To promote domestic economic development and attract investment from overseas Chinese and foreign nationals, the government of the Republic of China instituted the "Statute for Investment by Foreign Nationals" in July 1954 and the "Statute for Investment by Overseas Chinese" in November 1955. The Ministry of Economic Affairs then established the Overseas Chinese and Foreign Investment Commission to take charge of matters relating to the screening and approval of investment and technical cooperation by foreigners and overseas Chinese, as well as outward investment from Taiwan.

On Apr. 1, 1968, the Executive Yuan promulgated the "Program for Strengthening Investment Screening Agencies." On June 1 that year the Investment Commission instituted a joint office operation with personnel from various related agencies being stationed within the Commission to handle matters relating to applications for investment by overseas Chinese and foreign nationals. The personnel stationed within the Commission were authorized by their agencies to approve applications that conformed to the rules and regulations of those respective agencies, thereby achieving the effect of simplifying administrative procedures and providing greater convenience for investors.

With the approval of the Executive Yuan, the Commission was renamed as the Investment Commission, Ministry of Economic Affairs--on Oct. 15, 1973. Along with the government's vigorous implementation of its policies of internationalization and liberalization in recent years, the original controls imposed on foreign investment have all been greatly relaxed; as a result, the Commission was again reorganized on Oct. 12, 1994 and the joint office operation was altered, with the personnel from the different stationing agencies being returned to their original posts. The Commission's original Secretariat, Service Division, Foreign Exchange Division, Export and Import Division, Tax Division, and Investment Operations Division were reorganized into four divisions and one office so as to better cope with the needs of the present stage of development.

On Sep. 26, 2023, the organization reform of the Ministry of Economic Affairs approved by the Executive Yuan was implemented. In order to address the increasing amount of foreign and Mainland China investment applications, and to enhance the intensity and decision-making level of investment review, the Investment Commission was incorporated into the Ministry of Economic Affairs, forming the “Department of Investment Review,” comprised of 4 operating sections: Investment Regulation and Policy Section, Inbound Investment Review Section, Outbound Investment Review Section, and Foreign Talent Affairs Section.