Those who open a foundation in Taiwan do so for selected charitable civil society improvement purposes and follow the setup requirements in the Foundation Act. In this article, our team, which can help you setup a foundation as well as open a company in Taiwan, summarizes the main principles for the creation of a foundation.
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Laws governing foundations in Taiwan
The Foundations Act is the principal source of law concerning the establishment and operation of foundations. Those who open a foundation in Taiwan follow the rules for their registration and supervision.
According to law, a foundation is a “private legal person dedicated to public-benefit purposes”. Moreover, its property is provided by endowers. The Act defines two types of foundations in Taiwan, the government-endowed foundation and the public-endowed foundation. The latter can be set up by individuals or other legal entities interested in being involved in certain activities that provide aid for the community, environment, or the promotion of culture and religion.
Main requirements for foundations in Taiwan
Our team that specialises in company formation in Taiwan lists some of the key requirements followed by those who set up a foundation:
- The chosen name includes the word “foundation”;
- The registration documents are drawn up and submitted in Chinese. Our team, which can help you with company formation in Taiwan can also help you draw up the mandatory documents for a foundation;
- Those who open a foundation in Taiwan choose a principal office based in Taiwan. Subsequently, they can also establish a branch office, subject to approval;
- The initial endowment for the Taiwanese foundation must be sufficient to cover its establishment.
The following also apply after the steps to open a foundation in Taiwan are completed:
- The foundation can hire both foreign and Taiwanese citizens to work for the foundation;
- It must follow the tax filing obligations. Entities that meet certain regulations are exempt from income tax;
- The foundation can have its own bank account in Taiwan;
- It can recruit volunteers and engage in Government procurement bidding.
Foundation incorporation documents
For those who open a foundation in Taiwan, preparing the constitutive documents and submitting the application for its establishment approval are two essential steps.
Our team that can help you with company formation in Taiwan summarizes some of the main information that must be included in the foundation’s charter:
- The purpose of the foundation: environmental protection, healthcare improvement, education and/or art support, religious advancement, etc.;
- The name of the foundation: this must be an original one, it cannot be the same as the name of a foundation that is already registered in Taiwan;
- The total amount of endowment;
- Information about its directors: total number, qualifications, appointment;
- The period: in some cases, founders may choose to open a foundation in Taiwan only for a limited period or purposes. This is specified in its charter of incorporation.
Foundation registration
Once the charter is drawn up, the application to register a foundation in Taiwan with the Ministry of Justice will include:
- The application form;
- The charter of endowment;
- A list of endowed assets;
- Information about the directors and supervisors;
- The seal of the foundation;
- Work plan and anti-money laundering plan.
The general timeline to open a foundation in Taiwan is the following:
- The authorities communicate the approval or dismissal of registration within 60 days of the application receipt;
- In some cases, this period can be extended for another 30 days;
- The foundation directors submit a photocopy of the authorization to the competent court within 15 days of its receipt.
Other requirements may apply to those who wish to set up a foundation.Contact us for complete assistance during foundation or company registration in Taiwan.