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Types of company in Taiwan

Author: James Chang 2165 views

The two most common types of (subsidiary) company in Taiwan are “Limited Company” and “Company Limited by Shares.” Generally speaking, the structure of a “Limited Company” is simpler and most popular among SMEs. With the growth of operation, a Limited Company can be upgraded to a Company Limited by Shares. 

A limited company​

With the following strength, this type of company has became most popular among SMEs in Taiwan. In fact, as of March 2021, 76% of all companies in Taiwan are Limited Companies.
  1. It takes only one shareholder to set up the company.
  2. The supervisor is not required.
  3. Any transfer of ownership must be agreed by the other shareholders, and it makes a stabler shareholder structure.

A company Limited by Shares

The structure of a Company Limited by Shares is more complicated and emphasizes more on corporate governance. On the other hand, the shares can be transferred freely:
  1. It takes at least two individual shareholders or one corporate shareholder to set up the company.
  2. A supervisor is required unless there is only one corporate shareholder.
  3. The shares can be transferred freely and shall not be prohibited or restricted by any provision in the Articles of Incorporation
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