K&L Gates LLP (JD Supra Taiwan)

Two separate legal regimes currently govern Taiwan’s payment institution and electronic money industries: On electronic money, the Act Governing Issuance of Electronic Stored Value Cards (電子票證發行管理條例), promulgated in January 2009, governs electronic money institutions on the issuance of an IC (integrated circuit) chip, card, certificate or other forms of debt obligation that utilize electronic,...

The Taiwan Labor Standards Law (LSA) provides strict measures protecting dismissed employees, and Taiwan employers are required to fully comply with these termination requirements when dismissing their employees. Unlike jurisdictions such as the United States, there is no 'at-will' employment in Taiwan.

It is a common practice for employers to impose non-competition obligations on employees both during and after termination of employment. The long standing issue is whether these obligations violate the right to work under Constitutional Law and to what extent such obligations will be enforced against the employee after his or her departure.

To encourage financial services industry and the related industry to apply innovative technology for enhancing financial accessibility, practicability, and quality, on May 4, 2017, Taiwan’s Executive Yuan proposed the bill called “Financial Technology Innovation Experimentation Act” (the “Bill”) to create its version of “regulatory sandbox.” It would enable experimenting innovative financial...

On January 8, 2016, an amendment (the “Amendment”) to Taiwan’s Business Mergers and Acquisition Act (the “Act”) has become effective. Through this amendment, the government hopes to encourage M&A activities in Taiwan by providing more flexibility in structuring, relaxing restrictions on consideration, and increasing the efficiency of M&A procedures, while strengthening transparency to enhance...

On June 24, 2015, the new Limited Partnership Act was announced by President Ma Ying-jeou and will become effective on a date to be set by the Executive Yuan. The Act allows the establishment of a limited partnership in Taiwan, an action which grants enterprise operators and passive investors the opportunity to make use of a new legal structure.

On July 1, 2015, an amendment (Amendment) to the Company Act of Taiwan took effect to establish a new category of company under the new Chapter 13, called “closely-held company limited by shares”, hereinafter, a 'close company'), aiming to provide start-up companies with a degree of flexibility when dealing with the limitations of a company limited by shares under the Company Act.

On February 4, 2015, Taiwan promulgated the Act Governing Electronic Payment Institutions, and pursuant to the Act, the Financial Supervisory Commission on April 27, 2015 announced a series of enforcement rules of the Act, including the Rules Governing EPI Businesses. Both the Act and its enforcement rules have come into effect on May 3 2015.

Taiwan’s Fair Trade Act (FTA) governs the maintenance of the trading order, protects consumers’ interests, ensures fair competition and promotes economic stability and prosperity. Noznetheless, there were originally no provisions in the FTA or other Taiwan laws regulating online or offline 'astroturfing,' i.e. paying someone (a paid poster) to promote an advertiser’s products or to criticize the...

Taiwan has approximately 369 multi-level marketing (MLM) companies and a total of 3.09 million MLM participants, as of December 31, 2012. Adjusting for people who participate in more than one MLM company, almost 12% of Taiwan’s total population participates in at least one MLM business.

Before offshore funds may be publicly offered and distributed in Taiwan, they must be registered with the Securities and Futures Bureau of the Financial Supervisory Commission (SFB). In order to be registered with the SFB, the funds must meet the eligibility qualifications stipulated in various laws and regulations. The funds must also comply with certain limitations including investments (investm

As Taiwanese manufacturers rely strongly upon licensed technologies to compete in world markets, Taiwan’s Fair Trade Commission (the “FTC”) issued its Guidelines for Technology Licensing Arrangements on January 20, 2001, which were last amended on March 12, 2013 (the “Licensing Guidelines”) to provide a clear roadmap for the licensing of technology. The following snapshot of the Licensing...