Comparison Chart of Branch and Subsidiary in Taiwan
| Type of Entity | Branch Office of Foreign Company | Subsidiary | |
| Limited Company | Company Limited by Shares | ||
| Character | Foreign companies apply for recognition and set up branch office, for doing business in Taiwan. | Shareholders apply for an independent corporation, for doing business in Taiwan. | |
| Company Name | Translate foreign company name into Chinese language and apply for name verification. | Name company & apply for name verification | |
| Documents | 1. Certificates of the status of foreign companies /nationals 2. Authorization letter of proxy which legalized by Taiwan embassy 3. Investment plans |
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| Minimum Number of Shareholders | 0 | 1 | 1-2 (Note 1) |
| Minimum Number of Directors | 1 (Note 2) | 1 | 3 |
| Minimum Number of Supervisors | N/A | N/A | 1 |
| Corporate Directors Permitted | No (Note 2) | No | |
| Requirement for Local Directors | No | ||
| Requirement for Local Supervisors | N/A | No | |
| Requirement for Registered Office | Yes | ||
| Requirement for Local Meeting | No | Yes | |
| Minimum Authorized Capital(Note3) | |||
| Requirement for share certificates | N/A | No | Yes |
| Requirement for Income Tax Return | Yes | ||
| Requirement for Audited Accounts | Yes | ||
| Company Income Tax | 17% | ||
| Dividend Distribution Tax | None (Note 4) | 20% (of Income after Company Income tax) | |
| Duration of Set Up Procedures | 60-90 Days | ||
| Independent Entity | No | Yes | |
| Obligation | Any unperformed obligation of branch office shall still be performed by foreign company. | When the assets of company are not sufficient to meet its liabilities, the company shall apply for a declaration of bankruptcy. | |
Note:
1. 1 is for corporation shareholder; 2 for individual shareholders.
2.Representative / Managing Officer.
3.The authorized capital shall be transferred into company’s bank account from where parent company/shareholder resides. In addition, share capital shall not be paid in installments nor solicited from outsiders.
4.Amendment to 20% from none is expected in future. When enacted, tax burden will be same as subsidiary.