Legislation of Taiwan

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List of state regulatory authorities

CNFI (Chinese National Federation of Industries)
CNAIC (The Chinese National Association of Industry and Commerce)
CISA (Information Service Industry Association)
PIDA (Photonics Industry & Technology Development Association)
ROCCPA (Certified Public Accountant)
ROCCOC (The General Chamber of Commerce)
TBA (Taipei Bar Association)
TAITRA (Taiwan External Trade Development Council)
TAMI (Taiwan Association of Machinery Industry)
TEEMA (Taiwan Electrical and Electronic)
TCOC (Taiwan Chamber of Commerce)
TIEC (Taiwan Importers & Exporters Chamber of Commerce)
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Corporate info

Legal system
civil law (with some elements of common law)
Types of entity
unlimited company, unlimited company with restricted liability of shareholders, company limited by shares, limited company, representative office, branch of a foreign company
Shelf companies permitted
Yes
Incorporation timescale for a new company
7 days
Company suffix
有限公司 (Limited in Chinese)
Sensitive words
foreign words; words associated with state agencies or social organizations; words which have an implication of offending against public order or good customs.
Cyrillic alphabet permitted in company name
No
Local registered office
Yes
Local registered agent
Yes
Information to be kept at the registered office
Articles of Incorporation
Seal required, type of seal
A set of seals is required: a seal with a company name, a seal with a name of a chairman of board of directors (responsible person) and invoice seal.
Redomiciliation (to, from) permitted
not permitted

Director and secretary

Minimum number of directors
1
Residency requirements for directors
No
Corporate directors permitted
Yes
Directors’ meetings/frequency/location
Yes / no requirements
Disclosure to local agent
Yes
Disclosure to public
Yes
Company secretary required
No
Residency requirements for a secretary
No
Qualified secretary required
No
Corporate secretary permitted
No

Shareholder and beneficiary

Minimum number of shareholders
1
Residency requirements for shareholders
No
Corporate shareholder permitted
Yes
Meetings/frequency/location
Yes / annually / no requirements
Disclosure to local agent
Yes
Disclosure to public
No
Beneficiary info disclosure to
No

Shares and share capital

Minimum authorized share capital
No requirements
Minimum issued share capital
No requirements
Minimum paid share capital
No requirements
Authorized capital payment deadlines
No requirements
Issued capital payment deadlines
Within one year after approval from Investment Commission and before establishment of company
Standard currency
NTD
Standard authorized share capital
500000
Standard par value of shares
No
Shares with no par value permitted
No
Bearer shares permitted
No

Taxes

Personal tax
5-40%
Сorporate tax
20%
Corporate tax (in detail)
Income tax is paid at the rate of 20%. Additional tax on profits not distributed by the end of the next fiscal year is levied at the rate of 5%
Capital gains tax
Regular rate
Capital gains tax. Details
Profits from the sale of assets, in general, are included in the general taxable base, however, special taxes are provided for transactions with real estate
VAT
5%
VAT. Details
The VAT rate is 5%. This tax generally applies to transactions in various sectors of the economy. GBRT applies in special cases, in particular to financial institutions, small businesses. GBRT rate is 5% for banks and insurance companies
Withholding tax
21%/20%/15%
Other taxes
Social Contributions, Property Tax, Land Gains Tax, land value increment tax, Real Estate Transaction Tax, Securities Transactions Tax, Inheritance and Gift Tax
Exchange control
There are some foreign exchange controls
Government fee
There is no annual fee in Taiwan, but instead there are various registration fees at the stage of incorporation of company.
Stamp duty
0,1-0.4%

Accounts

Requirement to prepare accounts
Yes
Requirement to file accounts
Yes
Publicly accessible accounts
No
Requirement to file Annual Return
No
Publicly accessible Annual Return
No
Audit required
Yes

General information shortly

Location
Eastern Asia
Total area
35.980 sq.km
Population
23.782.448 (2018)
Capital
Taipei
National currency
New Taiwan Dollar
Conditional reduction of currency
TWD
Against USD
0,034 (2022)
Climate, average max and min t°
subtropical in the north and tropical monsoon in the south. The amount of precipitation in the lowland part is 1500—2500 mm and more than 5000 mm in the mountains. Typhoons are typical of August and September. It is a rainy season from June to august in Taiwan. The northern part of the island is cloudy through the year. In the south 90% of precipitation falls out during the rainy season.
Time difference from Moscow
+ 5 hours
Dialing code
+886
State language
Chinese
Ethnic groups
98% of Taiwan's population is of Han Chinese ethnicity, 2 % is Taiwanese aborigines
Literacy rate
98%
History
Throughout history thanks to its geographic position and rich natural resources Taiwan has always attracted invaders. In the 12th century it was officially included into mainland China’s territories as province Fujian what stimulated the process of island’s reclamation. From the late 16th – 17th centuries Portugal, Holland and Spain took turns in controlling Taiwan. In 1661 Taiwan became the part of China again. In 1895 the island was ceded to Japan. After World War Two Taiwan became a part of the Republic of China (ROC) which was established in 1911. Following the Chinese civil war, the Communist Party of China took full control of mainland China and founded the People's Republic of China (PRC) in 1949. The ROC with its head of state Chang Kaishek and Guomingdang party relocated its government to Taiwan, and its jurisdiction became limited to Taiwan and its surrounding islands. Since then till 1987 the island was in a military state which was introduced to fight separatism in Taiwan. The supremacy of one-party system is typical of this period. Guomindang was the only legal political party in the country, therefore economy, national administration and ideology were under its complete dictate. Due to preserved infrastructure after Japanese colonization and modernization measures taken by the Guomindang government in the 1960-70s Taiwan gradually developed into a prosperous industrial country and became one of the “Four Asian Tigers”. In the meantime domestic political climate was mitigated. In 1996 direct president election was introduced, and in 2000 for the first time in half a century opposition candidate of Democratic Progressive Party – Chen Shuibian was elected president. Meanwhile, ROC, or Taiwan, is still a partially recognized state, and most countries take the side of PRC considering Taiwan one of the provinces of PRC.
Credit rating
AA
Government type
republic, multiparty democracy
Executive branch
President, Executive Yuan (Government) with the Premier as its head
Legislative branch
Legislative Yuan (unicameral body with 113 seats), elected for 4 years
Judicial branch
Judicial Yuan and subject Supreme Court, High courts, district courts and Administrative court
Unemployment
3,9% (2020)
GDP per capita rank
17 (2020)
Corruption perceptions index rank
68 (2022)

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