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Taiwan Company – Mainland China Investment

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Q: What are the criteria for determining an investment as Mainland China investment?
A: According to the “Regulations Governing the Permission of Investment by Nationals in Mainland Area”, an investment is considered a Mainland China investment if:
  1. A company from Mainland China directly invests in Taiwan.
  2. A company from Mainland China indirectly holds more than 30% of the shares or total capital contribution of an investment company in a third region.
  3. A company from Mainland China has control over the third-region company.

Q: What business projects are open to investment by Mainland China enterprises?
A: Please refer to the positive list published on the official website of the Investment Commission, Ministry of Economic Affairs. The listed sectors indicate the business activities open to investment by Mainland China enterprises.

Q: If an investor was born in Mainland China but has acquired a third-region nationality, will their investment still be considered as Mainland China investment?
A: If the investor was born in Mainland China, they must submit an original proof of Certificate of Renunciation of Chinese nationality issued by the local public security authority in Mainland China for verification by the relevant authorities in Taiwan. Otherwise, the investor will still be classified as a Mainland China national for investment purposes in Taiwan.

Q: How long does it take to establish a Mainland China invested company in Taiwan?
A: The establishment of a Mainland China invested company currently takes approximately one year or more. The approval time may vary depending on the complexity of each case.

Q: If the ultimate beneficial owner indirectly or directly holds less than 30% of a Taiwan company, is it still considered a Mainland China investment?
A: Even if the investment does not meet the statutory threshold of directly investing or indirectly investing more than 30% of the shares or total capital contribution of a third-region investment company, the relevant authorities in Taiwan will still assess the investor’s level of control and shareholding on a case-by-case basis to determine whether it qualifies as a Mainland China investment.

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