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Provisions On Economic Compensation in Shanghai

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Q:
If the agent fails to handle the declaration of the company on time, will the Taiwan Company or the agent being penalty due to late filing?
A:
The Taiwan Company fail to declare on time, the Taiwan Company will be a penalty, not the agent.

Q:
If the information declared is incorrect, could it be corrected?
A:
Yes, the incorrect information could be corrected within the period of the declaration.

Q:
How to identify the manager that should be declared?
A:
The managers listed in the company registration form will need to declare, excluding the manager for the Taiwan branch office of the foreign companies.

Q:
Which kind of company will need to declare the information of the directors and shareholders?
A:
The Taiwan local company should handle the declaration. For the country-owned companies (The government-owned the shareholdings of a company with more than 50%) or a public listed company could exempt from the declaration.

Q:
Will the company being penalty if they violate the regulations of the declaration? Is there that penalty of fines?
A: According to the regulation of Subsection 4, Articles No.22-1 of the Company Acts, the company fails to declare or the information declared is misrepresented,  the central competent authority shall notify the company to rectify its law violating act within a given time limit; and if the company fails to take corrective action beyond the given time limit, the director representing the company shall be imposed with a fine of not less than TWD 50,000 but not more than TWD 500,000; and if the company still fails to take corrective action beyond the second given time limit, the director representing the company shall be imposed with a fine of not less than TWD 500,000 but not more than TWD 5,000,000 consecutively for each non-compliance until the law violating the act is rectified. If the violating act is material, the central competent authority may nullify its incorporation registration.

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