What is the Taiwan preparatory bank account opening?
The company preparatory office is one of the necessary processes in the company incorporation process in Taiwan and is quite different with other countries.
The main purpose is for the confirmation of capital injection. When a company is under the incorporation process, the total capital must be firstly determined in the articles of association. Then, it should be fully paid to ensure that the company has stable financial ability so can cover the operation costs and protect the rights of company’s creditors.
To achieve the above-mentioned purpose, the company’s representative is required to open a preparatory bank account for capital injection during the new company set up process. The preparatory bank account should be transferred to an official company bank account after all the incorporation procedures are done.
What documents are required for the Taiwan preparatory bank account opening?
To open a company preparatory account at the bank, you’ll need to provide three essential documents:
- The representative’s passport and Taiwan ARC (or foreigner’s Taiwan ID).
- The original company name pre-examination letter and approval letter for company investment.
- Both the large and small seals are designated for preparatory bank account.
What should be considered when remitting the capital to the Taiwan preparatory bank account?
The crucial requirement is to ensure that the shareholder’s name corresponds with the remittance. In the case of a single shareholder of a limited company, ensure consistency with the provided documents. If there are multiple shareholders, please make separate remittances for each.
Key considerations when converting the preparatory bank account to an official account.
Taiwan preparatory bank account opening: switching to an official account.
It’s crucial to note that the conversion of the company preparatory account to an official account occurs after completing “tax registration with the National Taxation Bureau,” not immediately upon ” receiving an approval letter provided by the Ministry of Economic Affairs.”
As previously mentioned, the representative needs to present dual documents (passport + ARC or Taiwan ID) to open the preparatory bank account.
Similarly, legal entities such as companies also need dual documents. When a government officer requests your company’s registration document, they are referring to the approval letter for company registration. If a bank requires dual enterprise documents, it means they need both the company registration approval letter and the tax registration letter.
For a smooth transition from a preparatory account to an official one, it’s essential to follow these guidelines and adhere to Taiwan’s banking requirements.
When can you transition from a preparatory account to a formal one for your company in Taiwan?
Typically, this transformation can occur within 1 to 2 weeks after you receive the “approval letter from the tax office.” However, some banks may require confirmation that your company’s business status with the tax office is “in business” before allowing the change.
Here’s what to consider:
Business status: Ensure your company’s business status is updated to “in business” with the tax office before making the switch.
Urgency: If it’s urgent, you can inquire with the bank about accepting the official tax approval letter to expedite the process.
Foreign payments: For companies dealing with foreign payments, we can assist in obtaining an official English name within 1 to 2 days after company establishment. This allows you to provide the import and export registration form to the bank during the transition, facilitating foreign customer transactions.
What documentation should you bring when transferring to a formal account?
Different banks have varying policies, so it’s advisable to contact the bank first for confirmation. Generally, you will need:
- Representative’s ID card (passport)
- Original official registration approval letter and tax registration letter
- The company seals designated for bank use (which can be the same or different from the registration seals)
- Preparatory account bankbook and the original seals of the preparatory account
- Secondary documents, such as “Articles of Association” and “shareholder structure,” which will also be required by banks.
How we can assist with your Taiwan preparatory bank account opening
Are you looking to streamline the process of opening a preparatory bank account? We offer a range of advantages to make your experience smooth and efficient. Here’s how our services can streamline the process:
- Timesaving: We handle all bank communications, ensuring clarity and avoiding misunderstandings.
- Expertise: Benefit from our professional experience and advice.
- Document preparation: We take care of document collection and submission on your behalf.
Key Service Features:
- Selecting the bank: We help you choose the proper bank based on your specific needs.
- Verifying the requirements: We confirm the necessary conditions and document requirements with the bank.
- Preparing the documents: We collect and prepare all necessary documents.
- Arranging a bank meeting: We schedule and facilitate your meeting with the bank.
- On-site assistance: We accompany you to the bank for a smooth account opening process.
Contact us to learn more.
Frequently Asked Questions about Taiwan Preparatory Bank Account Opening
1. Is a physical visit to the bank necessary for opening a preparatory bank account?
Opening a bank account requires your physical presence, except in the case of remote account opening provided by few banks.
2. Can a company open multiple banks after its establishment, in addition to the main bank?
Certainly, the regulations do not explicitly limit a company to a single main correspondent bank. However, if the company anticipates future financing needs or if its leadership requires loans in the company's name, establishing a relationship with a major bank is advisable. This fosters trust and facilitates financial transactions.
3. Does it take a month to obtain a bank balance certificate?
Due to money laundering prevention laws, some banks face challenges issuing bank balance certificates. They may suggest depositing a small amount (e.g., NTD$1000) and photocopying the inner bankbook page on the third day. This can serve as evidence of the capital amount for the further verification by accountants.
