KNOWLEDGE|
Type of Entity |
Branch Office of Foreign Company |
Subsidiary |
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Limited Company |
Company Limited by Shares |
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Character |
Foreign companies apply for recognition and set up branch office, for doing business in Taiwan. |
Shareholders apply for an independent corporation, for doing business in Taiwan. |
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Company Name |
Translate foreign company name into Chinese language and apply for name verification. |
Name company & apply for name verification |
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Documents |
1. Certificates of the status of foreign companies /nationals |
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Minimum Number of Shareholders |
0 |
1 |
1-2 (Note 1) |
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Minimum Number of Directors |
1 (Note 2) |
1 |
3 |
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Minimum Number of Supervisors |
N/A |
N/A |
1 |
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Corporate Directors Permitted |
No (Note 2) |
No |
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Requirement for Local Directors |
No |
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Requirement for Local Supervisors |
N/A |
No |
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Requirement for Registered Office |
Yes |
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| Requirement for Local Meeting |
No |
Yes |
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| Minimum Authorized Capital(Note3) | |||
| Requirement for share certificates |
N/A |
No |
Yes |
| Requirement for Income Tax Return |
Yes
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| Requirement for Audited Accounts |
Yes
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| Company Income Tax |
17%
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| Dividend Distribution Tax |
None (Note 4) |
20% (of Income after Company Income tax) |
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| Duration of Set Up Procedures |
60-90 Days
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| Independent Entity |
No |
Yes |
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| Obligation |
Any unperformed obligation of branch office shall still be performed by foreign company. |
When the assets of company are not sufficient to meet its liabilities, the company shall apply for a declaration of bankruptcy. |
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Note: |
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| 1. | 1 is for corporation shareholder; 2 for individual shareholders. | |
| 2. | Representative / Managing Officer. | |
| 3. | The authorized capital shall be transferred into companys bank account from where parent company/shareholder resides. In addition, share capital shall not be paid in installments nor solicited from outsiders. | |
| 4. | Amendment to 20% from none is expected in future. When enacted, tax burden will be same as subsidiary. | |
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Disclaimer All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage. |
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