By establishing a branch in Taiwan foreign investors can extend their business and bring their products or services closer to the Taiwanese public. Without having a distinct legal personality from the parent company, a branch will not take by itself the major decisions and at the same time it won’t bear liability in front of the local Courts. One of our specialists in company formation in Taiwan is ready to explain to you the particularities of branches and to help you open one in Taiwan in compliance with the local legislation.
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Characteristics of a branch in Taiwan
The branch opened by a foreign company in Taiwan does not need a particular legal form in which to be organized. The branch is dependent on the parent company and usually follows the management and the strategy elaborated by it. This is why a branch does not necessarily need a director. The parent company bears responsibility for the actions performed by the branch in Taiwan.
When an investor wants to open a business in Taiwan and decides to set up a branch, he/she will have to register the branch with the Ministry Of Economic Affairs, R.O.C. The registration implies as well other steps such as name approval and identification of the parent company.
One of our consultants in Taiwan company registration matters remains at your disposal in order to clarify in more detail the procedure of opening a branch in Taiwan. Our lawyers in Taiwan can help you register a branch:
How to register a branch in Taiwan?
One of the preliminary actions which need to be taken by a parent company in order to set up a branch in Taiwan is to enter a tenancy agreement for a space. A branch can function in a commercial building anywhere in Taiwan. This company type can also be liable for the payment of VAT and thus, investors should verify if their activity will be charged with this tax. The branch also needs to comply with accounting procedures, which must be completed only by accountants in Taiwan.
The foundation documents containing the certificate of incorporation and the articles of association need to be legalized through the Taiwan Embassy in the country of origin. They can be further included in the application with the Ministry Of Economic Affair in Taiwan, so that the branch of the company to be recognized. Within 10 days, the authorities evaluate and decide whether the branch can be opened.
Feel free to contact our Taiwan company formation experts so that you can receive personalized help with the registration of a branch office for your company.