Foreign investors applying to invest in Taiwan’s critical industries shall submit common and essential documents (such as investor identifications, Power of Attorney certificates, identification of the appointed agent, information of the invested enterprise, investment kinds), case-specific documents (such as documents required for initial investments, capital increase, or transfer of equity interests), as well as the following:
I. Critical industries shall be as follows:
i. Taiwan’s top 100 listed or over-the-counter (OTC) companies by market capitalization, or public companies with equivalent scale,
ii. Enterprises operating restricted industries designated by the Statute for Investment by Foreign Nationals, or enterprises operating special permission industries, including cable radio and television, satellite broadcasting, financial and insurance industries, and public utility industries,
iii. Enterprises operating industries recognized as critical and substantial by the Competent Authority
II. The foreign investor shall provide detailed descriptions and relevant documents according to each of the following items:
i. Transparency of the investment plan:
(a) The transparency of the investment plan shall include comprehensive and detailed operational plan, investor’s background information, holding structure of the investment, details of the investor’s shareholders and directors, and sources of the investment capital.
If necessary, proof of investment capital, agreements of equity interest transfer (and other related agreements), evaluation documents of equity interest acquisition price, and information concerning the transaction process shall be submitted.
(b) The aforementioned “comprehensive and detailed operational plan” shall include future operational objectives, corporate structure and human resources planning, strategic planning for operation and marketing, detailed cost analyses and financial plans, impact towards the invested enterprise’s revenues and earnings, impact towards the advancement of the invested enterprise’s industrial technology and operational capability, and whether or not the investment is beneficial towards the invested enterprise in advancing the development of other related industries or companies in Taiwan.
ii. Financial soundness of multi-layer holding structure:
The investor shall clarify that utilizing multi-layer holding structure for investment is necessary and reasonable, and, for the invested enterprise and other enterprises within its domestic holding structure, the reasonableness of each enterprise’s capital amount level, its financing issues, its operational status, as well as its financial conditions.
If necessary, a most recent financial statement reviewed and certified by a Certified Public Accountant (CPA), an analysis of the investor’s future solvency and financial feasibility, a copy of lending statement or lending agreement from a commercial bank, as well as the impact on tax collections, shall be submitted.
iii. Protection of workers' rights in Taiwan:
The investor shall clarify the following: the impact towards employment (as well as possibilities of future job creation), mandatory compliance in accordance with labor regulations, commitments to employees’ working conditions (as well as wage growth contributions), and whether or not cheap labor costs in Taiwan contributed to the investor’s incentives. The investor shall also submit an original declaration, stating that it will not damage domestic worker’s employment interests and that it will not violate Taiwan’s labor regulations.
iv. Protection of shareholders’ interests of the invested enterprise:
The investor shall submit a statement concerning the protection of shareholder’s interests of the invested enterprise, including recusal by directors, supervisors, and shareholders with effective influence from conflict of interest, their responsibilities of administrative prudence, and their duty of loyalty. Disclosure of critical and substantial information of the invested enterprise, and the protection of domestic shareholder’s interests, shall also be included.
v. Other items may be requested for review by the authorities concerned in accordance with the specificity of the application.