Forming a local company - process

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Re: Forming a local company - process

Postby Mr He » 23 Aug 2011, 09:10

You do not always have to bring money in from abroad.
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Re: Forming a local company - process

Postby Feiren » 23 Aug 2011, 09:31

Lord Lucan wrote:
hirobo wrote:Hi Lord Lucan, what are the requirements in applying in the Foreign Investment Commission? Thanks


Not sure. My accountant did it. Basically they have to approve a foreigner setting up a foreign-invested enterprise here. They look at business scope and investment amount, I think. This is not the sort of thing I thing one can do without an accountant. As far as I can tell you have to be a foreigner, bring in the money from abroad, and have a certain business scope that is allowable for foreign investment.


Actually, I think you can probably do this yourself. Or just go to the Investment Commission and ask them for help. It's just a matter of ticking off a few boxes on a form (in Chinese of course).

In the end, you may well save time, aggravation, and money by paying someone to do this for you.

BTW, Lord Lucan's guide earlier in the thread contains just about everything you need to know. Buy the man a drink the next time you see him.
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Re: Forming a local company - process

Postby brianstorming » 20 Jan 2012, 17:12

Lord Lucan wrote:
6. The bank verifies this and you take the verification to the FIC who issue another letter. Note the bank will send back to origin any amount that goes above NT$500k (the allowed amount). This will cause confusion at the bank. If you send the US dollar equivalent of NT$500,001, they will (and must by law) send the NT$1 back whence it came and may charge you for the privelege. Bonkers, eh?


Lord Lucan wrote:10. You get your work permit. I needed to submit a photocopy of my university degree. Don't think just because you're an investor you'll get an ARC as a Foreign Investor. You need to invest over US$200k for that! (And you won't need a work permit, the permission to reside in Taiwan will be from the Foreign Investment Commission not the Council of Labour Affairs and will be stated in the FIC letter. If this applies to you just have your butler drive the Rolls down to the cop shop and they'll ARC you up.)



Hi all

Thanks for this great post, indeed a perfect guide !
However I'd like to get some more clue about these two steps... when you say they reject everything upper 500,000, you mean that if you invest like.. 1,000,000 you will have to make 2 different transfer ? :ponder:

And about the step 10. You mention the amont of US$200K... is that the amont of investment that make you automaticly have and ARC/working permit without any education proof ? With TW$900K you will have to give educations proof to get though the arc and work permit procedure ?


Thanks very much again

Quick presentation of myself by the way, since I'm new here. I just came back home (France) from Taiwan where I spent the last year. Planning to go back as fast as I can with some business projects :) I reaaally enjoy this forum wich is a great source of informations for me... far from Taiwan make it not really easy to talk with CPA over emails...

:bow:
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Re: Forming a local company - process

Postby mamaky » 14 Jun 2012, 11:10

Hi, I need advice here.

My business partner and I need to form a local company. I am a non-resident, but have Taiwan ID and Passport, while he is a foreigner. We've agreed to a certain split in the ownership of the company.

Can someone advise on how we might go about forming this, or who we can call/talk to?

Thanks in advance.
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Re: Forming a local company - process

Postby Lord Lucan » 19 Jun 2012, 12:22

brianstorming wrote:
Lord Lucan wrote:
6. The bank verifies this and you take the verification to the FIC who issue another letter. Note the bank will send back to origin any amount that goes above NT$500k (the allowed amount). This will cause confusion at the bank. If you send the US dollar equivalent of NT$500,001, they will (and must by law) send the NT$1 back whence it came and may charge you for the privelege. Bonkers, eh?


Lord Lucan wrote:10. You get your work permit. I needed to submit a photocopy of my university degree. Don't think just because you're an investor you'll get an ARC as a Foreign Investor. You need to invest over US$200k for that! (And you won't need a work permit, the permission to reside in Taiwan will be from the Foreign Investment Commission not the Council of Labour Affairs and will be stated in the FIC letter. If this applies to you just have your butler drive the Rolls down to the cop shop and they'll ARC you up.)



Hi all

Thanks for this great post, indeed a perfect guide !
However I'd like to get some more clue about these two steps... when you say they reject everything upper 500,000, you mean that if you invest like.. 1,000,000 you will have to make 2 different transfer ? :ponder:


Sorry for the late reply. Any amount over the amount on the form will be sent back. I used 500k because it was the minimum. You have to make a turnover of 6 times your initial investment amount to renew the ARC, so 6 times 500 is 3m. You'll probably be putting in more than 500k. You can always do that after the company is set up.

brianstorming wrote:And about the step 10. You mention the amont of US$200K... is that the amont of investment that make you automaticly have and ARC/working permit without any education proof ? With TW$900K you will have to give educations proof to get though the arc and work permit procedure ?


At the time I did it, an investment of US$200k or more gets you a residence permit from the Foreign Investment Commission as your sponsoring entity in your capacity as a foreign investor. They told me a person in that category would not need a work permit as such.
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Re: Forming a local company - process

Postby mamaky » 21 Jun 2012, 12:22

Got my answer.

Here's our scenario:
Two people forming a business: 1 is a non-resident with Taiwan Passport and Taiwan ID, and 1 a foreigner.

- Foreigner is not going to work in Taiwan. So no ARC or Work Permit needed.

I was quoted $NT17,500 by a local Acct Firm, whereas I was quoted $NT25,000 from Victor over at JusRegal CPA (they run the Ads here). However, JusRegal was very professional, thorough, and fluent in English. If I required other services besides Company Registration, I would probably go with JusRegal CPA.

Company Registration Overview:
1. The entire process will take 5 weeks
2. One person must be the 'Director' of the company. This person will be the main point of contact for all legal/admin matters. This has no impact on shareholder value.
3. The foreigner must appoint an 'Agent' (aka Power of Attorney) in Taiwan prior completing company registration. This is a way for the government to verify that the person is real. The agent must be someone with a Taiwan ID and Passport. Agent would need to go to MOEA to sign papers.
4. The 'Director' will have an interview with Tax Personnels.
5. No minimum working capital needed.
6. Must have a business bank account setup before interview with Tax Personnels.
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Re: Forming a local company - process

Postby Mianbao » 22 Feb 2014, 23:04

I just went through the whole process on my own. I set up a business (商業), not a company, however. (I'm still not certain exactly what the differences are, but for my business, either would have been fine, with no difference in my business practice or taxation.)

It's fairly straightforward, but there is little to no information out there on how to get it done--not for free at least. It took me about two months in total, and less than NT$4,000 in costs (not counting my "office," which I'm paying NT$2,625/mo. for in Taipei City).

If anyone has questions about the process, feel free to PM me.
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Re: Forming a local company - process

Postby Feiren » 23 Feb 2014, 12:28

Hmmm... there is no type of business entity called a 商業. Perhaps you set up a sole proprietorship? The big difference is limited liability. Also a sole proprietorship cannot obtain work permits for foreign employees or managers.
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