Newsletter
Amendments to the Rules on the Establishment of a Branch or Representative Office in Taiwan by Profit-Seeking Enterprises from Mainland Area
The Amendments to the Rules on the Establishment of a Branch or Representative Office in Taiwan by Profit-Seeking Enterprises from Mainland Area were promulgated and announced by the Department of Commerce, Ministry of Economic Affairs on 10 December 2014. The main amendments are as follows:
1. If a profit-seeking enterprise from the Mainland area intends to establish a representative office in Taiwan, it must meet certain criteria such as minimum incorporation period, paid-in capital amount and business scope, with some exceptions.
2. An application for a profit-seeking enterprise from the Mainland area to establish a branch in Taiwan will be denied if its purpose or business is politically, socially, or culturally sensitive, affects national security, or has an adverse impact on national economic development or financial stability, or the enterprise itself is invested by the military sector of the Mainland area or for military purposes.
3. A post-establishment audit mechanism is added. In the year following the establishment of a representative office, an annual business plan, an annual budget, an annual work report and an annual expenses report are required to be submitted to the competent authorities within the prescribed time limit. For verification of such reports, the competent authorities may send staff to the representative office.