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Taiwan Company – Limited Company by Shares

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Q: What is a company limited by shares?
A: A company limited by shares is a type of company whose capital is divided into shares, with shareholders liable only to the extent of their subscribed shares.

Q: Can a foreign company establish a company limited by shares in Taiwan?
A: Yes. Subject to Taiwan's applicable laws and regulations, a foreign legal entity may act as a shareholder or incorporator of a company limited by shares in Taiwan.

Q: Is a company limited by shares required to appoint a supervisor?
A: Generally, a company limited by shares is required to have a supervisor. However, a one-shareholder company wholly owned by a government entity or legal entity may, as provided in its Articles of Incorporation, choose not to appoint a supervisor.

Q: What is the main difference between a limited company and a company limited by shares?
A: Both provide limited liability to their shareholders, but their organizational structures differ. A limited company is based on the shareholders’ capital contributions, while a company limited by shares divides its capital into shares, with shareholders liable to the extent of their subscribed shares.

Q: Can a limited company be converted into a company limited by shares after incorporation?
A: Yes. A company may be converted from a limited company to a company limited by shares in accordance with the relevant provisions of the Company Act.

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