Construction—Taiwan—Q&A guide
Construction—Taiwan—Q&A guide

The following Construction practice note provides comprehensive and up to date legal information covering:

  • Construction—Taiwan—Q&A guide
  • 1. If a foreign designer or contractor wanted to set up an operation to pursue the local market, what are the key concerns they should consider before taking such a step?
  • 2. Must foreign designers and contractors be licensed locally to work and, if so, what are the consequences of working without a licence?
  • 3. Do local laws provide any advantage to domestic contractors in competition with foreign contractors?
  • 4. What legal protections exist to ensure fair and open competition to secure contracts with public entities, and to prevent bid rigging or other anticompetitive behaviour?
  • 5. If a contractor has illegally obtained the award of a contract, for example by bribery, will the contract be enforceable? Are bribe-givers and bribe-takers prosecuted and, if so, what are the penalties they face? Are facilitation payments allowable under local law?
  • 6. Under local law, must employees of the project team members report suspicion or knowledge of bribery of government employees and, if so, what are the penalties for failure to report?
  • 7. Is the making of political contributions part of doing business? If so, are there laws that restrict the ability of contractors or design professionals to work for public agencies because of their financial support for political candidates or parties?
  • 8. Is a construction manager or other construction professional acting as a public entity’s representative or agent on a project (and its employees) subject to the same anti-corruption and compliance as government employees?
  • 9. Are there any other important legal issues that may present obstacles to a foreign contractor attempting to do business in your jurisdiction?
  • More...

This Practice Note contains a jurisdiction-specific Q&A guide to construction rights in Taiwan published as part of the Lexology Getting the Deal Through series by Law Business Research (published: August 2020).

Authors: Pinsent Masons—Helena H C Chen

1. If a foreign designer or contractor wanted to set up an operation to pursue the local market, what are the key concerns they should consider before taking such a step?

To set up an operation to pursue the Taiwanese market, all foreign contractors will be required to do the following:

  1. obtain approval from the relevant local authority;

  2. set up a local entity, which can be a subsidiary, branch or partnership, with proper company registration or business registration (as the case may be);

  3. obtain a construction enterprise registration certificate;

  4. join the association of the construction industry;

  5. maintain a specific amount of company capital (in the case of a subsidiary) or capital for operations in Taiwan (in the case of a branch) as required by law; and

  6. employ full-time professional engineers as required by law.

To set up a professional engineering consulting firm to pursue the Taiwanese market, all foreign designers will be required to do the following:

  1. obtain approval from the relevant local authority;

  2. set up a local entity;

  3. obtain a registration certificate for the professional engineering consulting firm;

  4. join the national or a local association of engineering consultants; and

  5. maintain

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