vouchers. Must keep complete set of accounting books and accounting records to document its operating results. Not compulsorily required. The profit and loss is reflected directly in income individually reported by the responsible person or partners.

Note 1: If the business entity engages in activities that require a special permit or approval, the authorities may set a higher capital requirement.

Comparison of a subsidiary, a branch office and a representative office

Business Type Items Company ( Company Limited by Shares/Limited Company ) Branch Office of a Foreign Company Representative Office
Permitted activities General trading, sales and manufacturing General trading, domestic sales and manufacturing Legal acts and liaison activities
Profit-Seeking Enterprise Income Tax(T) I: Taxable income;T:Tax liability
.If I≦NTD120,000, T=0
.If NTD120,000<I≦NTD181,818, T=(I-120,000)*1/2
.if I>NTD181,818,T=I*17%
Same as a company Not applicable
Profit remittance tax Withholding tax of 20%; however, the 10% surtax paid by the company on its undistributed profits may be credited against the withholding tax. None Not applicable
Tax incentives under the Statute for Industrial Innovation Applicable Not applicable Not applicable
Extent of the liability of a shareholder/head office Shareholders are liable to the extent of their capital contribution to the company. Foreign head office is liable for any liabilities unsettled by the branch. Not applicable
Requirement for shareholder(s)/responsible person Must have at least 1 corporate shareholder or 2 individual shareholders ( 1 or more individual or corporate shareholders in the case of a limited company ). All shareholders may be foreign nationals residing outside of Taiwan Not required to have shareholders but required to register a responsible person Not required
Requirement for director(s) Must have at least 3 directors ( between 1 and 3 in the case of a limited company ). All directors can be foreign nationals residing outside of Taiwan. Not required Not required
Requirement for supervisor(s) Must have at least 1 supervisor ( no requirement in the case of limited company ) who can be a foreign national residing outside of Taiwan. Not required Not required
Minimum capital requirement or minimum operating capital requirement No minimum requirement, but the capital still needs to be examined and certified by a local CPA and covers at least the incorporation cost (Note 1) No minimum requirement, but the capital still needs to be examined and certified by a local CPA and covers at least the incorporation cost (Note 1) Not required
Sources of capital contribution Capital contribution can be made in cash or thru capitalization of retained earnings or capital surplus. Initial operating capital must be remitted in Taiwan from the offshore head office. Subsequent contribution of additional operating capital can be made through remittance from offshore head office or thru capitalization of the branch retained earnings. Not applicable
Filing of annual income tax return Required Required Not required
Withholding tax on salaries, rental income, professional fees, and other income payments. Required Required Required
Allocation of administrative expenses by parent / head office Subject to a 20% withholding tax. The deductibility of this allocation for tax reporting purposes will depend on the adequacy of the supporting documents thereon. Normally not subject to 20% withholding tax and can be treated as a tax deductible item if certain criteria are met. Not applicable
Keeping of accounting books and records Required Required Required
Liquidation of the entity following completion of dissolution Required Required Not Required
Purchase of real property and automobiles in the name of subsidiary / branch / representative Permitted Permitted Not Permitted

Note 1. If the business entity engages in activities that require a special permit or approval, the authorities may set a higher capital requirement

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Procedures for Company Registration

For Local Investor(s)

Option 1: Setting up a General Company

  • Apply for search and reservation of comIpany name and business scope. Please provide 1 to 5 company names in Chinese in their order of priority and proposed business scope, the company names will be surveyed by the competent authority in the order of priority and only one name will be reserved if it is available .(Please click here to link the website )
  • Apply for company registration.
  • A pre-approval is required before applying for company registration if the company intends to conduct restrictive business which is subject to additional requirements and regulations ruled by the competent authority.

  • Apply for business registration.
  • Apply for factory registration ( note- this is not applicable to non-manufacturing business)
  • Apply for registration of importer/exporter (note -for trading business only. (Please click here to link the website for online application)

Option 2: Setting up a firm

  • Apply for search and reservation of firm name and business scope.
  • Apply for firm registration.
  • A pre-approval is required before applying for firm registration if the firm intends to conduct restrictive business which is subject to additional requirements and regulations ruled by the competent authority.

  • Apply for business registration.
  • Apply for registration of importer/exporter (note -for trading business only. ( Please click here to link the website for online application )

For Overseas Chinese and Foreign Investor(s)

Foreign Investment is subject to the "Negative List for Investment by Overseas Chinese and Foreign Nationals" issued by the investment Commission, MOEA. ( Please click here to link to the website )

Option 1: Setting up a General Company

  • Apply for search and reservation of company name and business scope. Please provide 1 to 5 company names in Chinese in their order of priority and proposed business scope, the company names will be surveyed by the competent authority in the order of priority and only one name will be reserved if it is available . ( Please click here to link the website )
  • Apply for Overseas Chinese/ Foreign investment approval. ( Please click here to link to the website to apply for Identification Certificate of Overseas Chinese. Note - This is only applicable to Overseas Chinese investor(s))

    Processing time

    • Investment in nonrestrictive industries and the investment amount or capital increase is not more than NT$500 million--- 2 to 4 days.
    • Investment in nonrestrictive industries and the investment amount (or capital increase) is not more than NT$1500 million---3 to 5 days.
    • Investment in restrictive industries and the investment amount (or capital increase) is more than NT$1500 million or mergers, acquisitions and spin-offs ---10 to 20 days.
    • Investment in Mergers and Acquisition or extraordinary case----20 to 30 days.
  • Apply for approval for examination of investment capital.
  • Apply for company registration.
  • A pre-approval is required before applying for company registration if the company intends to conduct special business which is subject to additional requirements and regulations ruled by the competent authority.

  • Apply for business registration.
  • Apply for factory registration.( Note-This is not applicable to a non-manufacturing business)
  • Apply for registration of importer/exporter -for trading business only. ( Please click here to link the website for online application).

Option 2: Setting up a firm (for individual investor(s) only)

Foreign Investment is subject to the "Negative List for Investment by Overseas Chinese and Foreign Nationals" issued by the investment Commission, MOEA. ( Please click here to link to the website )

  • Apply for search and reservation of firm name and business scope.
  • Apply for Overseas Chinese/ Foreign Investment Approval ( Please click here to link to the website to apply for Identification Certificate of Overseas Chinese. Note - This is only applicable to Overseas Chinese investor(s))

    Processing time

    • Investment in nonrestrictive industries and the investment amount (or capital increase) is not more than NT$500 million---2 to 4 days.
    • Investment in nonrestrictive industries and the investment amount (or capital increase) is not more than NT$1500 million---3 to 5 days.
    • Investment in restrictive industries and the investment amount (or capital increase) is more than NT$1500 million or mergers, acquisitions and spin-offs ---10 to 20 days.
    • Investment in Mergers and Acquisition or extraordinary case----20 to 30 days.
  • Apply for approval for examination of investment capital.
  • Apply for firm registration.
  • A pre-approval is required before applying for firm registration if the firm intends to conduct special business which is subject to additional requirements and regulations ruled by the competent authority.

  • Apply for business registration.
  • Apply for registration of importer/exporter-for trading business only ( Please click here to link the website for online application ).

Option 3: Setting up a Representative Office of a Foreign Company

  • Apply for reporting designated representative of a foreign company for handling legal matters in the R.O.C.
  • Apply for a tax code.

Option 4: Setting up a Branch of a Foreign Company

The proposed business scope of a Branch Office of a Foreign Company is subject to the "Negative List for Investment by Overseas Chinese and Foreign Nationals" issued by the investment Commission, MOEA. ( Please click here to link to the website )

  • Apply for search and reservation of comIpany name and business scope. Please provide 1 to 5 company names in Chinese in their order of priority and proposed business scope, the company names will be surveyed by the competent authority in the order of priority and only one name will be reserved if it is available. ( Please click here to link the website )
  • Apply for Investment Approval and Recognition of Foreign Company and Registration of a Branch Office.
  • A pre-approval is required before applying for branch registration if the branch intends to conduct special business which is subject to additional requirements and regulations ruled by the competent authority.

  • Apply for business registration.
  • Apply for factory registration( Note- This is not applicable to a non-manufacturing business).
  • Apply for registration of importer/exporter -for trading business only. ( Please click here to link the website for online application )

If you are interested in Special Zones, please link their respective websites directly for more information.

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( 2013/06/25 Update )

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Invest in Taiwan
Department of Investment Services

8th Fl., 71 Guanqian Rd., Taipei 100-47, Taiwan, R.O.C.
Tel : +886-2-23892111 - Fax : +886-2-23820497/8 Hot Line : +886-2-23914950 ( Investment Information )