To comply with the Anti-money laundering policies, Taiwan companies shall declare the shareholding information which shareholders holding the shares more than 10% on the shareholder declaration platform affiliated with TDCC (Taiwan Depository & Clearing Corporation) on March 1st to 31st annually.
The platform aims to curb money laundering only, so the declaration information will not be allowed to be disclosed to the publics, but the government authorities or courts remain the rights to utilize the declaration information for any money laundering case if necessary.
In principle, the obligators to proceed the declaration are Taiwan companies, except for Taiwan branch office, listed company. Unlimited Company, Unlimited Company with Limited Liability Shareholders, Company Limited, Unlisted Company Limited by Shares shall all required to proceed in accordance with laws, even for suspending companies.
For the deadline of declaration, the new company shall proceed the initial declaration within 15 days from the date of registration, apart from annual declaration on March 1st to 31st. For the incorporated and declared companies, the declaration of change is required to proceed within 15 days from the date of change, if the company file any application of change (ex. Capital increase or decrease, change of director information…etc.). Companies which have already declared such changes within January 1st to March 31st, the annual declaration is not required to proceed repetitively.
A company fails to report or the information reported is misrepresented according to Paragraph One, the central competent authority shall notify the company to rectify its law violating act within a given time limit; and if the company fails to take corrective action beyond the given time limit, the director representing the company shall be imposed with a fine of not less than NT$ 50,000 but not more than NT$ 500,000; and if the company still fails to take corrective action beyond the second given time limit, the director representing the company shall be imposed with a fine of not less than NT$ 500,000 but not more than NT$ 5,000,000 consecutively for each non-compliance until the law violating act is rectified. If the violating act is material, the central competent authority may nullify its incorporation registration.
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In Taiwan, companies can be categorized into three types: limited company, limited company by shares and foreign branch office. According to Taiwan’s Company Act, when establishing a company, the founders (shareholders) must hold a meeting to determine the company’s capital amount.
A Taiwan limited company by shares is required to appoint at least one supervisor to oversee and conduct audits of the company’s operations. The primary purpose of supervisor role is to serve as a check against the board of directors, ensuring that the rights of general shareholders are not infringed upon and that directors do not abuse their powers for personal gain.
No matter foreigners or Taiwanese to be the responsible person of Taiwan company, the tax regulations will be varied as different as the country of tax residents.Residency and holding the household registration in Taiwan within 1 to 31 days (with Taiwan labour insurance, health insurance, national pension, or spouse and children in Taiwan).
To comply with the Anti-money laundering policies, Taiwan companies shall declare the shareholding information which shareholders holding the shares more than 10% on the shareholder declaration platform affiliated with TDCC (Taiwan Depository & Clearing Corporation) on March 1st to 31st annually.
