Chinese Capital to Taiwan

Ministry of Economic Affairs promulgated “Regulations Governing Investments from Mainland Chinese to Taiwan” and “Investment from Mainland Chinese to Specific Industries of Taiwan” on June 30, 2009. The launch of these Regulations, which were stipulated according to “Act Governing Relations between the People of the Taiwan Area and the Mainland Area”, opened not only the door for mainland Chinese to make an investment in Taiwan, but also the era of bi-directional investments across the strait. Besides, the capital inflow from mainland China also facilitates the integration of cross-strait industries with respects to production, technology, distribution channels and branding. All of these will help Taiwan to move towards the global market and create a win-win situation for mainland China and Taiwan.

In the first stage, 192 items from three major industries – manufacturing, service and public engineering industries – were opened to investment. To comply with amendments to three financial laws of Financial Supervisory Commission (FSC), Executive Yuan and the “Early Harvest List for Service Industry” of Economic Cooperation Framework Agreement (ECFA), 12 items from banking, insurance and securities industries, and 1 item from other sports service industry were opened to mainland Chinese investments on May 20, 2013 and January 1, 2014 respectively. On March 7 of the same year, 42 items were opened in the second stage. For example, investors who strategically attracted mainland Chinese capital may build integrated circuit, semiconductor packaging and testing, LCD panel and component production facilities through equity investment or joint venture. The number of investment items accumulated in the first and second stages was 247, including 89 items from the manufacturing industry, 138 items from the service industry, and 20 items from public constructions.

As of July of 2016, 878 applications were approved with a total amount of US$1,608.83 million according to “Quick Report on Approved Overseas Chinese and Foreign Investment, Investment from Mainland China, Outward Investment, and Investment to Mainland China” issued by Investment Commission, Ministry of Economic Affairs.

Type of investment from mainland Chinese enterprises to Taiwan.

Establishment branches, sole proprietorship business or partnership business in Taiwan.
Possession of shares or capital contribution of a company or business in Taiwan.
Establish an office in Taiwan.

Investors are individual who have come to Taiwan to act as directors or supervisors of the investment business. Investors are juridical person who may be the directors of the investment business or supervisors from the mainland.
Paid by the amount of NT $ 30 million or more of the land investment business, should be within the end of each fiscal year six months, seized by the accountant's financial statements, shareholder list and other designated information, reported to the competent authorities for future reference.

References: Investment Commission, Ministry of Economic Affairs.
Negative List for Investment in Mainland China – List of agricultural, manufacturing or service products that are prohibited for investment in mainland China.

Services of BWKP

Investment planning for mainland Chinese Capital to Taiwan
Mainland Chinese to Taiwan
Establishment of and/or change to mainland Chinese companies, branches and offices.
Counseling for real estate investments from mainland China to Taiwan.
Accounting and tax planning and declaration services.