Taiwan Branch Office Deregistration Package #TWBO6
(For Company Registered in place other than Mainland China)
This package is suitable for overseas, Hong Kong and Macau registered company (other than Mainland China Company) in intending to apply to deregister its branch office in Taiwan.
The package includes all procedures required for the purpose of deregistration of a branch office in Taiwan. Specifically included apply de-registration company in Ministry of Economic Affairs, as well as to the National Taxation Bureau of Taipei, Ministry of Finance, Bureau of Foreign Trade, Taiwan courts and banks for the de-registration procedures. After the completion of all the previous procedures, its Taiwan branch office deregistration procedures is finished.
- Taiwan Branch Office Deregistration Procedures
Under normal circumstances, the application for Taiwan branch office deregistration takes about six months, please refer to the following procedure
(1)
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Submit a deregistration application
After the approval of deregistration, the office will issue a Deregistration letter of approval.
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(2)
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Submit the cancellation of business registration and tax declaration
- Within 10 days from the date of the approval of deregistration from Taiwan Ministry of Economic Affairs, declare and deduct the current salary, interest, rent, royalty and other kinds of income to the National Taxation Bureau, declare and fill in withholding vouchers.
- Within 15 days from the date of the approval of deregistration from Taiwan Ministry of Economic Affairs, declare and withhold the current business tax to the National Taxation Bureau.
- Within 45 days from the date of the approval of deregistration from Taiwan Ministry of Economic Affairs, report the profit tax on the profit for the current year (January 1 to the date of cancellation) to the National Taxation Bureau.
After submitted the cancellation of company registration to National Taxation Bureau and complete the tax declaration, National Taxation Bureau, it will issue an approval letter of the cancellation of the business registration.
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(3)
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Report Liquidation of liquidator to the court
- The company selected the liquidator and report the liquidation to the court, submit the settlement of application documents. The application documents contain statements, income statement, financial position and meeting record and property catalogs of parent company, etc.
- Only the litigation and non-litigation agent or manager of the branch office may act as the liquidator of the company. The term of office of the liquidator shall not exceed six months, and if want to extend the liquidation period, shall be filed and report to the court before the expiry of six months and every extension is no longer than six months.
- Published in the Taiwan Daily newspaper for the notice of deregistration of the company for three days, and send by mail to notify the creditors, creditors declare the creditor’s certificate to the company within three months from the date of receipt or the receipt of registration.
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(4)
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Company handle the liquidation of assets and debts and liabilities, report the tax declaration during the liquidation period to the National Taxation Bureau
- Within 15 days from the date of completion of the liquidation, declare and pay the business tax during the liquidation period.
- Within 30 days from the date of completion of the liquidation, declare and pay profit tax.
- After completing the tax declaration during the liquidation period, apply the approval letter for the tax declaration during the liquidation period to the National Taxation Bureau. Upon completion of the tax declaration during the liquidation period, National Taxation Bureau will issue the approval letter. If the filing period during the liquidation period of the authorities exceed the period of the liquidation of the court, the company shall apply for extension to the court and extend once every six months.
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(5)
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Report Completion of Liquidation to the court
After the completion of tax declaration during the liquidation period, apply for the settlement of liquidator to the court and the liquidation of the final report. Remember to attach the income statement, balance sheet, property catalog, the surplus property distribution table and the liquidation period declaration form issued by the National Taxation Bureau. Once get the court approved the registration, the court will issue the approval letter for the liquidation of the declaration.
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(6)
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Settle the bank account
After the company completes the liquidation, reporting and registration procedures, go to the bank and apply for closing the bank account. The signatory of the company’s bank account (litigation and non-litigation agent or branch manager) must go to the bank in Taiwan in person to handle the closure of the bank account.
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(7)
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Cancel import and export manufacturer’s registration in Bureau of Foreign Trade
If the company is a trading company, it needs to cancel the import and export registration in the Bureau of Foreign Trade.
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- Estimated time frame
Branch Office deregistration procedure takes about 6 months, it is shown in the following table:
Table 1: Taiwan Branch Office Deregistration Schedule
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Item
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Descriptions
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Working Days
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Responsible Party
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Preparation
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1
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Clients provide company documents and information
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Client Plan
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Client
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2
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Kaizen preparation and company deregistration application documents
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2 days
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Kaizen
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3
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Client signature of company deregistration application documents
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Client Plan
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Client
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Apply for deregistration of the company
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4
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Submit application documents
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7 days
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Kaizen
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5
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Submit the business deregistration and tax declaration documents
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7 days
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Kaizen
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6
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Report Liquidation of liquidator to the court
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7 days
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Kaizen
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7
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Handle company’s assets and debts clean-up and liquidation
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Depend on the actual situation
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Client
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8
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Report liquidation to National Taxation Bureau and tax declaration and payment
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Depend on the actual situation
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Kaizen
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9
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Report the end of liquidation to the court and dismiss the liquidator
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Depend on the actual situation
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Kaizen
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10
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Closure of the bank account (Note 3)
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1 day
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Kaizen
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11
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Cancel the registration for import and export manufacturers in the Bureau of Foreign Trade (Only for trading companies)
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1 day
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Kaizen
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Total Time Required
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About 6 months
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Note:
(1)
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The time listed above is based on the application goes smoothly and client is closely cooperated with us as basis.
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(2)
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The time listed above is based on the Taiwan branch office does not required an additional application for cancellation of the special license.
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(3)
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The signatory (i.e. litigation and non-litigation agent or manager of the branch) of the company’s bank account is required to go to Taiwan in person.
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- Services Fees
Kaizen provides a Taiwan branch office deregistration service, costs and fees is shown in Table 2 in below.
Table 2: The fees for deregistration of a Taiwan branch office
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Item
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Description
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Amount (TWD)
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1
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Service fee for Deregistration of Branch Company
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20,000
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2
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Service charges of closure of bank account
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8,000
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3
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Cancel of registration of import and export company (Only for trading company)
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4,000
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4
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Branch company income tax, business tax and profit tax declaration
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10,000
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5
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Branch company income tax, business tax and profit tax declaration during the liquidation period.
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10,000
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6
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Report the declaration to the court
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50,000
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7
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Prepayment of government fees, miscellaneous fees and postage fees (Note 1)
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2,000
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Total
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104,000up
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Note:
(1)
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The fee above does not include the government fees, bank charges and other third-party fees. Kaizen would charge TWD 2,000 in advance, reimbursed for actual expenses. (2) If the costs more than TWD 2,000, exceeding part will be separated for settlement.
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(2)
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The fee above does not include document translation fee. For the document need to translate to Chinese version, or client needs an English version of registration document for reference, we will charge an additional translation fees, about TWD 1,500 for an A4 page, specific prices are subject to the actual situation.
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(3)
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The quotation above is not applicable to deregistration the Mainland China branch office in Taiwan.
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- Required Documents and Materials
(1)
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Client wishes to liquidate the financial information of the current year, including the balance sheet, income statement and vouchers;
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(2)
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Seal of company registered, litigation and non-litigation agent and branch office manager;
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(3)
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Copy of identity document of the liquidator, only the litigation and non-litigation agent or the branch manager of the branch office may act as the liquidator of the company;
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(4)
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The latest copy of registration document of the Ministry of Economic Affairs;
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(5)
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Original of Taiwan Uniform Invoice Purchase Certificate;
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(6)
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Original of bankbook of Company bank account
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- Certificates and Documents to be Returned to Client
After the procedure completed, we will return the following documents to the client:
(1)
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Approval letter of deregistration by Taiwan Ministry of Economic Affairs;
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(2)
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Approval letter of cancellation of certificate of business registration by National Taxation Bureau of Taiwan;
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(3)
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Approval letter of the liquidator appointed;
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(4)
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Approval letter of the declaration of the company during the liquidation period by National Taxation Bureau of Taiwan;
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(5)
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Approval letter of the liquidation declaration by the Court;
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(6)
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Approval letter of cancellation of import and export manufacturers registration by Bureau of Foreign Trade;
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(7)
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Seal of company registered, litigation and non-litigation agent and branch office manager;
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(8)
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Copy of documents for deregistration of company.
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- Important Note
(1)
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According to the Taiwan Company Act, the cancellation of the Taiwan branch office needs to include the court liquidation procedures to eliminate the legal personal. However, if the company’s business and financial situation is simple, may consider ignoring the court’s procedures, only apply to the tax declaration can be settled, the liquidation process will be shortened to around three months. If you require this method, you can discuss with our professional consultants.
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(2)
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If the business of the Taiwan branch office requires another cancellation of the special permission or license, the fee will be adjusted accordingly.
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