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Open a SPV Company in Taiwan

Open a SPV Company in Taiwan

A special purpose vehicle is a company that is created for a specific purpose. Another company may choose to open a SPV company in Taiwan for acquiring and managing a single asset or a group of assets, as well as to limit its exposure to risk, among other business uses and scenarios.

Creating an SPV requires business strategy, structuring planning, as well as assistance from a local team specializing in Taiwan company formation, such as our own experts. Once the foreign company determines the objectives for the special purpose vehicle, our team will assist them with compliance in terms of corporate registration, as well as with all relevant regulations.  

For investors that wish to open a SPV company in Taiwan, our team offers incorporation packages that take into account the needs of the foreign business, as well as the need to potentially act as a local representative, if the foreign business cannot have its own representative in Taiwan for the entire duration of the registration process.

How to open a SPV company in Taiwan

The special purpose vehicle is generally a limited liability company incorporated as per the Taiwan company registration requirements. A main trait and advantage of this business form is that it is a separate entity from its founder(s).

An important part of the process is to apply for the pre-approval of the business which is required in some cases. This is the reason why we recommend that foreign investors interested in setting up a special purpose vehicle, as well as companies in other business fields, reach out to our local team who can help them open a company in Taiwan.

Below, we briefly outline the main steps needed open a SPV company in Taiwan as a limited company:

  1. Decide on and reserve the company name;
  2. Prepare the documents to receive the approval for the business (you can seek specialized assistance from our team at this point);
  3. Prepare the company’s paid-in capital: two thresholds are possible in this case: less than 500 million TWD and more than 500 million TWD;
  4. Prepare the Articles of Incorporation, as well as other relevant documents such as the shareholder’s agreement, the appointment of the company directors, the identification documents for the shareholders and directors, letter of consent for the lease of the registration address (house lease letter of consent from the landlord), and others;
  5. Pay the registration fee (calculated as a percentage of the authorized capital or a minimum of 1,000 TWD (approx. 31 USD) and register the business.

Doing business in Taiwan

As previously mentioned, special approvals can be required when investors set up a company in Taiwan. The application for the approval of the foreign investment is done with the Department of Investment Review, located in Taipei City.

Depending on the uses of the special purpose vehicle, our team can provide detailed and personalized information about the requirements for the pre-approval of the business, as a first step before you start the process to open a SPV company in Taiwan.

After the registration of the limited company is completed, we remind investors that they will need to be mindful of the following tax compliance requirements for their Taiwan company:

  • The corporate income tax is 20%, to which a 5% surtax applies on undistributed earnings; The VAT in Taiwan has a 5% standard rate;
  • A company is a resident for tax purposes when its head office is located in Taiwan, such as would be the case of a Taiwan-based SPV company;
  • A 21% withholding tax applies to dividend payments made to non-residents; This can be reduced through a tax agreement;
  • Taiwan has entered into approximately 30 double tax agreements; Our team can give you details.

Opening a special purpose vehicle company can be a suitable risk reduction strategy and, for certain international businesses, the decision to open a SPV company in Taiwan can be a strategic one.

Contact our team if you are ready to start the process for company registration in Taiwan.