“Legal review for exemption from prior notification of overseas direct investment”

Law firm Veat undertook detailed reviews regarding foreign direct investment applications and third-party payment notifications, responding to a mandate from domestic company A regarding the establishment of overseas subsidiaries.

​The establishment of overseas subsidiaries is a principle that domestic companies must proactively undertake. However, investments of up to US$50,000 allow for the subsequent submission of notifications.

Law firm Veat’s Overseas Investment Reporting Center provides detailed explanations of the relevant regulations alongside clear guidance and comprehensively explains the legal matters that must be considered during subsequent reporting.

Furthermore, when transferring capital to overseas subsidiaries, the Center assesses whether the local establishment agents can prepay capital. Generally, consultation regarding compliance with these regulations is essential as payments to third parties require separate notification requirements.

Law firm Veat’s Overseas Investment Reporting Center provides the most optimal solutions for clients, ensuring compliance with the “Foreign Exchange Transactions Act” and foreign exchange regulations, and supports smooth implementation of complex foreign exchange transactions.

“Foreign Exchange Transactions Act” and foreign exchange regulations review for global market entry

Many companies have established overseas subsidiaries as their first step to enter the global market. However, this process involves more than just investment; it encompasses a complex process that requires strict adherence to domestic and foreign laws. The “Foreign Exchange Transactions Act” is particularly important here.

For participation in the management of a corporation established under foreign laws (including corporations under establishment, referred to as “foreign corporations” hereafter), the acquisition of shares or capital contributions will be subject to investment of more than 10% of the total issued shares or total capital of the foreign corporation (in cases where shares or capital contributions are jointly acquired, the total proportion of shares or capital contributions is referred to as “investment ratio” in this section).

Individuals residing abroad who wish to make foreign direct investments (including capital increases) or who receive shares or capital contributions from residing foreign direct investors to conduct foreign direct investment must report to one of the branches of the foreign exchange banks designated under Article 8(1) of the “Foreign Exchange Transactions Act”.

However, foreign corporations undertaking capital increases through internal retained earnings or capital surplus may report after the fact, and investments of up to US$500,000 can be reported within one month after the date of payment of funds.

Law firm Veat is a trusted partner for domestic companies venturing into the international market, providing professional legal advice on overseas investments.

Law firm Veat – Specialized Overseas Investment Reporting Center for Overseas Investment and Foreign Exchange Reporting

For startups and various companies preparing for a serious overseas expansion, Law firm Veat’s Overseas Investment Reporting Center has played a key role as a critical support for their successful global expansion. Law firm Veat’s Overseas Investment Reporting Center experts provide tailored professional advice based on their deep understanding of foreign exchange regulations and support companies in strategically navigating their international ventures.

Companies interested in preparing for foreign investment or with any questions, are welcome to contact Law firm Veat’s Overseas Investment Reporting Center.