Taiwan client case studies in 2021
An Indian pharmaceutical company sets up office in Taiwan
Specifically, our Client’s company is a Contract Research Organization (CRO) based in Mumbai, India. The company’s purpose is to assist pharmaceutical companies from across the globe with comprehensive drug development by providing high quality testing services.
In Taiwan, our Client wished to setup a subsidiary which would partner with local Firms conducting clinical trials in the country. Our Client’s Taiwanese subsidiary would provide the drugs to be used during the trails, supervise the trials and report the results to the pharmaceutical companies producing the drugs. So, keeping these objectives in mind, the company’s senior manager approached Healy Consultants.
Initially, our Client approached Healy Consultants via email. The subsequent conversations took place both over the phone and via email. Our Client explained their business activity in detail. Healy Consultants realized the company would need additional approvals and permits prior to providing CRO services in Taiwan. Healy Consultants discussed the project with our affiliate officer and assured the Client we could assist their Firm. Thereafter, we immediately forwarded them the engagement letter.
Healy Consultants and the Client agreed on the company name and corporate structure. In Taiwan, a company can only reserve Chinese names, so Healy Consultants chose a name closest in meaning to the agreed upon English name. Thereafter, Healy Consultants proceeded to reserve company name with the Ministry of Economic Affairs (MOEA). Next, we opened a capital account with a multinational bank in Taiwan, following which the Client deposited the share capital amount. After receiving the proof of deposit, Healy Consultants finally incorporated the company and emailed the certificate of incorporation to the Client.
Virtual office services
All Taiwanese companies are required to sign lease agreement for office premises prior to securing investment approval from the authorities. Healy Consultants assisted our Client with signing a tenancy agreement for shared physical office services in Taiwan.
Engagement strategy document
Prior to commencing the incorporation process, our Client requested Healy Consultants to prepare an engagement strategy document to address the procedure for successfully conducting clinical trials in Taiwan. So, concurrently with company setup, Healy Consultants prepared a detailed document within 1 month after discussing our Client’s engagement with 10 law firms, company secretarial firms and accounting firms.
After company registration, Healy Consultants proceeded to convert our Client’s capital account into a permanent business bank account. First, Healy Consultants skillfully negotiated a travel exemption for our Client, because of which our Clients were simply required to courier the signed documents to Taiwan. The entire process was completed within 2 weeks.
Electronics provider opens Taiwan office
Miss Katty is a Dubai resident. She approached Healy Consultants to help her to meet her business goal to incorporate a company in Taiwan. The company is called Neutral Private Limited, which engaged in the import and export of various goods throughout Taiwan, Korea and India. The company provides quality goods, software, hardware and machine part to its Clients in variety industries, such as materials industry, manufacturing industry and telecommunication industry, many of which are based in the Asian region. To better serve its Clients in Asia Pacific, Miss Katty chose to set up a company in Taiwan with the professional assistance of Healy Consultants.
Miss Katty contacted our Singapore office to discuss the optimum business strategy and begin the engagement. Healy Consultants then explained to Miss Katty the jurisdiction and tax requirements in Taiwan, also highlighting the competitive business advantages. Miss Katty decided to incorporate a company in Taiwan with two corporate bank accounts to support the business. However, during subsequent communications Miss Katty was able to identify the additional services she would require following company incorporation, and total engagement fees were agreed. With costs and scope of services agreed, Miss Katty signed Healy Consultants’ Client Engagement Letter, which outlined her preferred company structure, including shareholders and directors.
Healy Consultants began the incorporation process after the corporate structure is agreed by Miss Katty. Because a Chinese name is required for all Taiwan registered company, Healy Consultants translated the proposed company name into Chinese and obtained name reservation approval from the Taiwan Registry.
Thereafter, Healy Consultants proceeded with company incorporation and obtained the preliminary approval of Foreign Investment Application from the Taiwan Government within one week. Thereafter Healy Consultants arranged Miss Katty to travel to Taiwan to setup a temporary corporate bank account with a well known commercial bank in Taiwan for initial capital (US$20,000) injection. During Miss Katty’s travel to Taiwan, Healy Consultants arranged i) airport pickup ii) hotel accommodation to avoid any inconvenience to Miss Katty. After the initial capital was funded, the Taiwan Government issued the Certificate of Incorporation within three days confirming the business as a legal entity.
To proceed with the company tax registration, Miss Katty is required to travel to Taiwan for a tax interview. In the meantime Healy Consultants assists Miss Katty to open the second corporate bank account with Bank of Taiwan.
Miss Katty emphasized she needs two corporate bank account to support its operations in Taiwan. Prior to the engagement, Healy Consultants contacted one of the largest commercial banks in Taiwan and a government owned commercial bank in Taiwan to obtain preliminary approval for her company’s corporate bank account opening. To support the corporate bank account opening, Healy Consultants prepared a detailed business plan in Chinese. The business plan contained details such as the company’s activities (and its products and services), information on the shareholders and directors, a brief market analysis and some financial projections.
For both banks, Healy Consultants submitted the complete account application pack and accompanied Miss Katty to the bank personally for a bank interview. The banks approved the corporate bank account at the same day Miss Katty visit the bank and issued her with the internet banking details, ATM card and PIN numbers.
Other supporting services
Also, to support Miss Katty’s business in Taiwan, Healy Consultants assist Miss Katty to i) hire local staff in Taiwan, which includes arrange recruitment advertisement, interviews, shortlists etc for Miss Katty ii) introduce housing agent in Taiwan to assist Miss Katty to locate a physical office in Taiwan (if needed) iii) introduce Miss Katty supplier and export agent in Taiwan and iv) introduce Miss Katty to some of our existing Client in the same industry.
Thereafter, Last but not least, to enable Miss Katty legally work in Taiwan, Healy Consultants assists Miss Katty and her family to obtain residency and working visa in Taiwan.
The whole company incorporation and bank account opening process takes approximately six weeks to complete start from the beginning. Miss Katty’s timely response and co-operation is highly appreciated during the engagement.
Healy Consultants provides Miss Katty a complete company kit including i) Original certificate of registration ii) original certificate of tax registration iii) original Investment Commission Approval and bank kits (incl internet banking token and cheque book). For our continuous improvement, Healy Consultants also emailed Miss Katty an Engagement Feedback Survey for his completion.
Trading firm capturing global market by establishing its Asia Headquarter in Taiwan
- In March 2018, our Client contacted Healy Consultants Group PLC to project-manage their company’s expansion into the Taiwan market;
- The Client has been doing business in the Management and Finance industry for over 20 years. The business of our Client in Taiwan is import and export of agricultural commodities (transit trade);
- The Client was interested to set up their presence in Taiwan or a neighbouring country to benefit from competitive facilities and government incentives and for their products to be easily accessible to both customers and partners within the South East Asian region;
- Based on our Clients’ requirements, Healy Consultants Group PLC proposed incorporating a limited liability company in Taiwan with a local corporate bank account in Taiwan. This would be most beneficial, given the nature of our Clients’ business;
- As for the corporate structure, the Taiwan company would have our individual Clients as two international directors and the mother company as the sole corporate shareholder. As a Taiwan company requires a local registered address, the Client chose Healy Consultants Group PLC Taiwan’s office as the company’s registered office address;
- We provided our Client with a detailed proposal outlining i) costs breakdown ii) time frame and iii) accounting and tax liabilities. All fees were agreed upfront with our Client so there were no hidden charges once the project started;
- Our specialised consultant and project manager also convened a meeting in Healy Consultants Group PLC Singapore Head Quarters to discuss the options and assure the Client of our i) competency ii) professionalism and iii) experience registering businesses in Taiwan.
- The project started by collecting and reviewing our Clients’ due diligence documents. As the mother company is a publicly listed company, we had to modify our Due Diligence Checklist to accommodate our Client’s business and requirement for less documentation. While the modified checklist had less requirements, we were still covering all the Singapore government KYC requirements;
- Once we agreed on the due diligence requirements, Healy Consultants Group PLC Incorporation team started the incorporation process;
- Immediately after the meeting in Singapore, within a day, we performed a name search with the Ministry of Economic Affairs Taiwan (ROC);
- Upon confirmation of company name availability, Healy Consultants Group PLC prepared the full set of incorporation documents to be signed by our Clients and submitted to the Taiwan Companies Registry. Thereafter, we submitted the incorporation documents prepared previously to the ROC;
- Company incorporation was completed within 3 months from the start of this engagement. The project was as smooth as we planned, with no surprises;
- After conducting detailed research, we found out that our Client’s business did not require any specific business license for its trading activities, only the importer and exporter registration to be completed.
Corporate bank account
- Thanks to our Client’s existing relationship with an international bank in Taiwan, Healy Consultants Group PLC successfully assisted our Client to open a corporate bank account with the bank;
- Taiwan business registration procedure requires companies to open a capital account, inject the initial share capital and only after the company registration is successful, can the capital account be transformed into an operational business bank account.
- Therefore, within one month of company set up, Healy Consultants Group PLC received approval and account details from the bank. We immediately couriered the bank mails and internet tokens (in sealed envelopes) to our client’s preferred address at no additional charges.
Accounting and taxation
- Immediately after the company was incorporated, Healy Consultants Group PLC entered this company into our Taiwan accounting and taxation database to ensure the company’s legal obligations would be timely discharged in the future;
- Again, we gently reminded our Clients of their legal obligations as the directors of a Taiwan company for them to be aware while acting on their duties;
- Our client has a fully operational trading company in Taiwan with a corporate bank account in Taiwan’s leading banking institution and is able to trade in a fully compliant manner with Taiwanese regulations;
- Our Client engaged Healy Consultants Group PLC to prepare audited annual reports from next registration year onwards. These reports are to be submitted upon receipt of the management accounts, invoices and bank statements from our Client’s Taiwanese company.