Types of company in Taiwan
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.
- It takes only one shareholder to set up the company.
- The supervisor is not required.
- 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:
- It takes at least two individual shareholders or one corporate shareholder to set up the company.
- A supervisor is required unless there is only one corporate shareholder.
- The shares can be transferred freely and shall not be prohibited or restricted by any provision in the Articles of Incorporation