Yes. HK/Macau residents, entities, groups, and other institutions may invest in Taiwan. In principle, HK/Macau investment follows the foreign investment and FX settlement rules. However, if PRC capital criteria are triggered, the case will be governed by the PRC investment permit regime (Measures Governing Investment Permits to the People of the Mainland Area), with stricter review and restrictions.

• 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 capital: A person with Macau permanent residency and no travel document other than a Macau passport; or a Portuguese passport holder only if Macau status was obtained at a specific historical point (before the end of Portuguese administration).

An entity organized/registered in Hong Kong or Macau is generally treated as HK/Macau capital. However, the Investment Commission applies look-through review of ownership and control. If PRC elements meet any of the following, it will be treated as PRC capital and regulated under PRC investment rules:
• PRC ownership exceeds 30% (direct or indirect), or
• PRC has control over the third-area company (e.g., decisive influence over management decisions, board control, etc.).

• 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.

HK/Macau investment generally follows foreign investment restrictions. Under the foreign investment statute and the negative list (prohibited/restricted industries):
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. If the HK/Macau 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 review and limitations.

Yes. The Chinese branch name must indicate origin, e.g., “Hong Kong Company ○○○ Co., Ltd., Taiwan Branch” or “Macau Company … Taiwan Branch.”

• Set up a Taiwan company (Limited Company / Company Limited by Shares)
• Set up a branch (the Taiwan branch has no separate legal personality)
• 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 HK/Macau head office. The head office bears unlimited liability for Taiwan branch obligations.
Tax
1. Subsidiary: dividends distributed to HK/Macau shareholders are generally subject to Taiwan withholding tax (21%).
2. Branch: profit remittance to the HK/Macau 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.

If you are not ready for operations, start with a representative office to evaluate the market. When you move to actual operations, converting to a company or branch is more flexible.

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 Unified Business Number (UBN) usually takes about 2–3 months. Look-through review or restricted industries may take longer.

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.籌備處帳戶。
2. Remit HK/Macau funds; 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.
Dividends to non-resident HK/Macau shareholders are generally subject to Taiwan withholding tax (21%).

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 HK/Macau head office or in Taiwan.

1. Profit repatriation: After CPA attestation and shareholder resolution, remit via bank with supporting documents. No Investment Commission approval is generally required.
2. 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.

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 employer applies to the Ministry of Labor for a work permit (education/experience, salary thresholds, etc.). After approval, apply to the National Immigration Agency for residence (ARC). Requirements vary by job category (professional vs. managerial). Please follow the latest rules and prepare supporting documents accordingly.