TAIWAN
Overview of Taiwan Companies
Overviews of Key Features
Overviews of Key Features
Taiwan is located at the heart of the Asia-Pacific region, which puts it in an advantageous position to make use of global production resources and marketplace.
Taiwan’s north is the world’s third-largest economy-Japan, its south is the 10 countries of the Association of Southeast Asian Nations and India. Taiwan’s east is the world’s largest economy-the US, and its west is mainland China-the world’s second-largest economy and the centre of the world’s economic growth. The average flying time from Taipei to the seven major cities (Hong Kong, Shanghai, Manila, Seoul, Tokyo, Singapore and Sydney) in Western Pacific is merely 2 hours and 55 minutes. And the average sailing time from Kaohsiung harbour to the 5 major Asia-Pacific harbours is merely 53 hours. Taiwan is the hub of Asian transportation and the logistic centre in the East-Asian region.
Taiwan has been ranked 1st in quality of life and the 2nd best place for expatriate overall in InterNations’ Expat Insider report for 2018.
GENERAL
| Location of Jurisdiction | Taiwan – South East Asia |
|---|---|
| Official Language | Chinese Mandarin and Min Nan |
| Political Stability | Excellent |
| CRS joined country | Yes |
| Tax on Offshore Profits | Yes |
| Disclosure of Beneficial Owner | Yes, but Nominees may be used. |
| Submit Audited Accounts | Audit for financial statements is required if the company’s capital exceeds NTD$30,000,000; audit for tax filings is required if the company’s annual revenue exceeds NTD$30,000,000 or the company want to enjoy the loss carry forward benefit |
| Time to Incorporate | 2~3 months |
CORPORATE
| Type of Offshore Company | Limited Company |
|---|---|
| Type of Law | Company Act |
| Allowed Business Activities | An entity-level certificate/license may be required for certain regulated business (e.g. financial institutions, construction) |
| Local Registered Office/ Agent Required | Yes |
| Change of Domicile | Yes |
| Shelf companies Available | Yes |
| Language of Documents | Chinese |
| Name of Company | Chinese |
| Corporate Seal | A metal corporate seal is mandatory |
DIRECTOR
| Eligibility | Any person or company of any nationality |
|---|---|
| Minimum Number of Directors | 1(individual and nobody corporate) |
| Disclosure to Authorities & Public | Yes |
| Residence Required | May reside anywhere |
| Local Director Required | No |
| Location of Meetings | Anywhere |
COMPANY SECRETARY
| Secretary Required | No |
|---|
SHAREHOLDERS
| Minimum number of shareholders | 1 |
|---|---|
| Maximum number of Shareholders | Unlimited; but no more than 50 shareholders for a close corporation |
| Eligibility | Any person of any nationality or body corporate |
| Disclosure to Authorities & Public | Yes |
| Annual General Meetings | Required |
| Location of Meetings | Anywhere |
SHARES
| Minimum Number of shares | 1 |
|---|---|
| Maximum Number of shares | Unlimited |
| Bearer Shares Permitted | No |
| Classes of shares permitted | Ordinary shares, preference shares, redeemable shares and shares with or without voting rights. |
SHARE CAPITAL
| Permitted currencies | NTD |
|---|---|
| Minimum paid-up share capital | NTD$1 (if the business entity engages in activities that require a special permit or approval, the authorities may set a higher capital requirement) |
| Maximum share capital | Unlimited, but government charge of NTD$1 for every NTD$4,000 in share capital over NTD$4,000,000 |
| Recommended share capital | Sufficient to pay for initial operating expenses |
| The requirement to be paid up | Yes (capital needs to be examined and certified by a local CPA) |
Restrictions on Name and Activity
Investors should first select a Chinese name for the company that they will be setting up in Taiwan. The company that they set up must then file an application for pre-review of the company name and business scope as well as to retain the company name during the pre-review period with the Central Region Office. Certain words which suggest specialist activity can only be used when the appropriate licenses have been obtained (e.g. asset management, construction, bank).
Financial Statement Requirements
Annual audited financial statement is required only if the Taiwan company’s paid-in capital is in excess of NTD$30,000,000 or the business is under certain regulated industries (e.g. bank, listed company). In these cases, an appointed auditor is required, who must be a member of the Taiwan Society of Accountants and hold a practising certificate. Taiwan companies must keep accounting records, which may be kept at the registered office address or elsewhere at the discretion of the directors.
Annual Filings/ Requirements
Filing of Income Tax Return (annually)
Filing of Value-added Tax Return (bi-monthly)
Filing of Withholding Tax Return (monthly and annually)