Company incorporation in Taiwan

Company registration in Taiwan can be done with the help of various advisory groups and agencies that can assist with licensing, banking solutions, and workplace rental solutions. There are several corporate structures in the country: Unlimited Company (UC), Unlimited Company with Limited Partners, Limited Liability Company (LP), Limited Liability Company with Tax Residence (LLC) or Limited Liability Company, Free Zone- LLC, Public Company (PLC), Representative Office and Branch Office. The best use of a tax resident LLC is to sell all products and services, the free zone LLC is best for manufacturing and export trade, the best purpose of the PLC is to secure public funding, the representation is good when it comes to marketing and Research is about, and the best performance of the branch within the framework of the implementation of specific projects.

In general, there are some basic steps to take when starting a business in Taiwan. The pre-incorporation includes the agreement to be reached on the proposed company name, director and shareholder details, as well as the initial share capital amount and licensing requirements.

LLC Formation
LLC is the most common corporate structure in Taiwan. A limited liability company is generally a corporation organized by one or more shareholders. Each shareholder of such a corporate structure is liable for the company in the amount of the sum contributed by him.

The incorporation process requires actions such as company name reservation (which can be done with the help of the Taiwan Ministry of Economy (MODEA)), tax registration (with the Taiwan Revenue Agency by attending a tax interview), approval of investments, and processing of license applications and account opening. Therefore, Taiwan’s company incorporation process includes the preparation of documents (by submitting the articles of incorporation), approval of foreign investment, opening of a capital account (along with deposit of the company’s share capital), and approval of capital transfer (by submission of proof of approval of the capital transfer). Taiwanese banks require an in-person meeting to complete the account opening process. The entire incorporation process usually takes between 2 and 3 weeks.

Directors and shareholders of the LLC, documents required
There are no ways to own an LLC in Taiwan as the sole shareholder as the company must have other shareholders in order to be properly incorporated. Such shareholders may be nominees or shareholders (de facto). However, corporate shareholders are permitted. The LLC must be registered with 1 shareholder and 1 director, both of whom can be non-resident aliens. A local shareholder is not required. Individual shareholders are permitted, all of whom must register on the public register of shareholders and directors. The minimum requirement regarding LLC directors is to have only one director. However, company directors are permitted. Taiwan’s legislation requires companies to hold an annual shareholders’ meeting.

In Taiwan, there is a statutory provision related to the Articles of Incorporation that states that shareholders who do not transact business may require shareholders that do business to provide information on the company’s business and its assets, documents, books and statements check. Basic documents required to be submitted by shareholders are their corporate documents, passport copies at the nearest Taiwan Economic and Cultural Bureau, Foreign Investor Qualification Statement, POA document. Shareholders may contribute their capital in the form of goodwill, services or other rights subject to compliance with certain provisions of Taiwanese law.

LLC share capital, documentation required
The share capital of the LLC must be deposited with a deposit receipt issued by the bank. Registration of LLC share capital requires certain documents to be notarized and legalized. The legalized documents must be submitted to the investment commission MOEA or MOEAIC. In addition, the company’s employees must have visas (including work permits, which usually take about 3 months to register) and licenses (if required by professional activity).

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