Obtaining a financial license in Taiwan is mandatory for banks, insurers, deposit taking companies, foreign exchange businesses and many others. The financial sector is subject to clear regulation and control and investors who open a company in Taiwan must follow the ongoing compliance requirements.
Our team can help you set up a company in Taiwan that will offer financial services. One of our local agents can answer questions about company creation and offer personalized assistance.
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The financial regulator in Taiwan
Companies obtain a financial license in Taiwan from the Financial Supervisory Commission (FSC). At the same time, banks are regulated by the Bank of the Republic of China (Taiwan) (CBC).
The two regulators work together to ensure the supervision of banks and other financial service providers and institutions. The FSC supervises and examines the financial market and as needed, audits financial institutions.
The CBC is the one that implements the monetary policy in the Republic and also handles foreign exchange regulations.
Foreign financial companies or branches of financial institutions also need to obtain a financial license in Taiwan. Offshore banking activities are not permitted.
Types of licensed financial activities in Taiwan
Investors who open a company in Taiwan that offers financial services will need a license for the following types of activities:
- Taking deposits;
- Offering mortgage loans;
- Credit card issuance;
- Foreign exchange money remittance services;
- Consumer lending;
- Trust business activities;
- Securities investment consulting services;
- Insurance (life and non-life);
- Electronic payment services;
- Financial information service activities;
- Fintech activities.
The licensing process is subject to clear steps and applicants are required to obtain prior approval for their activities before establishing the business. Additionally, a company must meet capital requirements in order to obtain a financial license in Taiwan. Our team can give you more details.
Conditions for obtaining a financial license in Taiwan
The licensing requirements differ according to the type of activity the company is being registered for. As such, the process is different for banks, compared to other financial services providers.
Below, our team lists the most important steps required to obtain a financial license in Taiwan for an onshore bank:
- Apply for the establishment permit; This is done prior to starting company registration in Taiwan;
- Present the business plan, the business promoters and their certifications;
- Fill in the application forms;
- Provide proof that the promoters deposit TWD 2 billion as the bank capital; This is accompanied by documents attesting to the source of the funds;
- Incorporate the legal entity;
- Make the capital injection;
- Apply for and obtain the banking business license from the FSC.
All companies interested in obtaining a financial license in Taiwan must have and maintain a physical presence either through a company limited by shares or a branch. Another option to enter the market is through a representative office, however, this business form will not be used for commercial purposes.
The Taiwanese financial market
The Financial Services Commission keeps records on the number of companies registered for its licensed sectors. Some data includes the following:
- There were 24 domestic registered life insurance companies and 4 branches of foreign life insurance companies;
- 17 entities were registered as non-life insurance companies and 6 branches of foreign non-life insurance companies;
- There are more than 30 domestic banks included in the Financial Institutions Directory;
- 15 financial holding companies are included in the Financial Institutions Directory.
If you would like to know more about the steps required to obtain a financial license in Taiwan, please reach out to our team.