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Buy a Shelf Company in Taiwan

Buy a Shelf Company in Taiwan

Shelf companies provide to foreign investors a fast way to start their business activity in Taiwan. Other advantages, related to costs and the simplicity of the acquisition procedure, are also arguments for buying a ready-made company. Our specialists in company formation in Taiwan are prepared to offer professional advice concerning the preliminary steps of purchasing a shelf company in Taiwan.  

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 lawyers in Taiwan can present more details. 

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.  

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 will ensure these requirements are met at the time of the purchase.

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. Once you begin your activities, you need to hire an accountant in Taiwan

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. Investors can also request information on the procedure for VAT registration in Taiwan

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 company that meets their personal and business requirements;
  • The buyer should conduct due diligence to ensure that the shelf company has 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.

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 companies have simpler transfer processes, as ownership can be transferred through a change in company directors or shareholders without significant alterations to company structure.  

Additionally, forming a traditional company involves various costs, including various fees and administrative expenses. While purchasing a shelf company in Taiwan involves upfront costs, such as the purchase price and any associated fees, it can be more cost-effective and convenient compared to starting a new company, considering the time saved.

Statistics about Taiwanese companies

Some general statistics about Taiwanese companies can provide insights relevant to understanding the shelf companies in Taiwan. Here are some facts about the Taiwanese business landscape for the year 2022:

  • Almost 1.6 million enterprises were registered in Taiwan;
  • These enterprises generated 55.6 trillion New Taiwan dollars from selling products or services;
  • The revenue generated from e-commerce activities in Taiwan constituted approximately 11.5% of the total revenue generated by all retail activities in the country;
  • Businesses involved in providing services related to travel earned a combined revenue of around 10.4 billion New Taiwan dollars.

Feel free to contact our Taiwan company formation specialists so that you can make an informed choice when buying shelf company in Taiwan. Our team can also help you set up a company in Taiwan as fast as possible.