Taiwan to Drop Minimum Capital Requirements for Corporations

In response to a further call to reduce minimum capital requirements for incorporating companies, Taiwan's Legislative Yuan has passed a bill last month to ditch the minimum capital requirements for incorporating a company in Taiwan. The capital requirements for company limited by share and limited company are currently NTD500,000 and NTD250,000 respectively, which was a result of an amendment to the Company Act last year to reduce to a half of what they had been before said amendment. However, in response to calls to further strengthen the competitiveness of Taiwan as a regional operation hub, these capital requirements have been under heavy criticism because some of the most competitive countries do not have a minimum capital requirement. The new amendment is expected to be signed into law in the near future and people may start to see thinly capitalized corporations popping up.