CONVERSION OF A FOREIGN COMPANY BRANCH OFFICE INTO A SUBSIDIARY

11/01/2002

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Interpretations issued on 31 July and 16 August 2002 by the MOEA describe two ways open to a foreign company to convert its Taiwan branch office into a Taiwan subsidiary:

Under Article 131 of the Company Law, a foreign company may set up a Taiwan sub-sidiary by investing in it the whole of the as-sets and operates of its Taiwan branch office.

Under Article 32 of the Corporate Mergers and Acquisitions Law, applying mutatis mu-tandis Article 33, a foreign company may demerge the entire assets and business of its Taiwan branch office to set up a Taiwan sub-sidiary.