According to the definition of 3rd article in “ Measures Governing Investment Permit to the People of Mainland Area”: “ The investors mentioned herein refer to the individuals, juristic persons, organizations, other institutions from Mainland and the companies they invest into in a third area which are, in accordance with these Measures, engaged in investment behaviors in Taiwan area.
For the sake of full correspondence of par value of Company Limited by Shares, which was enacted in the old version Company Act in Taiwan, the system of par-value stock was born hereafter. Due to no minimum amount of par value of shares regulated by laws, it is workable to set a super low amount of par value in the articles of incorporate to ease the difficulty of fundraising the amount of par-value stock theoretically, which is lower than the actual amount of par value.
With the upcoming deadline of special law of repatriated fund within the last two years till now (the law will be expired on August.), CFC regulation is about to come on the heels of it in 2020 by the arrangement of Ministry of Finance in Taiwan. Hundreds of businessmen in Taiwan who preferred to register their companies in BVI or Cayman Islands and invested firms in other countries is going to face an influential effect shortly.
In order to establish a corporation in Taiwan, the foreign investor(s) should obtain approval under the Statute for Investment by Foreign Nationals ("SIFN"). A company established under SIFN is usually referred to as a Foreign-Investment-Approved ("FIA") company. Certain industries are prohibited or restricted from foreign investment under SIFN.
There are four types of companies in Taiwan: unlimited company, unlimited company with limited liability shareholders, limited company and company limited by shares. Unlimited company and unlimited company with limited liability shareholders are rarely used in practice; a company limited by shares is the most common form of business undertaken for foreign investors in Taiwan.
To establish a Taiwan company, a business place within the territory of Taiwan for registration is required.Suppose that the location of business place is at Taipei City, the procedure of “Business Place Pre-search” shall be finished preliminarily to confirm if the intended business items are complied with the urban plan and other related prescribed laws.
TWSE Listing, TPEx Mainboard Listing and Emerging Stock companies in Taiwan are all referring to companies with outstanding shares held by outsiders’ investors. The main differences are the listing criteria and trading rules.Emerging Stock company refers to the companies which shares are issued and traded in the emerging stock market, and neither is TWSE Listing nor TPEx Mainboard Listing. Before a company registers for TWSE or TPEx Listed
From 30/12/2020, parts of revised articles in “Business Mergers And Acquisitions Act” are passed and adopted by the department of executives in Taiwan. The revised parts are included to increase the transparency of information for business mergers, to grant the power of purchase for shareholders who vote against merger, to loosen the asymmetric merger
The establishment of a supervisor is a necessary supervisory and self-manageable unit for Taiwan company limited by shares pursuant to Company Act and aims to oversee the overall business operation and examination of accounting. The definition of “Supervise” is not only limited to hold the rights to oversee the businesses operated by directors
Limited company, limited company by shares and branch the aforementioned modes of Taiwan company shall submit the business report, financial statement and surplus earning distribution or loss off-setting proposals to shareholders or shareholder regular meeting for acknowledgement. The statement generated after the abovementioned procedure is finished is so-called final statement.