Taiwan Business Guide - Management and Business Studies Portal

Market Entry
Establishing A Presence (CONTINUED)
Legal structures
Foreign investors in Taiwan can choose
whether to set up a company office, a
representative office, a branch office
or a job-site office, according to their
planned activities. A brief description
of each option is provided below. The
PricewaterhouseCoopers guide Doing
Business in Taiwan (www.pwc.com/tw/en/
publications/doing-business-in-taiwan.
jhtml) contains detailed information
about setting up a business in Taiwan.
Further information is also available from
UKTI in Taiwan.
Representative offices
Representative offices are often the first
step taken by foreign companies when
establishing a permanent presence in Taiwan.
They provide a vehicle through which the
foreign investor can undertake activities
such as market research, customer liaison
and support. Representative offices can
also organise business visits from company
headquarters, which can make the process
of obtaining business visas for visitors
much easier. Public-relations work and local
administration are also permitted. However,
a representative office cannot conduct sales
activities. This means they cannot sign
contracts, receive income or issue invoices
and tax receipts. Applications to establish
a representative office should be made to
the Taiwanese Ministry of Economic Affairs
(MOEA, www.moea.gov.tw).
Branch offices
Foreign investors wishing to open a branch
office must apply for a Certificate of
Recognition and then obtain a Certificate
of PSE (Profit-Seeking Enterprise) from
the relevant Taiwanese government
agencies. Special permits are required
for certain types of businesses. For more
details, contact the MOEA. Branch offices
can be used for companies that do not
plan to have their head office in Taiwan.
There is no minimum working capital
requirement if the branch’s activities relate
to international trade, but the head office
must remit sufficient funds to enable the
branch to operate. It must also appoint
a branch manager and a litigious and
non‐litigious representative, who can either
be Taiwanese citizens or foreign nationals.
Company offices
Foreign investors need to obtain approval
from the MOEA’s Investment Commission
to set up a company in Taiwan. Once
approval has been obtained, it is possible
for foreign investors, with the exception
of those working in certain restricted
industries, to establish an unlimited
company, an unlimited company with
limited-liability shareholders, a limited
company, or a company limited by shares.
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