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LAW AND INTELLECTUAL PROPERTY
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Security Market

Application for Investing in Taiwan Security Market

Oversea Chinese and foreign investors who want to invest in Taiwan Security Market must first register with the Taiwan Stock Exchange Corporation. Offshore oversea Chinese and foreigners should authorize a representative to arrange the registration for them and should assign a Custodian Bank in Taiwan to handle matters after registration. On shore oversea Chinese and foreigners may register through local security firms with the Taiwan Stock Exchange Corporation.
Qualification

1. Institutional Investors:

The companies established and registered outside of Taiwan, according to the laws and regulations of the foreign government.

1. Offshore Oversea Chinese and Foreign Individuals:

Refers to foreign individuals or overseas Chinese (except Mainland China) who are over 20 years old and have valid identification documents.

1. Onshore oversea Chinese and Foreign Individuals:

Refer to individual that have Oversea Chinese ID Cards or Alien Resident Certificate, and must be at least 20 years old.

1. Onshore Foreign Institutional Investors:

Refers to subsidiaries of foreign companies that are established in Taiwan
Documents required for Registration:
Offshore:
When applying for registration, the following documents are required:

1. Power of Attorney or Letter of Appointment to Appoint Representative; and
2. Identification certificates, in respect of:
1. Offshore Overseas Chinese and Foreign Natural Persons: passport, proof of identification or other documents which photograph of the applicant is attached thereto in order to prove applicant’s nationality or status.
2. Offshore Foreign Institution Investors:
3. Non-fund Type:
1. Corporation

Certificate issued by the foreign local authority such as company registration certificate, trading certificate, etc. and if there is no company registration certificate, the following documents may serve as replacement:

1. The articles of incorporation of which the foreign governmental authority has registered; and
2. The articles of incorporation of which the foreign governmental authority has registered; and
3. Qualification certificate issued by the tax bureau of the country where it is located
1. Other organizations established in accordance to the laws such foreign country, the non-profitable organizations, foundations and academic organizations The proof of establishment for such organization shall be furnished; if there is no such proof, the following documents may serve as replacement:
1. The articles of incorporation of which the foreign governmental authority has registered;
2. The Rule or Regulations which serves as the basis of establishment of such institution; or
3. Qualification certificate issued by the tax bureau of the country where it is located
2.  
1. Fund Type:

Proof of establishment of such cooperation in foreign country shall be furnished; if there is no such proof, the following documents may serve as replacement:

1. The record that is published in the local governmental website stating the fund has been established
2. Documents such as prospectus, Agreement in respect of Establishment of Trust or memorandum for private placement of which the foreign Government has recorded

Onshore:
For Natural Person – Overseas Chinese Identification Card, Passport or Alien Resident Certificate
For Foreign Company – The Recognition Certificate from the Ministry of the Economic Affairs, company registration Certificate, business registration certificate and Identification Document of the Responsible Person.

Investment Quotas:

Limitations
In terms of Article 21 of Regulations Governing Investment in Securities by Overseas Chinese and Foreign Investors, foreign capital remitted inwardly must be invested directly in domestic securities and comply with the following regulations:

1. Not to be engaged in any securities trading;
2. Not to sell any securities that are not yet in possession;
3. Not to lend/release funding for furnish warranty; and
4. Not to appoint any juristic person or individual to keep the securities other than the custodian organization or centralized securities safekeeping organization

The investment scope for the offshore overseas Chinese and foreign investors invest in Taiwan securities are limited to the following:

• The stock, the certificate of entitlement to new share from convertible bond, and Taiwan depositary receipt of the publicly offered or privately placed by the listed companies, the companies in OTC and Emerging Stock.
• Securities Investment Trust Fund Beneficiary Certificate
• Government bond, monetary bond, general corporate bond, convertible corporate bond, and corporate bonds with warrants.
• The beneficiary certificate publicly offered or privately placed by the entrusted organization, the asset-based securities publicly offered or privately placed by the company with special purpose.
• Share subscription (sale) warrant certificate.
• Other securities approved by the Financial Supervisory Commission, Executive Department