Articles of Incorporation / help

Hi,

I’m in the process of registering a company, with the help of a friend filling in the forms in Chinese.
I’m at the last step and I’m filling in the docs regarding the articles of Incorporation.

Does anyone have any experiences with this and can advise on how to fill in this section:

"The Company dividends are ___% per year. The Company shall not pay dividends from the capital if there are no surplus earnings.

If there is profit at the end of each fiscal year, a ratio____ (or fixed amount___) of profit of the current year distributable as employees’ compensation shall be appropriated. However, the Company’s accumulated losses shall have been covered first."

Thanks!

Do you plan to pay out a dividend every year there are profits no matter what the prevailing economic conditions?

This US website reminds us that policy is a subjective decision.

Under the irregular dividend policy, the company is under no obligation to pay its shareholders and the board of directors can decide what to do with the profits. If they a make an abnormal profit in a certain year, they can decide to distribute it to the shareholders or not pay out any dividends at all and instead keep the profits for business expansion and future projects.

And this website has examples of different clauses you can adapt (and translate into Chinese) to suit any policy you come up with

Hi, thanks for your reply.
It’s only me in the company and I would like to decide at the end of each tax year what to do with the profits.
Any suggestion on how to write this so that’s in line with the regulations in Taiwan?

Also, any experience with the employees’ compensation?
Can it be zero and if not, what’s the minimum amount that it can be?

Thanks

You can write zero first. They will call you if they don’t agree with it.