Starting my own company

Business Money
21

SECOND STEP

Apply to the Investment Commission (IC) of the MOEA for foreign investment approval.

Required Documents:

  1. For individual investors:
    Two Copies of passport. The passport holder must write his address on and sign the copies.

  2. For corporate investors:
    Copy of the Official Certificate of Incorporation or the form of Certificate of Incorporation (PM me for a specimen of this form … ask for “Specimen A”);

  3. Power of Attorney authorizing an attorney at law to handle all investment applications (PM me for a specimen of this form … ask for “Specimen A” and “Specimen C”).

*Note: The above documents in item 2 and in item 3 must be authenticated by the Embassy, Consulate, or Representative Office of the Government of the R.O.C. in the country in which the individual investor resides or in which the headquarters of the corporate investor is located.

Required Information:

  1. Investor roster, including the names and respective capital contributions.

  2. Composition of total capital investment:
    (The minimum capital requirement for a company limited by shares (corporation) is NT$ 1,000,000 which is approximately US$ 33,000)

(1) Total investment in the form of share capital provided by the investor(s):

The amount of foreign currency equivalent to NT$____________, including:

a) Cash: The amount of foreign currency equivalent to NT$ __________, of which ________________ (in foreign currency) will be held in reserve and remitted out again for purposes of _________________________.

b) Estimated value of imported machinery and equipment for use by the new company: _______________ (in foreign currency) which is equivalent to NT$ ____________; Estimated value of machinery and equipment purchased locally for use by the new company: NT$ ________.

c) Estimated value of raw materials imported for use by the new company: ____________________ (in foreign currency) which is equivalent to NT$ ______________; Estimated value of raw materials purchased locally for use by the new company: NT$ _____________.

d) Value of patent(s), trademark(s), copyright(s), know-how or other intellectual property right(s): NT$ ___________ (please provide detailed calculation method and supporting documentation).

(2) Investment in the form of loans provided by the investor(s)*:

_______________ (in foreign currency) which is equivalent to NT$ ____, of which:

a) __________________ (in foreign currency) will be held in reserve to be used for________________________________.

b) _________________ (in foreign currency) will be exchanged for NT$ ________ for purposes of _____________ (provide a plan detailing the purpose and distribution of such monies together with related documentation)

  • Provide related loan agreements and plans

(3) Investment by domestic investor(s): NT$ ____________

Required Time:

From three days to two months depending on the complexity of the investment project. For investment by cash only, the approval normally will be granted within one week.

continued…

22

THIRD STEP

Open a bank account with a local bank in the name of the preparatory office of the new company.

Required Documents:

  1. IC approval letter;
  2. Banking documents.
  3. Chops of the preparatory office and the representative.

*Note: Most banks will require the representative of the new company to sign the banking documents in the presence of the bank. Contact the bank that the new company would like to deal with in advance for particular requirements regarding document preparation.

FOURTH STEP

Remit the investment capital into the new company’s bank account.

*Note: The remittance of the investment capital must be made by order of the investor(s). In cases where there are several investors, one of them may remit the total investment capital on behalf of all investors.

continued…

23

FIFTH STEP

Apply to the IC for examination of the remitted investment capital.

Required Documents:

  1. Notice of Inward Remittance;
  2. Foreign Exchange Memo;
  3. Certificate of the deposited amount in the bank account (issued by the bank).

Required Time: Approximately one week.

continued…

24

SIXTH STEP

Apply to the MOEA for registration of the new company’s incorporation.

Required Documents and Information:

  1. Minutes of the new company’s promoters’ and directors’ meeting*;
  2. Articles of Incorporation;
  3. Shareholders Roster;
    (The above documents should be prepared by an attorney)
  4. Appointment Letter appointing an individual(s) to represent the corporate investor as a shareholder in the invested new company (PM me for a specimen of this form … ask for “Specimen D”). If the new company is invested in by only a single corporate investor, use the Specimen E rather than Specimen D for the appointment letter; (PM me for a specimen of this form … ask for “Specimen E”).
  5. List of directors and supervisors;
  6. Copy of passport of the representatives appointed by the corporate investor to be elected as directors and/or supervisors. The holder of the passport must write down his address and sign on the copy;
  7. Letters of Consent signed by the Chairman, Directors and Supervisor(s) (PM me for a specimen of this form … ask for “Specimen F”);

[Each Director (Supervisor) must sign and issue a Letter of Consent for the position held as Director (Supervisor). The Chairman must also issue a Letter of Consent for the position held as Chairman. If the Director (Supervisor) is the representative of the corporate shareholder to be elected as director (supervisor), he must indicate "the representative of (name of the corporate shareholder) " next to his signature.]

  1. A C.P.A. audit report regarding the total capital of the new company;
  2. The address of the new company; and
  3. Chops of the new company, all promoters, directors and supervisor(s). (An attorney can prepare the chops for all promoters, directors and supervisors)

*Note: The “promoters’ meeting” refers to the first shareholders’ meeting.

Required Information:

The new company must have an office space located in the zoning suitable for the business in which the new company is engaged.

Government Fee: Total authorized capital x 1/4000 + NT$ 600.

Required Time: Approximately two weeks.

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25

SEVENTH STEP

Apply to the local tax office for registration as a profit-seeking enterprise (Business License).

Required Documents:

Copy of the Use Permit License of the office building*.

*Note: A Use Permit License indicates the zoning of the office building, which must be suitable for the business in which the new company is engaged and which is subject to the rules promulgated by the local government. In addition to the Use Permit License, the authority-in-charge sometimes requests other documentation be provided to determine the compatibility of the zoning and the business purpose and activities of the new company.

Government Fee: NT$ 1,000.

Required Time: Approximately two weeks.

EIGHTH (and final) STEP

Apply to the Board of Foreign Trade for registration as an import/export company.

Required Information: English name of the new company

Required Time: Approximately three days.

*Note: If the business of the new company requires special permission from an authority, additional applications must be filed before and/or after the registration of the incorporation of the new company, depending on the nature of the business and the relevant governing regulations.

26

Thanks for the info. Tigerman. That ‘big picture’ is really helpful.

27

Does anyone have the procedure for registering as the representative of an offshore corporation? That supposedly allows “touting” and introduction of said company’s services, and affords an ARC to the rep, but doesn’t entail tax problems. With legal residence rights through that, a person could conceivably freelance, right?

28

Check out OIL

offshore-inc.com/public/index.php

They’ll set you up with a BVI, Somoa, Cayman, or whatever tax haven you want to set up to avoid which ever tax jurisdiction you are trying to avoid.

Generally, you can buy existing companies with years of life with clean records that will only take a week or two to assign. Otherwise a new corp with your own name will require going through the name search procedures which may take more than 2 weeks up to a month.

Plus they have reps in TW. Good people.

Hope that helps.

29

No, I mean merely the process for becoming the official rep of an existing legitimate offshore entity.

30

Assuming you already have a legitamite offshore entity, see Tigerman’s step six.4

foreign ownership in a TW co. means your incorp options are: a rep office, a branch, or foreign owned corp. each has its own tax consequences, foreign rep limits, and local operation limitations, which you should consult an accountant with offshore expertise or a tax lawyer to clarify. TW being an export driven country has plenty of local accountants with this expertise.

31

All very very usefull information, but theres still a few things I’m not so clear about.
1: Is it possable to set up a company with out having the NT500,000?
2: Is an offshore entity the best/easist option?
Thanks for anymore advice anyone has

32

When I set up a company some years back with a Taiwanese partner (who did the dirty work), we borrowed the required capital for a week and just paid the interest during that period. I don’t know where he got it from though.

Probably the same thing as the “show us $X in your bank account to get a student visa extension” or whatever.

33

I’m fed up with my employer so I was wondering how to set up a company, but I can not show up with this kind off money.

100 000NTD is posible, but not mutch more.

I do nead to be able to get a ARC trough a company I set up.

34

You need more startup capital. 100,000 NTD isn’t enough. Beg, borrow, plead, tin cup, whatever, but you need that half mil or else you’re SOL.

35

What I have heard is that you won’t get a work permit when putting in NT$500k - you will literally need 10 times at much.

If you have a local spouse, then things are much easier. I use a gong su Hang Hao for my dealings, and it works.

36

OK.

Borrow me 400000NTD :unamused:

37

If you already have your residency set up, you should look into a proprietorship. They are cheap to set up and run.

38

However if you are a US Citizen you’ll end up paying far more in taxes than with a Limited Company. The extra TW$50,000 is a minor fee to not get screwed on taxes.

39

I have the ARC, but I’m fed up with the company I work for so I’m looking into doing something on my own.

40

However if you are a US Citizen you’ll end up paying far more in taxes than with a Limited Company. The extra TW$50,000 is a minor fee to not get screwed on taxes.[/quote]

Note that they are tightening the application of the rules - nowadays they actually prosecute people, who borrow the NT$500k registered capital, and who pull them out of the company after 3 days. If they catch you, you are looking at doing time.

Thank God I am not a US citizen - no stupid rules like that in DK.