Entity Type | CompanyLimited by Shares | Limited Company | Branch | Representative Office |
---|---|---|---|---|
Applicable | Large or medium size foreign investors | Small or medium size foreign investors | Foreign investors expect the Taiwan branch would gain high profits and consider tax savings | Undertake only promotional and liaison activities in Taiwan |
Minimum Capital | No limit, but must be sufficient for setup costs. | No limit, but must be sufficient for setup costs. | No limit, but must be sufficient for setup costs. | N/A |
Minimum Number of Shareholders | 1 corporate or 2 individuals | 1 corporate or 1 individual | Owned by head office | Owned by head office |
Management | 3 directors and 1 supervisor | 1 director (maximum of 3 directors) | 1 branch manager and 1 legal representative (can be same person) | 1 legal representative |
Limited Liability Protection | Yes | Yes | No | No |
Voting Rights | 1 voting right per share | Each shareholder have 1 voting right, unless specified in the Articles of Association | None | None |
Operate Business | Yes | Yes | Yes | No |
Carry-out Importing and Exporting Activities | Yes | Yes | Yes | No |
Be a Shareholder of Another Entity | Yes | Yes | No | No |
Open a Bank Account | Yes | Yes | Yes | Yes |
Issue Stocks to Public | Possible | No | No | No |
Conversion to other entity type | No | Can convert to company limited by shares | No | No |
Statutory Audit Requirement | Required if paid-in capital is over NTD$ 30 million | Required if paid-in capital is over NTD$ 30 million | Required if working capital is over NTD$ 30 million | No |
Business Tax Rate (VAT) | 5% | 5% | 5% | Do not need to file VAT |
Income Tax Rate | 20% | 20% | 20% | N/A |
Withholding Tax Rate on Distribution of Earnings | 21% | 21% | 0% | N/A |
Tax Rate on Undistributed Retained Earnings | 5% | 5% | 0% | N/A |
Capital Gains Tax on Share/Interest Transfer | No | Yes, subject to income tax | N/A | N/A |
Transfer of Shares / Interest | Shares can be transferred freely. | Must be approved by members. | N/A | N/A |
Period Required for Incorporation | 1~2 months | 1~2 months | 1~2 months | 2-4 weeks |
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