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
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.


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.