On November 9, 2010, the National Development and Reform Commission (NDRC), the Ministry of Commerce (MOFCOM) and the Taiwan Affairs Office of the State Council (“Taiwan Affairs Office”) jointly released the Administrative Measures for Investment by Mainland Enterprises in the Taiwan Region (“Measures”). Some key provisions of the Measures are summarized below.

For the purpose of encouraging and regulating investment in the Taiwan Region, the Measures set out general principles regarding such investment, necessary qualifications and conditions of mainland enterprises, and clarify relevant procedures and authorities for the approval of such investments.

  • In connection with investment projects in the Taiwan Region, enterprises shall submit their applications to the provincial development and reform commission (DRC) for initial examination. The provincial DRC will then forward the application, along with its recommendations, to the NDRC for final approval. State-owned enterprises administrated by the national government are required to file their applications directly to the NDRC for approval. Examinations will be conducted in accordance with the Tentative Measures for Approval of Overseas Investment Projects.
  • With respect to the establishment of an enterprise or non-enterprise legal person in the Taiwan Region, enterprises shall submit applications to provincial commercial authorities for initial examination. The local commerce authority will then forward the application, along with its recommendations to the MOFCOM for final approval. State-owned enterprises administrated by the national government are required to submit their applications directly to MOFCOM for approval. Examinations will be conducted in accordance with the Tentative Measures for Approval of Overseas Investment Projects.
  • The NDRC and MOFCOM’s examination is to be conducted in consultation with the Taiwan Affairs Office.
  • Mainland enterprises are required to register with the NDRC, MOFCOM and the Taiwan Affairs Office within 15 working days upon completion of registration formalities in the Taiwan Region, and engage in relevant procedures when altering or terminating their investment.
  • Approval by the NDRC and filing with MOFCOM is also required when a Mainland enterprise seeks to make its investment in the Taiwan Region through a foreign enterprise.
  • Circular on Promulgating Administrative Measures for Investment by Mainland Enterprises in the Taiwan Region
  • Issuing Authority: the National Development and Reform Commission, the Ministry of Commerce and the Taiwan Affairs Office of the State Council
  • Date of Issuance: November 9, 2010/ Effective Date: November 9, 2010