Taiwan will enact Regulations Governing Approvals of Chinese Investment to Taiwan and Regulations Governing Approvals of Chinese Investment for Branch & Rep. Office in Taiwan on June 30, 2009, which means it will 100% open such market to Chinese investment on up to 100 sectors. For responding this action, mainland China implements the related Notice on May 17 and releases the procedures of approval of Taiwan investment based on Administrative Measures on Offshore Investment.

Chinese enterprise Taiwan rep. office is the first choice for investment in Taiwan. It needs not registered capital, and is

easy to strike off. Except issuing invoice, rep. office can receive order, purchase, make after-sale service, and hire employees, etc. If combined with bonded warehouse, it can perform almost the same function as subsidiary. Rep. office pay no CIT, not like branch and subsidiary need to pay 25% CIT, and no withholding tax. When needing collect money and issue invoice in Taiwan, rep. office can be upgraded to branch. The following company or personal are suitable to set up rep. office / branch:
1. Chinese domestic manufacturing factory; 2. Chinese domestic business / trading co; 3. Chinese domestic service co.; 4. Foreign-owned co. / factory based in China; 5. Taiwan factory / co. based in China (could set up rep. office / branch / subsidiary back in Taiwan); 6. Chinese personal intending to explore Taiwan market.

192 sectors open for Chinese investment: 1. Manufacturing (64 sectors): household electrical appliances, computer, mobile photo, medical appliances, automobile, bicycle & their components; textile, rubber & its products, plastic & its products, special used machinery, generating equipment, etc; 2. Service Industry (117 sectors): shopping mall, super market, restaurant, chain store, physical distribution, wholesale; shipping, air freight, sightseeing hotel, Second Category Segments(value-added service mainly); 3. Public Construction (11 sectors): harbor, airport and tourism, etc.

1. Legal representative: one agent in contentious for legal affairs and one manager (both Chinese and Taiwanese are acceptable, and can be held by same person); 2. Registered capital: NTD 250,000 (RMB 55,000) and should notarized by CPA; 3. Taxation: 0% CIT for rep. office / 25% CIT for branch, 6-40% PIT, NTD 74,000 (RMB 17,000) monthly tax exemption; 0% withholding tax for branch; 4. Business visa (90 days): Rep. office / branch can apply or entrust agents to apply business visa. It can be done in 15-20 days; 5. Running capital: The running capital in Taiwan is almost the same as that in Shanghai or Beijing. It is nearly 100-150 thousand if rent a 50m² –large office and employ one Taiwanese. Detail expenses as right table.

It requires approval by National Commerce Ministry for those direct investments to Taiwan under the name of Chinese company. To avoid such complicated procedures, any company or personal can invest in Taiwan via offshore company. China put strict supervision on foreign exchange, but not in Hong Kong and Macau, so it is fast for approval of offshore company. Taiwan rep. office and branch formation shall be applied to Taiwan Ministry of Economic Affairs.

Setting Taiwan rep. office (branch / subsidiary) by offshore company can keep profit overseas and avoid risk. If register in Belize, where is with good image and diplomatic relation with Taiwan, the legalization can be done fast and easily. Concerned with foreign currency out and in, you can choose HK company as total holding co. (THC) for receiving foreign currency without block. Therefore, this HK company (THC) and Belize company (holding Taiwan rep. office or branch) structure is most effective and reasonable for Chinese investment to Taiwan.

【PPM】With 5 branches in Taipei / Taichung / Tainan / Kaohsiung / Hsinchu, and 27 branches in major cities in mainland China, PPM offers you one-step services on Taiwan branch formation as well as office rental and employees recruitment services in Taiwan. We guarantee your case with 100% refund of commission. Welcome calls for enquiry.