When a foreign company Taiwan branch is established, in accordance with the provisions of Taiwan Company Act, the company must always have a Taiwan address for company registration, prepare annual business report, prepare financial statements, tax declaration in every two months and hire an accountant to audit its annual financial statement, etc.

On June 15, 2015, the Taiwan Legislative Yuan approved the amendments to the Company Act. A special section on "Closely-Held Company" ("CHC") was added to Chapter 5 (Company Limited by Shares) as a result of the amendments and the purpose is to encourage the growth of startups and small and medium enterprises and to accommodate the unique needs of tech startups.

The first step to register a Taiwan company is to select a company name and business items. The investor is required to proceed the company name pre-check and reservation in MOEA. The validity period of company reservation is within 6 months from the date of reservation. If expired, the application of extension is necessary.

When a foreigners or a foreign company, including residents and companies from Hong Kong, Macau and Mainland China, intend to carry out business in Taiwan, they can consider setting up a company limited by shares, a limited company or a branch office in Taiwan.The article brief explains the major features, the registration procedures and the documents and materials required for the registration of a limited company in Taiwan.