Buy a Shelf Company in Taiwan

Our specialists in company formation in Taiwan are prepared to offer professional advice concerning the preliminary steps of purchasing a shelf company in Taiwan.  

What is the process of buying shelf companies in Taiwan?

Purchasing a shelf company in Taiwan involves buying a pre-existing, already-registered company. This is an attractive option for entrepreneurs who want to start a business quickly without going through the time-consuming process of company registration in Taiwan. 

Here are the general steps involved in purchasing a shelf company:

• the buyer researches and identifies a shelf companythat meets their personal and business requirements;
• the buyer should conduct due diligence to ensure that the shelf companyhas a clean legal and financial history, with no outstanding liabilities, lawsuits, or other risks;
• upon reaching an agreement, the seller transfers ownership of the shelf company to the buyer. This will involve completing and filing the necessary paperwork with the Taiwanese authorities;
• the buyer will receive documentation confirming their ownership of the shelf company, and the updated articles of incorporation or other relevant documents.

Additionally, after buying a shelf company in Taiwan, the buyer might also need to obtain additional necessary licenses and permits, depending on the new business industry. He/she may also hire employees.

Our team can help you if you want to set up a company in Taiwan or purchase an already-existing one.

What documents are required to buy a shelf company in Taiwan?

A foreign individual needs a valid passport. A corporate buyer must provide documents that confirm the company’s registration and legal status.

Foreign investors may also need:

• an investment application;
• a share transfer agreement;
• a power of attorney if a local representative handles the procedure.

Taiwanese authorities may request Chinese translations and authentication for certain foreign documents. Our consultants can prepare and review the required documents. We can also assist with the ownership transfer.

What are the preliminary actions when purchasing a shelf company in Taiwan?

The most important aspects when you decide to buy a shelf company in Taiwan is to make sure you invest in the right entity.

This is why you can employ one of our specialists in Taiwan company registration to conduct for you a due diligence investigation. Through this process you can find out any potential risks involved in purchasing a company with unclear business records and protect yourself from investment in the wrong entity.

You should as well rely on a local expert in order to elaborate for you the sale purchase agreement. Our consultants can help you understand what elements you need to include in the contract so that your purchase to take place in the safest conditions.

Who can buy shelf companies in Taiwan?

Shelf companies in Taiwan can be purchased by anyone who meets the legal requirements for company ownership and operation in the country. This includes individuals, corporations, or other legal entities.

However, it’s essential to comply with all relevant laws and regulations governing company ownership and operation in Taiwan. Potential buyers of shelf companies should carefully review the legal and financial status of the company before completing the purchase. 

 Our Taiwan company formation agents will ensure these requirements are met at the time of the purchase.

Can foreign investors buy a shelf company in Taiwan remotely?

Yes. A local representative can handle several formalities under a power of attorney.

However, banks or authorities may request the investor’s physical presence for certain checks or specific procedures.

Why is it advantageous to buy a shelf company in Taiwan?

The ready-made companies offer to investors a name and a history in a particular business area. Investors in Taiwan can profit from the image of the enterprise that they purchase in order to reach much faster the local public. The trust and loyalty of the customers in Taiwan can make your enterprise develop much faster than if you start a new business entity in a foreign place.

Another key aspect for which investors prefer shelf companies is that the formation costs are saved. Moreover you won’t need to waste the time with any formation procedures and registration with the authorities, since the shelf company represents an already registered company that gives you the possibility to commence at once your business activity in Taiwan. 

Our Taiwan company registration consultants can give you more details on the initial steps that you should follow when you decide to purchase a ready-made entity.  

What changes can be made to a shelf company in Taiwan after purchase?

The new owners can change several corporate details to match the planned business activity:

• company name;
• registered address;
• business scope;
• directors, managers and ownership structure.

In many cases, Taiwan requires the company to file the amendment within 15 days after the change takes place. Our team can help you with the registration formalities after the acquisition.

What are the differences between a traditional company and a shelf company?

The main difference between a traditional company and a shelf company in Taiwan is the method of incorporation.

While forming a traditional company requires a more complex procedure of filing documents, appointing directors, issuing shares, and fulfilling other legal requirements, a shelf company is a pre-registered entity that has been already created. Shelf companies are available for immediate purchase, while opening a new company in Taiwan might require several months or weeks. 

A traditional company starts its operations from the date of incorporation. It may have a business plan, assets, liabilities, contracts, and ongoing activities. On the other hand, shelf companies have no operational history.

In traditional companies, ownership transfer usually involves a more complex procedure. Shelf companieshave simpler transfer processes, as ownership can be transferred through a change in company directors or shareholders without significant alterations to company structure.  

What taxes does a shelf company have to pay after the purchase?

A shelf company in Taiwan follows the same tax rules as any other Taiwanese company. 

According to the Ministry of Finance in Taiwan, companies are generally subject to a 20% corporate income tax on taxable profits. Most taxable sales of goods and services are also subject to a 5% business tax.

The company may also need to withhold tax when it pays dividends, interest, royalties or other types of income. The applicable rate depends on the payment, the recipient and any relevant tax treaty.

Our consultants can help you with tax registration and ongoing compliance after the purchase.

How much does it cost to buy a shelf company in Taiwan?

The cost varies according to the company’s age, share capital and corporate structure. The final price may also include:

• due diligence;
• ownership transfer;
• registration changes;
• legal assistance;
• other professional services.

Our consultants can provide a cost estimate based on the selected company and the services required for the transfer.

Feel free to contact our Taiwan company formation specialists so that you can make an informed choice when buying shelf company in Taiwan.