Services - New Business Formation

JAMES LIN & Co. offers CROSS-SECTOR, CROSS-BORDER, CONVERGENCE services in the areas of:

  • Company Registration
  • Accounting Services
  • Audits, Reviews and Compilations

Company Registration

The Company Law of Taiwan permits four classes of business organizations:

 

- The unlimited company: may be organized by two or more shareholders with unlimited joint liability among them.

- The unlimited company with liability shareholders: can be organized by one or more shareholders of unlimited liability and one or more shareholders of limited liability.

- The limited company, organized by at least 1 shareholder with each shareholder liable only for their capital contribution.

- The company limited by shares, which must have at least 2 shareholders whose liability is restricted to the division of the total capital allotted to each shareholder.

 

The most common business organizations are the limited company and the company limited by shares. An audit report for the vested capital shall be presented for company registration application.

Comparison of Business Entities in Taiwan

  Limited Company (Close) Company Limited by Shares Branch Office of a Foreign Company Representative Office
Permitted activities General trading, sales, and manufacturing. General trading, sales, and manufacturing. General trading and sales. Legal acts and liaison work.
Profit remittance tax Withholding tax of 21%. Withholding tax of 21%. None N/A
Shareholder/head office liabilities The shareholders are liable to the extent of their capital contribution in the company. The shareholders are liable to the extent of their capital contribution in the company. The foreign head office is liable for any liabilities unsettled by the branch. N/A
Shareholder requirements Min. 1 corporate shareholder or 1 individual shareholders. All can be non-Taiwan nationals residing outside of Taiwan. Min. 1 corporate shareholder or 2 individual shareholders. All can be non-Taiwan nationals residing outside of Taiwan. N/A N/A
Director requirements 1 ~ 3 directors. All can be non-Taiwan nationals residing outside of Taiwan. Min. 1 director. All can be non-Taiwan nationals residing outside of Taiwan. N/A N/A
Supervisor requirements N/A Min. 1 supervisor. Who can be non-Taiwan nationals residing outside of Taiwan. N/A N/A
Capital requirements Min. TWD500,000 if hiring a foreign national manager (work permit / ARC application) is needed during the 1st year of operation; otherwise, a reasonable amount. Min. TWD500,000 if hiring a foreign national manager (work permit / ARC application) is needed during the 1st year of operation; otherwise, a reasonable amount. Min. TWD500,000 if hiring a foreign national manager is needed during the 1st year of operation; otherwise, a reasonable amount. N/A