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Investment Invitation FAQs

1 What is Tainan’s investment environment like?
  1. Complete supporting system: Southern Taiwan Science Park’s surrounding area has a complete supporting system from fields including private industries, government organizations, scholars and experts, and research institutions. Tainan City has rich human resources with a total of 14 universities/colleges, which provides great supporting energy in the development of industries.
  2. Clear settlement of industries: metal manufacturing industry, machinery industry, textiles industry, motor vehicle and parts industry, and food manufacturing industry.
  3. Well-developed industrial-use land (a total of 71 industrial areas have been developed).
  4. In line with international norms: Anping Port Free Trade Zone and Free Economic Pilot Zone hold processing industry advantages. The convenient and efficient transportation network increases the functions of international logistics, and improves the economical exchange between the southern part of Taiwan and Mainland China, providing core industries with key competitiveness.
  5. A single-window service has been established to help overcome all investment obstacles.
  6. Not only does Tainan’s economic growth have great potential, it will also be the core of economic growth in the southern part of Taiwan in the future. We sincerely welcome you to invest in Tainan.
2 What exclusive investment incentives does Tainan offer? Tainan’s exclusive investment incentives include:
  1. Tainan’s local SBIR
  2. Tourism factory counselling project
  3. Loan Project of Small and Medium Enterprises Credit Guarantee Fund in Tainan City
3 What tax incentives are offered for private participation in major infrastructure projects in Tainan City?
  1. No land tax: Once the use of land has been approved by the main organization, no land tax will be collected during the construction or operation period from private organizations that participate in major infrastructure projects as specified in Paragraph 2, Article 3 of Enforcement Rules of Act for Promotion of Private Participation in Infrastructure Projects. From the third to the fifth year, land tax will also be reduced to 50% of the full amount. If the land is transferred to a third party for constructing and operating purposes before the tax reduction period ends, the reduction is permitted to continue until the end of the duration.
  2. No building tax: Once the use of building has been approved to be legal by the main organization, no building tax will be collected from private organizations that participate in major infrastructure projects as specified in Paragraph 2, Article 3 of Enforcement Rules of Act for Promotion of Private Participation in Infrastructure Projects. From the third to the fifth year, building tax will also be reduced to 50% of the full amount. If the building is transferred to a third party for operating purposes before the tax reduction period ends, the reduction is permitted to continue until the end of the duration.
  3. No contract tax: Once the proprietary right has been obtained or the right of dien has been set up for the direct use of the real estate, no contract tax will be collected during the construction or operation period from private organizations that participate in major infrastructure projects as specified in Paragraph 2, Article 3 of Enforcement Rules of Act for Promotion of Private Participation in Infrastructure Projects. If the real estate is used for other purposes or further transferred to others without direct usage within 5 years from the day of contract tax declaration, the original waive of contract tax has to be repaid in full. Same conditions apply to private organizations that have obtained the proprietary right of the real estate to take over or for further construction and operating purposes as specified in Paragraph 3, Article 52 of Enforcement Rules of Act for Promotion of Private Participation in Infrastructure Projects.
Source of Information:Tainan Municipal Self-Government Ordinance on Exemption and Reduction of Land Value Tax, House Tax and Deed Tax for Promotion of Private Participation in Infrastructure Projects
4 What are the procedures of company establishment for local investors?
  1. Apply for search and reservation of company name and business scope. Please provide 1 to 5 company names in Chinese in their order of priority and proposed business scope, the company names will be surveyed by the Ministry of Economic Affairs, R.O.C. in the order of priority and only one name will be reserved if it is available (details may be checked on Ministry of Economic Affairs, R.O.C. website).
  2. Apply for company registration. A pre-approval is required before applying for company registration if the company intends to conduct special business which is subject to additional requirements and regulations ruled by the Ministry of Economic Affairs, R.O.C. (please register on Ministry of Economic Affairs, R.O.C.’s “Company Business Category Codes Search” system)
  3. Apply for business registration.
  4. Apply for factory registration – depending on the choice of factory location (this is not applicable to a non-manufacturing business).
  5. Apply for registration of importer/exporter – for trading business only (please click here, Bureau of Foreign Trade, Ministry of Economic Affairs, R.O.C. for online application)
Source of Information:Invest Taiwan
5 What are the procedures of company establishment for overseas Chinese and foreign investors?

If planned investment or business are limited to “Negative List for Investment by Overseas Chinese and Foreign Nationals – Prohibited and Restricted Investment, Business Items for Overseas Chinese and Foreign Nationals

  1. Apply for search and reservation of company name and business scope. Please provide 1 to 5 company names in Chinese in their order of priority and proposed business scope, the company names will be surveyed by the Ministry of Economic Affairs, R.O.C. in the order of priority and only one name will be reserved if it is available (details may be checked on Ministry of Economic Affairs, R.O.C. website).
  2. Application procedures for overseas Chinese (please refer to Overseas Community Affairs Council, R.O.C. for Identification Certificate of Overseas Chinese) and foreign investment approval.
    ※Investment in nonrestrictive industries and the investment amount or capital increase is not more than NT$500 million: 2~4 days※Investment in nonrestrictive industries and the investment amount (or capital increase) is not more than NT$1,500 million: 3~5 days
    ※Investment in restrictive industries and the investment amount (or capital increase) is more than NT$1,500 million or mergers, acquisitions and spin-offs: 10~20 days
    ※Investment in mergers and acquisition or extraordinary case: 20~30 days
  3. Apply for approval for examination of investment capital.
  4. Apply for company registration. A pre-approval is required before applying for company registration if the company intends to conduct special business which is subject to additional requirements and regulations ruled by the Ministry of Economic Affairs, R.O.C. (please register on Ministry of Economic Affairs, R.O.C.’s “Company Business Category Codes Search” system)
  5. Apply for business registration.
  6. Apply for factory registration – depending on the choice of factory location (this is not applicable to a non-manufacturing business).
  7. Apply for registration of importer/exporter – for trading business only (please click here, Bureau of Foreign Trade, Ministry of Economic Affairs, R.O.C. for online application)

Source of Information:Invest Taiwan

6 What are the types of companies established by foreign companies in Taiwan? What are the differences between the types?

The types of companies established by foreign companies can be categorized as follows:

  1. Subsidiary: A company with profit-seeking purpose, and is registered by Taiwan’s legal organizations. Apply for search and reservation of company name from the Department of Commerce, Ministry of Economic Affairs, R.O.C., and apply for investment permit from the Investment Commission, Ministry of Economic Affairs, R.O.C., then apply for company registration with the organization that the main company is registered under the jurisdiction of.
  2. Branch Office: A company with profit-seeking purpose, and is registered by foreign legal organizations. First, apply for authenticated approval of foreign company and branch office registration from the Department of Commerce, Ministry of Economic Affairs, R.O.C. (if the company is located in an export processing zone or a science park, please apply for company registration with The Export Processing Zone Administration, Ministry of Economic Affairs, R.O.C. and Southern Taiwan Science Park Bureau, Ministry of Science and Technology too). Business registration (including factory registration and importer registration) should also be applied for from the Department of Commerce, Ministry of Economic Affairs, R.O.C.
  3. Representative Office: This is when a foreign company has no intention in establishing a subsidiary or branch office in Taiwan, and only appoints a representative for legal business actions. Apply for the act of appointing a representative as specified in Paragraph 1, Article 386 of Company Act from the Department of Commerce, Ministry of Economic Affairs, R.O.C. If the representative is required to stay for a long period of time, a representative office should be established as specified in Paragraph 2, Article 386 of Company Act.

Source of Information:Invest Taiwan

 

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