Best Due Diligence Lawyers in Taiwan

About Due Diligence Law in Taiwan, Taiwan

Due diligence in Taiwan, Taiwan is a comprehensive process that is taken up before making decisions in business matters to ensure the legal and financial safety of transactions. This involves an exhaustive investigation into the operations, risk factors, and financial implications of the subject of interest. The legal proceedings of Due Diligence in Taiwan comply with international standards, making it comprehensible for foreign investors and businesses. This process is primarily handled by lawyers who are well versed in corporate law, contract law, tax law, and intellectual property rights. They conduct this meticulous procedure in order to inform the client about potential risks and benefits associated with the transaction.

Why You May Need a Lawyer

There are numerous circumstances where you might require a lawyer for due diligence in Taiwan. For instance, if you are planning to invest in a Taiwan business or buy a property, you may need a lawyer to conduct a comprehensive examination of the financial health and legal status of the business or property. Moreover, when considering a joint venture, merger or acquisition, an attorney can perform due diligence to identify potential risks and issues related to the transaction. Additionally, businesses contemplating bankruptcy or restructuring concurrently need to carry out a thorough due diligence process, which necessitates an experienced lawyer.

Local Laws Overview

Due diligence in Taiwan is regulated by several local laws and regulations, which differ based on the nature of the transaction. Core laws include the Company Act, the Business Mergers and Acquisitions Act, the Securities and Exchange Act, and the Fair Trade Act. The Company Act determines the legal structure and governance of companies, while the Business Mergers and Acquisitions Act mandates the process and approval of business mergers and acquisitions. Meanwhile, the Securities and Exchange Act governs public offerings and securities-related transactions, and the Fair Trade Act ensures healthy and fair competition in business. Complying with these laws can be complex, and hence, hiring a local lawyer well versed in these areas is important.

Frequently Asked Questions

1. What is the purpose of Due Diligence in Taiwan?

Due diligence serves the purpose of identifying potential risks in business transactions like mergers and acquisitions, investments, and joint ventures. Carrying out due diligence is essential for safeguarding against legal complications and potential financial losses.

2. Who conducts Due Diligence in Taiwan?

Typically, corporations or individuals about to enter into significant commercial transactions employ lawyers or legal firms to conduct due diligence in order to ensure their business transactions are legitimately safe and financially prudent.

3. How long does the process of Due Diligence take in Taiwan?

The duration of the due diligence process depends on the complexity of the transaction and the level of diligence required. It can take a few weeks to several months depending on the case.

4. How much does Due Diligence cost in Taiwan?

The cost of due diligence varies based on the complexity of the transaction, the type of business being reviewed, and the lawyer's rates. It's advisable to discuss fee arrangements with a potential lawyer before beginning the process.

5. What is the importance of conducting Due Diligence?

Conducting due diligence is crucial to identify and evaluate potential risks related to business transactions. A comprehensive due diligence process can protect businesses from legal pitfalls and serious financial damages.

6. Can I conduct Due Diligence by myself?

While it is technically possible, due to the complexity of Taiwan's legal and business landscape it is recommended to employ a competent lawyer or a legal firm with expertise in due diligence.

7. What happens if Due Diligence reveals problems?

If due diligence reveals problems, it gives the buyer the opportunity to negotiate for better terms, reconsider the deal, or request the seller to remedy the issues before proceeding. It equips the buyer with necessary information to make an informed decision.

8. Can Due Diligence stop a transaction?

Yes, if significant legal or financial issues are found during due diligence, the buyer or investor may opt to halt the transaction.

9. In what other cases is Due Diligence beneficial?

Apart from business transactions, due diligence is also beneficial when it comes to regulatory compliance, making investments, resolving disputes, purchasing real estate, and more.

10. What if a company refuses to cooperate in a Due Diligence process?

If a company refuses to cooperate in a due diligence process, this is typically seen as a red flag. It is advisable to proceed with caution and consult with a legal expert on the next steps.

Additional Resources

The Taiwan Ministry of Justice and the Taiwan Stock Exchange Corporation are two very helpful resources when it comes to information and regulations associated with due diligence in Taiwan. The Taiwan Bar Association and the Taipei Bar Association also offer services and information regarding lawyers practicing Due Diligence law.

Next Steps

If you require legal assistance in the field of Due Diligence in Taiwan, you should begin by identifying and contacting a local firm or lawyer with expertise in due diligence and relevant laws. Prior to setting a formal appointment, prepare a brief overview of your situation and compile any relevant documents. Communication is key, so make sure to clearly express your concerns and queries to your chosen legal representative. It might also be helpful to get a firm understanding of the expected timeline, costs and outcomes of the Due Diligence process.