|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|
|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.