A: Yes. Foreign individuals and foreign entities may apply for approval from the Investment Commission and then set up a Taiwan company, branch, or representative office. Some industries are restricted. Investor status is generally classified as Foreign, HK/Macau, or Mainland China (PRC) depending on nationality/background and applicable rules.

• Foreign: A non-ROC national excluding HK/Macau persons. Please also note the relevant rules under the Enforcement Rules of the Act Governing Relations between the People of the Taiwan Area and the Mainland Area (Article 7). (Governing law: Statute for Investment by Foreign Nationals)
• • HK capital: A person with Hong Kong permanent residency and no travel document other than a BNO or Hong Kong passport. (Governing law: Act Governing Relations with Hong Kong and Macau)
• Macau (MO): A person with Macau permanent residency, and not holding travel documents other than a Macau passport; or holding a Portuguese passport only if Macau status was obtained at a specific historical point (before the end of Portuguese administration). (Governing law: Act Governing Relations with Hong Kong and Macau)
• PRC (Mainland China): A person with Mainland China household registration, and subject to the same Article 7 considerations above. Persons with certain party/government/military backgrounds are prohibited. (Governing law: Measures Governing Investment Permits to the People of the Mainland Area)

The Look-through Principle：This is the most critical part of the review. If PRC individuals or entities directly or indirectly hold more than 30% of a third-area company’s shares, or possess control, the investment is classified as "PRC Capital."

Foreign: An entity established/registered outside the ROC, and not falling under Article 3(2) of the PRC investment permit measures. (Governing law: Statute for Investment by Foreign Nationals)
HK/Macau: An entity organized/registered under Hong Kong or Macau law, and not falling under Article 3(2) of the PRC investment permit measures. (Governing law: Act Governing Relations with Hong Kong and Macau)
PRC (Mainland China): An entity organized/registered under PRC law, or falling under Article 3(2) of the PRC investment permit measures. Persons/entities with certain party/government/military backgrounds are prohibited. (Governing law: Measures Governing Investment Permits to the People of the Mainland Area)

An entity will be classified as "PRC Capital" if it meets either of the following criteria :
1. PRC Shareholding Ratio : PRC individuals, entities, or institutions directly or indirectly hold more than 30% of the entity's total shares or capital.
2. Control Power : PRC individuals, entities, or institutions possess the power to control the entity (e.g., serving as Chairman, holding more than half of the board seats, or dominating business and operational decisions).

• Legal: Under the current Company Act, most company formations have no minimum capital requirement (except regulated/licensed industries).
• Practical: The Investment Commission may review whether the capital is sufficient for operations. We suggest preparing a reasonable amount covering 6–12 months of setup and operating costs (suggested at least NTD 500,000), and having a CPA review/attest as needed.

Under the Statute for Investment by Foreign Nationals and the negative list (prohibited/restricted industries), the main categories are:
1. Prohibited: businesses that may harm national security, public order, morals, public health, or are explicitly prohibited by law (e.g., defense-related secrets).
2. Restricted: certain industries may restrict ownership ratio or require additional review for public interest or industrial policy reasons (e.g., agriculture/forestry/fishery/livestock, mass media, etc.).

Yes, potentially. While foreign investment generally follows the foreign investment statute, if the offshore company is a PRC third-area company (PRC ownership >30% or with control), it may be treated as PRC capital and be subject to the PRC investment permit regime, with stricter restrictions and review.

Yes. The Chinese name must indicate the country of origin, e.g., “American Company ○○○ Co., Ltd., Taiwan Branch” or “Japanese Company … Taiwan Branch.”

Set up a Taiwan company (Limited Company or Company Limited by Shares)
Set up a branch (extension of the head office business)
Set up a representative office (liaison only; no revenue-generating activities)

Legal status
1. Subsidiary: a separate legal entity in Taiwan; bears its own profits/losses.
2. Branch: Not a separate legal entity; treated as an extension of the foreign head office. The head office bears unlimited liability for Taiwan branch obligations.

Tax
1. Subsidiary: When profits are distributed to foreign shareholders, Taiwan withholding tax on dividends generally applies (commonly 21%).
2. Branch: Profit remittance to the foreign head office generally does not trigger dividend withholding tax.

No. A representative office may not engage in profit-making activities. In practice, it may conduct non-revenue activities such as signing, quotations, negotiations, bidding, procurement, market research, and related legal acts.

Consider a representative office first. If you later need actual operations, you can convert to a branch or company for more flexibility.

Typical steps: name reservation → Investment Commission approval → capital remittance & CPA verification → investment amount recognition → company registration → tax/VAT registration.
If documents are complete and no special review applies, the full process from name check to getting the Unified Business Number (UBN) usually takes about 1 to 1.5 months.

Only the Power of Attorney for the investment agent is required. The investor should legalize the POA through a Taiwan overseas mission. If the signatory is in Taiwan during the signing period, notarization may be done by a Taiwan court or local notary under Taiwan notarization law.

In most cases, yes—typically for bank account opening (after approval) and the tax office interview. Other matters may be handled by an authorized agent within the POA scope.

Please refer to the attachment.

1. Use the approval letter to open a preparatory account at a bank.
2. Remit funds from overseas; specify remittance purpose code “310” (foreign equity investment).
3. For FX conversion to NTD, present the original approval letter to the bank.
4. Engage a CPA to perform capital verification/attestation.
5. Submit the CPA report to apply for investment amount recognition.
6. After recognition is issued, the funds are officially treated as capital for operations.

Tax registration (National Taxation Bureau), e-invoice system setup, and Labor/NHI enrollment (if hiring employees), etc.

1. VAT: 5% or 0%
2. CIT (Profit-Seeking Enterprise Income Tax): 20%
3. Profit remittance withholding: 21% (not applicable to Taiwan branches)
4. Undistributed earnings tax: 5% (not applicable to Taiwan branches)

Yes.
Standard : Dividends to non-resident shareholders are generally subject to withholding (commonly 21%).
Tax treaty : If the investor’s jurisdiction has a tax treaty with Taiwan and conditions are met (e.g., minimum shareholding, beneficial ownership), the investor may apply for a reduced treaty rate (e.g., 10% or 15%). Application must be filed before distribution and approved by the tax authority.

A representative office cannot issue invoices and generally has no VAT/CIT obligations in Taiwan. However, expenses paid (rent, payroll) require proper withholding handling depending on whether costs are paid by the head office or in Taiwan.

Profit repatriation: After CPA attestation and shareholder resolution, remit via bank with supporting documents. No Investment Commission approval is generally required.
• Capital repatriation (capital reduction / divestment): Prior approval from the Investment Commission is required. After approval and CPA verification, remit via bank.

Yes. With separate books and CPA attestation, a branch may apply up to 10-year loss carryforward.

Yes. The remitter must be the head office and the beneficiary must be the Taiwan branch.

Major shareholding changes and changes of directors/representatives generally require reporting to the Investment Commission. Manager changes depend on whether representative authority or articles requirements are involved.

Follow Company Act liquidation procedures, tax clearance, return of unused capital, and Investment Commission divestment/cancellation filing. Branches/representative offices have corresponding deregistration procedures.

The company must apply to the Ministry of Labor as the employer to hire foreign professionals.
Key requirements typically include:
1. Company status/capital threshold: e.g., newly formed company with paid-in capital of NTD 5 million or more (example threshold as stated).
2. Candidate qualifications: specified education/experience (e.g., master’s degree or 2+ years relevant experience) and salary meeting the required level. After the work permit is issued, apply for the ARC/residence through the National Immigration Agency.