Key Takeaways
- Most overseas Chinese and foreign investors must obtain approval from the Department of Investment Review under Taiwan’s Ministry of Economic Affairs before investing capital in a Taiwan company.
- Taiwan operates a negative-list system and reports that nearly 95% of foreign investment has been deregulated.
- Applications are no longer limited to hard-copy submission. Current guidance permits online procedures and digital copies, although originals may be requested.
- A standard new-company investment generally proceeds from name reservation and investment approval to capital remittance, investment-amount verification and company registration.
- Mainland Chinese ownership or control, Hong Kong or Macau investor status and the choice between a subsidiary and branch can materially change the applicable procedure.
Taiwan is an established destination for international investment, particularly in technology, manufacturing, financial services and professional services. However, an investor should identify the correct regulatory route before remitting capital or registering an entity. The applicable process depends on the investor’s nationality and ownership structure, the proposed business activities, the form of establishment and whether another sector regulator must also give apWhat Is Foreign Investment Approval in Taiwan?
Foreign investment approval in Taiwan is the Ministry of Economic Affairs review that generally applies before an overseas Chinese or foreign investor acquires or subscribes for equity in a Taiwan company or undertakes another regulated form of investment. For standard company investments, the Department of Investment Review, or DIR, reviews the application before capital remittance and investment-amount verification.
The governing legislation defines foreign investment to include holding shares or capital contributions in a Taiwan company, establishing certain business structures and providing a loan of at least one year to an invested enterprise. Restricted-sector investments may also require permission or consent from the authority responsible for that industry.
The authority formerly referred to in some materials as the Investment Commission is now the Department of Investment Review, Ministry of Economic Affairs. Applications should therefore use the current authority name and current forms.
Who Needs Foreign Investment Approval?
Prior DIR approval commonly applies when an overseas Chinese or foreign investor intends to:
- Establish and subscribe for capital in a new Taiwan subsidiary.
- Acquire shares or capital contributions in an existing Taiwan company.
- Increase, transfer, reduce or withdraw an approved investment where a further application is required.
- Provide a qualifying loan of one year or more to an invested enterprise.
- Undertake another investment transaction falling within the applicable foreign-investment statutes and regulations.
The correct route should be confirmed before filing. A subsidiary, an ordinary foreign-company branch, a representative office and a PRC-connected investment do not necessarily follow the same approval and registration sequence.
Which Regulatory Route Applies?
| Investor or proposed structure | Primary regulatory route | Important consideration |
| Overseas Chinese or non-PRC foreign investor establishing a Taiwan subsidiary | Apply to the DIR for foreign investment approval before inward remittance and company registration | The company name and business scope should generally be reserved first |
| Hong Kong or Macau individual investor | Foreign-investment application with the prescribed permanent-resident status documents and declarations | The authority may request additional documents concerning Mainland China nationality, residence or connections |
| Mainland Chinese investor or qualifying third-area entity | Separate Mainland Chinese investment-permit regime | A third-area company is treated as Mainland-funded where Mainland persons or entities directly or indirectly hold more than 30% or exercise control |
| Ordinary foreign company establishing a Taiwan branch | Foreign-company recognition and branch-establishment registration through the company-registration authority | Do not automatically apply the subsidiary FIA and investment-verification process unchanged |
| Foreign company with more than 30% direct or indirect Mainland Chinese ownership, or Mainland Chinese control, establishing a branch | Prior DIR investment permission before branch registration | The substantive ownership and control test applies even where the parent is incorporated outside Mainland China |
| Representative office | Report or register the representative office under the applicable Company Act procedure | A representative office is not intended to conduct ordinary profit-seeking business in Taiwan |
Foreign Investment Application Process and Review
For a standard foreign-invested Taiwan subsidiary, the process generally follows these steps:
- Reserve the company name and business scope.
The proposed Chinese company name and registered business activities should be submitted for preliminary review. - Obtain any required preliminary sector approval.
Businesses operating in regulated sectors may need permission from the relevant sector authority. - Apply for foreign investment approval.
Submit the applicable investment form and supporting documents to the DIR. - Open the preparatory bank account.
After approval, establish an account in the name of the company’s preparatory office to receive the approved capital. - Remit the approved capital.
The remittance details, remitter and investment amount should correspond with the approved investment structure. - Apply for investment-amount verification.
Submit the remittance advice, foreign-exchange documentation, bank records and other applicable evidence to the DIR. - Complete company registration and tax registration.
After the investment amount has been verified, file the company-registration application with the competent registration authority and complete the relevant tax procedures.
Capital should not ordinarily be remitted as approved investment capital before the required investment approval has been obtained. Remitting funds too early, using an account belonging to a different person or changing the investment structure without approval may create verification difficulties.
Documents Commonly Required for a New Company Investment
The precise documents depend on the investor, transaction and proposed activities. For an initial investment in a new enterprise, the current DIR checklist generally identifies the following:
- The applicable investment application form, commonly Form A.
- Investor identification documents and Chinese translations.
- The power of attorney and its Chinese translation where an agent is required.
- Identification and certification documents for the appointed agent.
- Evidence of the approved reservation of the company name and business scope.
- The Declaration of Foreign Investor Qualification where applicable to the foreign juridical-person investor.
- Documents supporting the particular investment method or other case-specific matters requested during review.
Investment Application Form
The form records information about the investor, proposed Taiwan enterprise, investment amount, ownership structure, method of investment and other details required for the particular application. The information must be consistent with the company-registration documents, remittance instructions and supporting evidence.
The current standard checklist does not prescribe a universal three-year business expansion plan, employee plan and financial forecast for every new-company filing. Detailed operating, financing or investment plans may nevertheless be required for critical or substantial proposals, long-term loan investments, regulated activities or other case-specific reviews.
Proof of Identity for Foreign Investors
An individual investor may generally submit a valid passport copy or other accepted nationality documentation. A foreign corporate investor should provide its corporate identification or registration evidence and the required Chinese translation. Information concerning key controllers or ultimate beneficial owners may also be required, particularly when the ownership chain is complex.
Taiwan Company Name and Business Scope Reservation
The investor should reserve the proposed Chinese company name and business scope before submitting the standard new-company investment application. The reservation information and reference number should correspond with the activities stated in the investment filing.
Power of Attorney for Investment Agent
A power of attorney is required where the investor appoints an agent and falls within the relevant document category. It should clearly identify the investor and agent and specify the authorised matters. It is not limited to particular company types, and the current rules do not support a blanket statement that every power of attorney must be legalised only by a Taiwan overseas mission. The applicable standard verification procedure should be followed.
A natural-person investor holding a Taiwan Alien Resident Certificate, or a foreign juridical person with a registered Taiwan branch, may submit certain applications without an appointed agent and therefore without a power of attorney, subject to the supporting-document requirements.
Language and Submission Format
Foreign-language identification, authorisation and supporting documents generally require Chinese translations as specified in the checklist. This does not mean every original document must first be issued in Chinese.
Applications are not restricted to postal filing. Current DIR guidance accommodates online procedures and digital copies. Original documents are no longer routinely required for online applications, although the reviewing authority may request them when necessary. Paper applications remain available for relevant cases.
How Long Does Foreign Investment Approval Take?
A fixed two-to-four-week period should not be presented as guaranteed. Article 8 of the Statute for Investment by Foreign Nationals states that the authority should decide an application within one month after the application procedures are complete. Where the case involves the authority of another industry regulator, the stated period is two months.
These periods begin after the required procedures and documents are complete. The practical timeline can be longer where the authority requests supplementary information, the ownership chain requires clarification, the investment falls within a restricted or sensitive sector, or another regulator must participate. Investors should therefore build time for questions and document supplementation into the incorporation schedule.
Restricted Industries and Sector-Specific Approval
Taiwan applies a negative-list approach to most non-PRC foreign investment. InvestTaiwan reports that nearly 95% of foreign investment has been deregulated, with conditional restrictions remaining in limited areas.
Investment may be prohibited where it would adversely affect national security, public order, public morals or public health, or where legislation otherwise prohibits the activity. Investments in legally restricted sectors require permission or consent from the competent industry authority. Depending on the business, the investor may also encounter foreign-equity limits, licensing conditions or operational requirements.
The negative list and sector regulations should be checked against the company’s proposed registered activities rather than only its general commercial description. Financial services, telecommunications, broadcasting, transportation and other regulated fields may involve additional authorities and longer preparation periods.
Foreign Investment Activity in Taiwan
According to the DIR’s statistics for January to June 2026, Taiwan approved 1,163 overseas Chinese and foreign investment cases, with an approved investment and capital-increase amount of approximately US$8.901 billion, an increase of 20.84% from the corresponding period of 2025. The figures are equity-investment statistics and include initial investments and capital increases.
| Five leading sectors by approved amount, January–June 2026 | Approved amount | Share of total |
| Electronic components manufacturing | US$4.524 billion | 50.83% |
| Finance and insurance | US$2.062 billion | 23.16% |
| Wholesale and retail | US$636.952 million | 7.16% |
| Professional, scientific and technical services | US$550.847 million | 6.19% |
| Information and communications | US$380.718 million | 4.28% |
STATISTIC-SOURCE: https://www.moea.gov.tw/Mns/dir/news/wHandNews_File.ashx?all=1&file_id=126342
Source of Funds, Ownership and Control
The reviewing authority may examine the source and route of investment funds, the ownership chain and the identity of key controllers or ultimate beneficial owners. A transparent structure supported by consistent corporate records, ownership charts and remittance documents can reduce avoidable questions. The current guidance should not, however, be interpreted as requiring identical source-of-funds evidence in every case.
For an investment made in New Taiwan dollars, the current DIR guidance states that proof of the domestic NTD source is generally no longer required unless it is requested during the review. Investors should nevertheless retain supporting records and ensure that the funding arrangement matches the approved application.
Critical or Substantial Investments
Critical or substantial proposals may require additional materials explaining the operating plan, ownership structure, source of capital, financial capacity and other matters relevant to the review. The authority may also coordinate with an industry regulator where the proposed activities require special permission.
Mainland China, Hong Kong and Macau Connections
Mainland Chinese investors are governed by a separate investment-permit framework. A company incorporated in a third jurisdiction can still be classified as Mainland-funded where Mainland Chinese persons or entities directly or indirectly hold more than 30% of its shares or capital, or exercise control over it. Routing an investment through another jurisdiction does not remove this substantive ownership-and-control test.
Hong Kong and Macau investors are not automatically treated in exactly the same manner as Mainland Chinese investors. Their applications involve specific permanent-resident identification documents and declarations, and the authority may request further information where Mainland Chinese nationality, household registration, ownership or control is relevant. The official guidance does not support fixed claims that every Hong Kong or Macau case takes at least three months or that every Mainland Chinese case must take more than one year.
Practical Pre-Filing Checks
Before submitting an application:
- Map the complete ownership chain. Identify direct and indirect shareholders, controllers and any Mainland Chinese links before choosing the filing route.
- Confirm the establishment type. Decide whether the operation should be a subsidiary, branch or representative office and verify the approval sequence for that structure.
- Check the business scope. Compare every proposed registered activity with the foreign-investment negative list and sector-licensing rules.
- Align the documents. Investor names, registration numbers, ownership percentages, investment amounts and authorised signatories should be consistent across the application, corporate records and translations.
- Plan the remittance. The approved investor should remit the capital through the appropriate account and retain the bank and foreign-exchange documentation required for investment-amount verification.
- Allow time for supplementation. Complex ownership, sensitive activities or sector referrals can lead to further questions, even where the initial application is complete.
Completing these checks before remittance can help prevent the need to restructure the application or explain inconsistencies later.
How Can PREMIA TNC Help You?
PREMIA TNC‘s professionals will provide you with free consultation services and offer customized professional advice based on your company’s situation. If you engage with us for the company incorporation service, we will prepare the necessary documents for submission in the timely manner. During the review process, our professionals will answer all inquiries raised by the Ministry of Economic Affairs on your behalf. We will also keep track of the progress of your case to ensure there will be no delays.
Frequently Asked Questions
Q1: Must every document be originally written in Chinese?
A: No. The application forms and prescribed declarations should follow the required format, and foreign-language supporting documents generally need Chinese translations where specified. Current DIR guidance expressly requests Chinese translations for documents such as investor identification and powers of attorney, but the underlying foreign document does not always need to have been originally issued in Chinese.
Q2: Can an investor pay for expedited approval?
A: The cited official investment procedures do not identify a paid fast-track channel for an ordinary foreign investment application. The most practical way to avoid preventable delay is to submit complete and internally consistent documents and respond promptly to requests for supplementary information. The statutory review periods apply after the application procedures are complete.
Q3: Can investment capital be provided in New Taiwan dollars?
A: Yes, an approved investment may involve New Taiwan dollars where the proposed funding method is permitted and properly stated in the application. Under the current DIR document guidance, investors are generally no longer required to provide proof of the domestic NTD source unless the reviewing authority requests it. The investor should still retain evidence supporting the source, ownership and movement of the funds.
Q4: Does a foreign company establishing a Taiwan branch follow the same process as a subsidiary?
A: Not necessarily. Current InvestTaiwan guidance directs an ordinary foreign company to apply for foreign-company recognition and branch establishment through the company-registration authority. It should not be assumed that the subsidiary FIA and investment-amount verification sequence applies unchanged. Where Mainland Chinese persons or entities directly or indirectly hold more than 30% of the foreign company or exercise control, prior DIR investment permission is required before branch registration.
Q5: Can capital be remitted before the foreign investment application is approved?
A: For a standard foreign-invested subsidiary, the official process places DIR approval before opening the preparatory account, remitting the approved investment capital and applying for investment-amount verification. Investors should therefore obtain the required approval and confirm the banking instructions before treating a remittance as registered investment capital.
