Best Corporate & Commercial Lawyers in Taipei

About Corporate & Commercial Law in Taipei, Taiwan

Corporate and commercial law in Taipei, Taiwan, encompasses the legal framework that governs how businesses are formed, operate, and interact with each other and the public. This area of law covers a wide range of issues, from company formation and corporate governance to mergers and acquisitions, contract law, joint ventures, intellectual property, and regulatory compliance. Taipei, being the business and financial hub of Taiwan, is home to many domestic and international enterprises that require compliance with complex sets of local laws and international regulations. Legal advice in this field helps companies to mitigate risks, ensure smooth operations, and achieve business goals while staying within the limits of the law.

Why You May Need a Lawyer

There are various scenarios in which individuals or businesses may require legal assistance in the corporate and commercial sector in Taipei:

• Setting up a new company or business entity, including registration and licensing
• Negotiating, drafting, or reviewing business contracts such as supply agreements and partnership deals
• Navigating mergers, acquisitions, or restructuring processes
• Resolving shareholder disputes or issues with corporate governance
• Addressing compliance with local business regulations and foreign investment rules
• Protecting intellectual property rights, such as trademarks and patents
• Managing employment matters and labor regulations related to corporate operations
• Handling insolvency or bankruptcy procedures
• Advising on foreign direct investment and cross-border transactions

Local Laws Overview

Corporate and commercial laws in Taipei are largely driven by legislation set at the national level, primarily under the Company Act, the Business Registration Act, the Fair Trade Act, and related administrative regulations. Some important aspects include:

• The Company Act stipulates the requirements for forming limited companies, shareholders’ rights and obligations, board structure, and capital requirements
• The Fair Trade Act regulates business competition and prevents anti-competitive practices
• Foreign businesses must comply with the Act for Investment by Foreign Nationals, which outlines restrictions and approvals for foreign ownership and investment
• Commercial contract law in Taiwan is based on the Civil Code, which governs agreements entered into between parties
• Intellectual property is protected via the Trademark Act, Patent Act, and Copyright Act
• Employment laws affect hiring, termination, employee benefits, and workplace regulations
• Regulatory compliance is overseen by agencies such as the Ministry of Economic Affairs and the Financial Supervisory Commission

Navigating these laws requires careful attention to local statutes and the latest regulatory requirements. Non-compliance can result in significant legal liabilities and financial penalties.

Frequently Asked Questions

What types of business entities can I set up in Taipei?

You can establish limited companies, unlimited companies, partnerships, branch offices of foreign companies, and representative offices. Most foreign and local businesses choose to operate as a company limited by shares, due to limited liability and flexibility.

Do I need a local shareholder or director to start a company in Taipei?

A company in Taiwan must have at least one shareholder and one director. Local residency is not required, though some specific sectors might have additional restrictions.

How long does it take to register a company?

Company registration typically takes between two to four weeks, provided that all documentation is correctly prepared and submitted.

What are the ongoing compliance requirements?

Companies must file annual reports, conduct mandatory audits (for larger companies), hold annual shareholder meetings, pay taxes, and comply with employment and labor laws.

Are foreign investors allowed to own 100 percent of a company?

Generally, yes. Most sectors allow 100 percent foreign ownership, but some industries - such as telecommunications or defense - have restrictions that require local participation or Ministry of Economic Affairs’ approval.

What protection is available for intellectual property?

Taiwan offers strong protection for trademarks, patents, and copyrights. Registering your intellectual property locally is strongly advised for legal protection and enforcement.

How are business disputes typically resolved?

Commercial disputes can be resolved through negotiation, mediation, arbitration, or litigation. Arbitration is common for cross-border disputes, often conducted under Taiwanese or international rules.

What labor laws must businesses comply with?

Employers must follow the Labor Standards Act, which covers minimum wage, working hours, overtime pay, social insurance, and termination procedures. Compliance is strictly enforced in Taipei.

What taxes apply to businesses in Taipei?

Main taxes include corporate income tax (typically 20 percent), value-added tax (VAT), and withholding taxes on certain payments. Foreign companies may be subject to additional tax rules.

Can I buy or sell a company in Taipei?

Mergers, acquisitions, and sales of companies are allowed and are common commercial transactions, subject to regulatory approvals, fair competition rules, and due diligence requirements.

Additional Resources

Below are some key resources and governmental bodies that can be beneficial for those seeking guidance on corporate and commercial matters in Taipei:

• Ministry of Economic Affairs - Handles company registration, foreign investment approval, and industrial policy
• Department of Commerce - Responsible for company registration and business licenses
• Invest Taiwan - Provides guidance for foreign investors and helps navigate approval processes
• Financial Supervisory Commission - Regulates financial institutions and corporate governance
• Taipei Bar Association - Can help refer you to corporate legal specialists
• Intellectual Property Office - Manages IP registration and protection
• Taiwan External Trade Development Council - Assists with cross-border trade and investment
• Taipei City Government Economic Development Department - Offers business support services

Next Steps

If you need legal advice or representation in corporate and commercial matters in Taipei, it is wise to take the following steps:

• Clearly define your business goals and the specific legal issue you face
• Gather relevant documents, such as articles of incorporation, contracts, or government correspondence
• Contact a reputable lawyer or law firm specializing in corporate and commercial law in Taipei
• Ask about their experience with similar cases, fee structures, and consultations
• Check for possible language barriers or the need for bilingual legal services if you do not speak Mandarin
• Make use of business support resources, like government agencies and trade associations, where appropriate

Professional legal advice can help you prevent costly errors, stay compliant with laws and regulations, and achieve the best outcomes for your business in Taipei, Taiwan.