Taiwan has a bankruptcy legislation which guarantees creditors their right to share the assets of the bankrupt company proportionally. Secured interests in property are acknowledged as and put into practice through a registration system. In this article, our company formation agents in Taiwan explain how to close a company in Taiwan.
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Liquidation procedure in Taiwan
Under the Company Act, except if it is otherwise stated by the Company Act or in the Articles of Association, or except when the shareholders already named a liquidator, the liquidation of a Taiwan company which is limited by shares generally must be effectuated by the directors. Persons who will act as company directors who will immigrate to Taiwan can address to our team for more details on this subject.
Furthermore, during the liquidation period in this country, the liquidator has to inspect and liquidate the company assets and draft the financial statements, as well as a property inventory.
Then, the liquidator has to submit the above mentioned documents to the supervisors in order to be examined and obtain the shareholders’ meeting approval, as well as to file them with the court.
The liquidator has to, through a public notice, oblige the company creditors to declare their rights of claims and distribute the rest of the assets to every shareholder according to the percentage of its contribution after ending the accounts of the company, collecting claims and repaying the debts – which include the tax liabilities. If you are a resident of Taiwan and you need legal assistance on closing your company, our team remains at your disposal.
After effectuating these liquidation matters, the liquidator has to draft an income and expenses statement and a profit and loss statement for the liquidation period in maximum 15 days, file it together with all the statements and records of accounts to the supervisors in order to be reviewed.
Our Taiwan company formation consultants can provide further details on this matter. We can also help entrepreneurs to set up a company in Taiwan.
Voluntary winding up of a company in Taiwan
A business can decide to choose a creditors’ voluntary winding up if its directors think it cannot, by reason of its responsibilities, go on doing business in the country.
The legal entity must appoint a liquidator or a provisional one, to wind up its business and file the required notifications as according to the Companies Act. Our Taiwan company registration advisors can provide further details on this subject.
If you have more questions about a Taiwan company liquidation, or for assistance to open a company in Taiwan, please contact us.