Foreign Investments




With over $1.3 trillion USD in GDP, the Taiwanese market gives your business access to the world’s 20th largest economy and 23 million Chinese-speaking individuals. Those who have minimal access to the Asia market may enjoy the benefits of starting their expansions in Taiwan, giving them direct access to hi-tech/manufacturing industries, a transparent legal system, and direct access to other Asian countries through Taiwan’s export-oriented capitalist economy. In recent years, Microsoft, Google and IBM have been actively investing in Taiwan.

Kingdom’s Law Firm has experience helping public and private companies successfully invest and expand in Taiwan. Our firm has extensive experience assisting multi-billion dollar conglomerates in complex transactions such as special licensing requirements and joint ventures. We specialize in foreign investments and counsel clients on legal and regulatory concerns associated with business investments. We understand complex cross-border issues associated with investments and our legal team works with tax professionals to assist you with:
Foreign investments in Taiwan are subject to the control of the Negative List. To conduct certain kinds of business activities in Taiwan, foreign investors must seek and obtain special licenses from government agencies. We have successful experiences obtaining these licenses and are ready to assist our clients with related planning, negotiations and documentation preparation.
We have substantial experience working with various Taiwanese companies with significant manufacturing capabilities and are able to construct investment strategy that best fits each market sector and at the same time is tailored to client’s needs. We assist foreign investors in identifying investment opportunities and anticipating challenges in various Taiwanese industries. We also have intensive expertise in working with intellectual property and integrating it into various business sectors.
Foreign investors, depending on their respective business goals in Taiwan, sometimes would consider working with their Taiwanese partners through a newly formed joint venture entity in Taiwan. The typical cooperative pattern would require the foreign partner to provide intellectual property rights e.g., trademarks, patents, know-hows, in exchange for local sales channels which the local partner should provide.

However, if a foreign partner, for one reason or another, eventually decides to buy out its local partner from (or sell its interests in) the joint venture company, many M&A issues under, due diligence reports, joint venture agreement, license agreement, etc., may arise to create disputes between the parties if they have not been fully addressed when the joint venture company was first established. We can help resolve these critical issues early on to prevent subsequent complications which foreign investors should always avoid.
We offer comprehensive, effective and flexible solutions to foreign investors that go through corporate restructuring overseas. We assist in understanding clients’ corporate restructuring options and minimizing risks of potential harm. Depending on clients’ strategic goals we navigate them in adapting to fast-changing business circumstances offering advice in tax, corporate and dispute matters. We offer comprehensive services which are based on clients’ commercial needs.
Joint venture may be a preferred business model for foreign investors who intend to cooperate with the local partners in opening up Taiwan as their final or intermediary (to China or Southeast Asia) markets.

In this situation, the first issue to tackle is the shareholding percentages to be held by each joint venture partner; and the second issue will then be the number of board membership seats to be taken by each of them. There are also important issues such as how they will split the profits (if they are making money) and how one party can buy out the other quitting party (if they are losing money). As such, parties’ joint venture agreement and the newly formed joint venture company’s articles of incorporations are the two critical documents to be well thought of ahead for foreign investors’ protection, and on these issues we have extensive experience to contribute to our foreign clients.
When foreign investors, to facilitate their business goals, plan on acquiring an existing company in Taiwan, it will need to buy company stock from an existing shareholder of the target company, which basically constitutes a merger of the existing Taiwanese company by foreign investors. Depending on the buyer’s financial arrangements, it could be a one-shot deal or a series of transactions to be consummated by cash or share swaps.

For this purpose, legal due diligence is a must-do to consist of lawyers’ in-depth examination of issued related to the target company’s regulatory compliance, employment, IP, contracts, etc. In addition, foreign investors’ participation in an existing Taiwanese company will turn it into an Foreign Investment Approval company entitled to the protection of the laws in Taiwan, for which we can help foreign clients achieve to protect their investments in Taiwan.
To develop your business globally you will need to increase its presence in a foreign region or country. Taiwan would be a perfect place to do that. We assist clients in successfully managing legal, commercial and cultural matters arising in the process of executing all types of cross-border acquisitions. Performing various kinds of public and private transactions, we offer professional legal and business-focused advice, as well as identify related risks.
Technology transfer will create a cooperative framework between foreign investors and their local partners whereby the foreign investors, as the licensors, allow their technologies to be used by local partners, as licensees, for manufacturing purposes.

In return, licensors receive royalty fees from a such a transaction. Patent license represents typical technology transfer, but it could also include a license of trade secrets, know-how, copyright, trademark, etc. to be used by the licensee. Sometimes technology transfer also includes technical assistance from the licensors, for which the licensee, in addition to the royalty fees to pay, should also pay fees for such technical services.

The key document to use is the license agreement which usually includes several key articles, such as duty of confidentiality, covenant not to compete or challenge, licensor’s audit right, etc., to negotiate between the parties before they can finalize and sign off the agreement.
TypeNational TaxesMunicipal, County or City Taxes
Direct Taxes
  • Individual Income Tax
  • Profit-Seeking Enterprise Income Tax
  • Securities Transaction Tax
  • Futures Transaction Tax
  • Estate Tax
  • Gift Tax
Indirect Taxes
  • Value-Added and Non-Value Added Business Tax
  • Tobacco and Alcohol Tax
  • Commodity Tax
  • Custom Duties
  • Specifically Selected Goods and Services Tax
  • Stamp Tax
  • Vehicle License Tax
  • Amusement Tax
  • Special and Provisional Tax
We speak your language. We understand you when you use terminologies such as crypto, block chain, neural networks, FinFETs, gettering or voltage regulators. We have coders and inventors with hands-on experience. Our native Chinese, English and Russians speakers have graduated from the world's leading universities. We collectively translate to ensure the quality of our document translation. We'll be happy to assist you in professional document translations.
We assist high net worth individuals with inheritance planning and asset protection.

Why choose Kingdom’s Law Firm for investments?

  • We have over 30 years of work experience assisting public and private companies in Taiwan and abroad with complicated legal issues.
  • We specialize in complex cross-border transactions.
  • We are familiar with local laws and regulations.
  • We have successfully assisted startups grow into publicly listed companies and can anticipate legal exposures as you grow your business.
  • Our team is composed of native English, Russian and Chinese speakers.
  • We leverage modern technology to expedite applications and paperwork.
  • We work with tax professionals to help you with tax planning.
  • We assist in solving all relevant legal issues, such as contract drafting, review, negotiations etc., arising while establishing a business, in the process of running it in Taiwan or expanding to other countries.
  • We provide time-saving and issue-spotting assistance when it is required to obtain a special government approval to invest in restricted areas.