Implementation of Relevant Provisions on Profit-seeking Enterprises in the Mainland Area and Their Invested Profit-seeking Enterprises in the Third Area (Taiwan)

January 2023

Teresa Huang and Sally Yang

In November 2022, the Executive Yuan and the Ministry of Economic Affairs separately released the Partial Amendments to the Act Governing Relations between the People of the Taiwan Area and the Mainland Area (hereinafter, the “Act”) and the Regulations Governing the Permission of Establishing Branches or Agencies in Taiwan by Profit-seeking Enterprise in Mainland Area or Their Invested Profit-seeking Enterprises in the Third Area , both of which came into effect on November 18, 2022.

I. Implementation of the provisions of the Act that restrict illegal investment in Taiwan by Mainland Chinese investors through the third area

1. The Executive Yuan prescribed through the Yuan-Tai-Fa-1110035755 Directive of November 17, 2022 that Articles 40-1, 93-1, and 93-2 of the Act as amended on June 8, 2022 shall go into effect on November 18, 2022.

2. For the contents of the above provisions relating to the restrictions on illegal investment in Taiwan by Mainland Chinese investors through the third area, please see the Firm’s newsletter released in June 2022 and titled Partial Amendments to the Act Governing the Relations Between the People of the Taiwan Area and the Mainland Area via Presidential Directive.

 II. The implementation of the Regulations Governing the Permission of Establishing Branches or Agencies in Taiwan by Profit-seeking Enterprise in Mainland Area or Their Invested Profit-seeking Enterprises in the Third Area

1. The Ministry of Economic Affairs prescribed through the Jing-Shang-11102432920 Directive of November 18, 2022 that the Regulations Governing the Permission of Establishing Branches or Agencies in Taiwan by Profit-seeking Enterprise in Mainland Area or Their Invested Profit-seeking Enterprises in the Third Area shall go into effect on November 18, 2022.

2. For the relevant content of the above regulations, please see the Firm’s newsletter released in August 2022 and titled Draft Amendments to the Regulations Governing the Approval of the Establishment of Branch Offices or Representative Offices in Taiwan by Profit-seeking Enterprises in the Mainland Area or Their Invested Profit-seeking Enterprises in a Third Area Pre-announced by the Ministry of Economic Affairs of Taiwan.


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