Best Business Lawyers in Taiwan

About Business Law in Taiwan, Taiwan

The legal system in Taiwan is a blend of civil law influenced by the German model and the traditional Chinese law. For businesses, Taiwan enforces several key legal doctrines that govern everything from incorporation and startups to mergers, acquisitions, and corporate restructuring. Intellectual property rights, labor laws, contracts, taxes, and corporate litigation are all critical areas of Taiwanese business law that protect businesses and facilitate their operations. Laws change and are updated frequently, and different industries have specific regulations.

Why You May Need a Lawyer

Understanding and complying with business law can be challenging. Legal advice is essential for a range of scenarios, such as examining contracts or other legal documents, dealing with disputes or litigation, starting a business, dealing with labor issues, handling mergers or acquisitions, or navigating complex tax issues. A specialized lawyer will have the experience and expertise to guide you through these processes and ensure your business remains in compliance with all relevant laws and regulations.

Local Laws Overview

Key aspects of business law in Taiwan include the Company Law, the Fair Trade Act, the Labor Standards Act, and the Commercial Registration Act among others. Taiwan’s Company Law governs the establishment, management, and dissolution of companies. The Fair Trade Act prevents monopolies, unfair competition, and regulates mergers and acquisitions. The Labor Standards Act regulates employment contracts, working hours, holidays and leave, wages, retirement and worker protection, while the Commercial Registration Act governs the initial registration, updates, and deregistration of businesses. Understanding these laws is fundamental to running a successful business in Taiwan.

Frequently Asked Questions

1. What types of business entities can I form in Taiwan?

Taiwan law recognizes five types of business entities: limited companies, unlimited companies, limited partnerships, unlimited partnerships, and branches of foreign companies.

2. How does one incorporate a business in Taiwan?

The process involves several steps including approval of the company name, capital verification, incorporation registration, tax registration, and labor insurance registration.

3. What is the minimum capital required to start a business?

The minimum capital requirement depends on the type of business. For most limited companies, the minimum capital is NT$500,000. However, they are exceptions for certain types of businesses.

4. Does Taiwan have laws protecting intellectual property?

Yes, Taiwan has robust intellectual property laws, including laws related to patents, trademarks, and copyrights.

5. Can foreign investors fully own a Taiwanese company?

Yes, Taiwan permits foreign direct investment and foreigners are able to fully own a company. However, some sectors have restrictions on foreign ownership.

6. Is a physical office necessary to incorporate a company in Taiwan?

Yes, you need to have a physical office address to incorporate a company in Taiwan.

7. Is it compulsory to hire local employees for a foreign-owned business in Taiwan?

The laws in Taiwan do not obligate foreign companies to hire local employees. However, doing so may be beneficial to navigate the local business culture and regulatory environment.

8. How are contracts enforced in Taiwan?

Contracts in Taiwan are enforced through the civil court system. Breach of contract can lead to damages or specific performance being awarded.

9. How does Taiwan handle business disputes?

Business disputes in Taiwan are typically resolved through litigation, arbitration, or mediation.

10. What kind of taxes do businesses need to pay in Taiwan?

Companies in Taiwan are subject to both corporate income tax and business tax. The exact amount varies depending on the business's annual income and other factors.

Additional Resources

The Taiwan Ministry of Economic Affairs, Taiwan Intellectual Property Office, and Taiwanese Bar Association all provide resources and information for businesses. Websites like Taiwan Trade and Tealit are also excellent sources of business-related advice and insights about doing business in Taiwan.

Next Steps

If you require legal assistance, consider hiring a legal professional who is knowledgeable about Taiwanese business law. This can come in the form of a lawyer, solicitor, or legal advisor. They can guide you through legal processes, assist with paperwork, interpret complex law jargon, and ensure you adhere to all relevant laws and regulations. Doing so could save you considerable time, effort, and later legal trouble.