COMPANY IN TAIWAN
Taiwan is not recognized as a state by most of the international community. Nevertheless, business environment in Taiwan is very positive, and Taiwan ranked 15th place in the World Bank’s Doing Business 2020 report. In addition, Taiwan has one of the world’s best regulatory systems to protect minority investors.
COMPANY FORMATION IN TAIWAN
Despite political disputes, his economy is thriving. Company registration in Taiwan can take place under four types of companies. Establishing a company may take the form of a limited liability company, in which there must be at least one partner, and the liability of shareholders is limited to the amount contributed. A joint-stock company must consist of at least 2 partners. The issue of responsibility is the same as in the limited liability company. Meanwhile, in a general partnership, liability for obligations is unlimited. In the Taiwanese equivalent of a limited partnership, there are 2 types of partners: active partners – who bear unlimited liability, and sleeping partners – whose liability is limited. In none of the above companies, the law does not require a minimum capital contribution, but if it is to be paid – in order to open an account for the company, the director’s personal visit to a bank in Taiwan is required. Open company in Taiwan is not associated with excessive formalities.
SETTING UP A COMPANY IN TAIWAN – BENEFITS
The country has a very oriented international economy, and the trade balance shows a significant excess. In addition, the strategic geographic location is also a plus, as the country is the gateway to China and ASEAN markets. Moreover, Taiwan has a large industrial base (for example, it is the fourth largest electronics producer in the world) and strong R&D capacity (supported by public funds). A stable financial situation and a rich, skilled and inexpensive workforce also remain important when it comes to company registration in Taiwan.
TAXES IN TAIWAN
From January 1, 2017, the Act on the avoidance of double taxation and the prevention of tax evasion in the field of taxes on income in relations between the Republic of Poland and the territory to which the tax law belonging to the Minister of Finance of Taiwan applies. According to the agreement, the income of an enterprise situated in a particular territory is taxable only there, unless the enterprise is established in the other country. Capital gains are treated as ordinary income and taxed at the standard corporate rate. Bad debt losses can be deducted when certain legal procedures or time requirements are met. Economic operators must register with the National Tax Office for each of their activities permanently resident in Taiwan.
ACCOUNTING IN TAIWAN
The fiscal year for an average business in Taiwan is typically the calendar year, running from January 1 to December 31, which is the same as the tax year for tax purposes. Additionally, each company has to prepare a balance sheet and profit and loss account for each financial year.
There is a very wide catalog of names in Taiwan that you can choose for your business. However, registration of the company should be preceded by checking the availability of the name.
ESTABLISHING A COMPANY IN TAIWAN AND LEGAL ACTIVITY
Open business in Taiwan is always associated with the requirement of its legal operation. Economic activity cannot be used to legitimize illegal activities.
READY-MADE COMPANY IN TAIWAN
It is also possible to buy a company in Taiwan that is already registered. The rule is that a ready-made company in Taiwan has been in operation for a relatively short time, it had not been operating before, but was created for the purpose of selling it. However, due to the economic reality, the purchase of a company in Taiwan may turn out to be unprofitable.