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New business entity in Taiwan: Close Company New business entity in

July 01, 2015, Company Act of Taiwan has been amended, and a new type of company has been enacted. “Cloes Company” is a kind of Company Limited by Shares in Taiwan. The most precising feature of Close Company is the restrictions on transfer of shares.

The focus of this amendment is on knowledge creation business to promote innovation and Internet economy.
This new kind of company formation is as to “close company” which has to be not publicly listed and fewer than 50 shareholders.
The advantage of a close company including the capital could be partially contributed by technical know-how, service or goodwill, set up restrictions on transfer of shares, shareholder meetings.

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