471
[ESTABLISHING A BUSINESS ENTITY IN TAIWAN]
as long as such amount is sufficient to cover the cost of the incorporation of the company. An audit report issued by a certified public accountant (CPA) is required when the company applies for the incorporation registration. However, certain regulated businesses may require a minimum amount of capital. In addition, if such company intends to hire expatriates other than the general manager to work in Taiwan, the minimum paid-in capital should be NT$5,000,000. If the paid-in capital amount is insufficient to cover the cost of the incorporation of the company, the government authority will not approve the incorporation registration. If the company engages in a manufacturing business, it must complete the registration of its factory before it may commence the manufacturing and processing of its products. Usually, it will take about 7 to 8 weeks to complete the IC approval and registrations described above. Company limited by shares A company limited by shares is required to have at least one corporate or two individual shareholders as its promoters. The company must first reserve a corporate name with the MOEA. If any of the shareholders is a foreign national, it must apply with the IC for foreign investment approval. Then the shareholders must subscribe to the shares and pay the subscription price. For a company with more than one shareholder, the promoters are required to convene a shareholders' meeting to elect the director(s) and the supervisor(s). If a company has only one corporate shareholder, the sole shareholder must appoint representatives to act as the director(s) and supervisor(s). The director(s) so elected or appointed must then hold a board meeting to elect a person from among
themselves to serve as the chairman of the board. In addition, a business registration and tax registration must be filed with the local tax authority before the company may commence its business operations. The capital requirement for limited companies as mentioned above also applies to a company limited by shares. Similarly, if the company engages in a manufacturing business, it must complete the registration of its factory before it may commence the manufacturing and processing of its products. Usually, it will take about 7 to 8 weeks to complete the IC approval and registrations described above. 3. Governance, Regulation and Ongoing Maintenance
Brief summary of regulation of each type and ongoing maintenance, reporting requirements
•
Limited company Directors
A limited company must have at least one and not more than three directors elected by two-thirds or more of the shareholders from among themselves to conduct business and represent the company. If there is more than one director, the articles of incorporation of a limited company may stipulate that a chairman be elected from among the directors by a majority of the directors, to be the responsible person of the company. There is no requirement for a limited company to hold meetings of the board of directors. Financial audit At the end of each fiscal year, the directors shall prepare the following statements and records and shall send the same to each shareholder for approval:
ILN Corporate Group – Establishing a Business Entity Series
Made with FlippingBook Ebook Creator