Entrepreneurs who intend to change their company types in Taiwan have to know that the way to achieve this is by closing down their existing companies and setting up new ones under the preferred forms. As follows, our company formation agents in Taiwan explain various aspects related to changing company types in this country.
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Types of companies in Taiwan
In Taiwan, there are four types of companies: the unlimited company, the unlimited company with limited liability shareholders, the limited company and the company limited by shares.
The most popular type of business vehicle among foreign entrepreneurs in this country is the company limited by shares.
Such a legal entity must have minimum two shareholders. It is acceptable, though, for them to have only one shareholder if it is a juridical person or a governmental agency.
The shares of such company can be transferred. However, a promoter (an initial shareholder) is not allowed to transfer his or her initial shares which have been subscribed at the company incorporation within the first year after the Taiwan company formation.
Setting up a new company in Taiwan
When changing company types in Taiwan, after closing down the existing company, an entrepreneur has to set up a new company in Taiwan.
To do so, this procedure has to be followed:
- Utilize an online platform to search the company name, apply for the incorporation and the company tax registration in Taiwan, as well as apply for the Labor Insurance, National Health Insurance and Pension Plan Report with the Bureau of Labor Insurance and to register for work regulations with the Council of Labor Affairs;
- Make a seal for the company;
- Submit a CPA (certified public accountant) report which shows that the amount of the capital invested is enough to acquit the company set up expenses at the Ministry of Economic Affairs.
If you have more questions about how to change company types in Taiwan, or for help to set up a company in Taiwan, please do not hesitate to get in touch with our friendly team of advisors.