Sabine Lin delivered a talk on January 28, 2021 to Employment Gold Card holders in Taiwan. She gave us a bird's eye view of different forms of business and reminded the entrepreneurs of key substantial factors one should bear in mind.

1. HOW TO START A
BUSINESS IN
TAIWAN
Jan 2021
Jan 2021
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2. 1
WHO ARE
WE?
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3. 2
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4. 3
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5. 4
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6. 5
First Thing: Know
yourself!
• How many founder(s)?
• Time to devote to the new business? Full-
time? Part-time?
• Do you need to hire employees?
• Type of initial outside investment?
• Any idea about the management
arrangement?
• Arrangement for shares – anyone asks for
holding preferred shares?
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7. 6
Limited
Company
• not a
company
limited by
shares
• Investment
=>
contribution
 Close Company
• a company limited by
shares
• nature of close
• < 50
shareholders
• restriction on
share transfer
 Company
Limited by
Shares
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8. 7
Composition of Shareholders/Founders
LIMITED
COMPANY
CLOSE COMPANY
COMPANY LIMITED
BY SHARES
At least 1
person
• At least 2 individuals but
cannot exceed 50
• Can be 1 shareholder if
the founder is a juristic
person
• At least 2
individuals
• Can be 1 if the
founder is a
juristic person
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9. 8
Form of Investment
Limited Company Close Company Company Limited
by Shares
 Cash
 Credit right
 Asset
 know-how
 Cash
 Credit right
 Asset
 know-how
 Labor/efforts (subject to
certain restriction)
 Cash
 Credit right
 Asset
 know-how
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10. 9
Composition of Management
Limited Company Close Company Company Limited
by Shares
1 Director Board : 3 Director+1 Supervisor
Exception:
 1-2 Directors + 1 Supervisor
 No Board
 Stipulated in the AOI
Board : 3 Director+1
Supervisor
Exception:
 1-2 Directors + 1
Supervisor
 No Board
 Stipulated in the AOI
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11. 10
Shares
LIMITED
COMPANY
CLOSE COMPANY COMPANY LIMITED
BY SHARES
Capital contribution
(Not shares)
 Par value
 No par value
 Can be non-physical securities
 Par value
 No par value
 Can be non-physical
securities
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12. 11
Shareholders Voting Right Arrangement- Preferred
Shares
Limited Company Close Company Company Limited
by Shares
Can be on a pro-rata basis
according to the amount of
capital contribution
Eg.
$10K : $5K
= 10 votes: 5 votes
= 2 vote : 1 vote
 Common shares: one voting right
per share
 Preferred shares:
• Multiple voting rights
• Veto rights
 Deferred shares:
• Limited rights
• No rights
 Common shares: one voting right
per share
 Preferred shares:
• Multiple voting rights
• Veto rights
 Deferred shares:
• Limited rights
• No rights
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13. 12
Other Fund
Raising
Tool
Limited
Company
Close
Company
Company
Limited
by Shares
No • Corporate
Bond
• Convertible
Bond
• Corporate
Bond with
warrants
• Corporate
Bond
• Convertible
Bond
• Corporate
Bond with
warrants
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14. Let’s set up the company!
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15. 14
What you need to prepare in advance?
 Name – Chinese (and English name)
 Documents required
 Preparatory office
 Opening a bank account
 Approvals required
For more information: https://www.moea.gov.tw/MNS/populace/content/ContentMenu.aspx?menu_id=95
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16. 15
Name of the Company
Chinese name- MUST
• Must be presented/spelled in English
• Must state it in the Articles of Incorporation
• Better to register it with Bureau of Foreign Trade, MOEA
Name in language other than Chinese ?
• Name reservation application
• Consider IP registration protection
IMPORTANT REMINDER
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17. 16
Application Journey …
1) Name reservation 2) Preparation
3) Company
registration
•Application form
•Better to choose
more than one
name
•Can check English
name on the
foreign trade
bureau at the
same time
•Reservation
period : 6 mos
•Foreign
investment
application->
obtaining the
approval
•Prepare chops
(corporate chop
and chop for
responsible person
of the company)
•Opening bank
account (in the
name as a
“preparatory office”
•Rent an office
•For documents
required , see the
next slide.
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18. 17
Documents required for Company registration
 Application Form
 FIA approval- approval from Investment Commission
 Articles of Incorporation
 Meeting minutes of initial shareholders
 Meeting minutes of Directors
 Register of initial shareholders
 ID documents of directors and supervisors
 Undertaking letter of directors
 ID documents of initial shareholders
 Documents relating to office (consent letter of the owner of
the building/office; copy of the lease agreement)
 Capital verification report issued by CPA
 Corporate registration card (2 copies)
 Application fee
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19. Need More
Information?
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