Investors who open a crypto company in Taiwan enjoy access to a modern and well-established market. A draft legislation aims to regulate this sector and to set the basis for a crypto license in Taiwan.
Virtual asset services providers (VASP providers) are presently required to observe a set of rules, and lawmakers are preparing further regulations for this evolving business sector. In this article, our team specializing in company formation in Taiwan discusses the basic steps and requirements for crypto company creation.
For more information about the need to obtain a crypto license in Taiwan, please do not hesitate to discuss it with our local team specializing in opening companies in Taiwan.
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How to open a crypto company in Taiwan
The main steps for company registration in Taiwan are also respected by foreign and/or local investors who wish to offer virtual asset services.
Our team lists the main ones below:
- Choose the legal structure: choices include the limited company, the company limited by shares, or the branch;
- Obtain permission to do business: this is required for most business forms; our team can help you;
- Decide the shareholding structure: at least 1 individual or 1 company and at least 1 director;
- Meet the minimum capital requirements: at least NTD50,000 for the limited company;
- Prepare the documents: these are the certificate of incorporation and documents concerning the founder(s);
- Register the business: companies are registered with the Ministry of Economic Affairs; company name registrations are also submitted to this authority as part of the process.
The VASP license in Taiwan
Taiwan is keen on creating the framework and the conditions for investors who wish to invest in cryptocurrencies and blockchain technology, and generally provide virtual asset services.
The regulatory environment is evolving and, as such, lawmakers are considering certain measures for consumer and investor protection. A key element is the need to obtain a crypto license in Taiwan.
Cryptocurrency exchanges, as well as other services provided by virtual asset service companies, are subject to licensing by the Financial Supervisory Commission.
In addition to being licensed, investors who open a crypto company in Taiwan will need to observe the provisions of the anti-money laundering laws. We list some key regulatory issues below:
- Security token offerings are subject to the Securities and Exchange Act;
- Platforms that engage in security token offerings need to obtain a securities deal license; This can be seen as a crypto license in Taiwan;
- Companies in this business sector follow money laundering control measures;
- According to the Money Laundering Control Act, companies engaged in this business sector report their object of activity to the Ministry of Justice. Our lawyers can give you more details;
- Investors who open a crypto company in Taiwan observe record-keeping requirements, pay attention to suspicious transaction reports, and have a thorough customer due diligence process in place.
Taiwan VASP company taxation
Not only do businesses need to be aware of the legal updates and the requirements for a VASP license in Taiwan, but they also need to be aware of the taxes that are due when engaging in business activities in this jurisdiction.
If you want to set up a company in Taiwan, the following taxes are relevant:
- 20% corporate income tax rate;
- 12% on the portion of income above NTD 500,000 as a separate alternative minimum tax for certain profit-seeking companies based in Taiwan;
- 5% surtax on undistributed earnings;
- 5% standard value-added tax, with reduced rates of 0%, 1%, or 2%.
Our team can give you more details about tax compliance for cryptocurrency companies.
Contact us if you want to know more about the need for a crypto license in Taiwan, as well as when you need assistance to open a company in Taiwan.