Key Takeaways

  • Xiamen incorporation still follows the unified mainland Company Law; the LLC is the common vehicle.
  • Xiamen is a cross-strait trade frontier with dedicated facilitation for cross-strait trade and Taiwan-invested enterprises.
  • The 2024 new Company Law shortens the capital subscription period to within 5 years.
  • Cross-strait business involves two-side qualifications, customs and cross-border settlement — plan ahead.
  • Exact thresholds, documents and incentives are subject to the latest policy/rules at time of filing.

Introduction

Founders in cross-strait trade often treat Xiamen as the natural bridgehead — shared language, close port, dense Taiwanese business community. But when actually incorporating a "cross-strait trading company," questions appear: is registration the same as a normal domestic company? Does Taiwan capital count as foreign? What facilitation can I get?

The answer is not complicated, but has details. Xiamen's entity formation follows the unified mainland Company Law; the facilitation shows up mainly in dedicated cross-strait economic channels. This article covers both the process and those channels in one pass.

1. What Company to Register in Xiamen

01 Limited Liability Company (LLC)

The default vehicle　Most domestic or joint-venture cross-strait trading companies are LLCs; shareholders are liable only to the extent of subscribed capital.

02 Legal status of a Taiwan-invested enterprise

Managed as foreign-invested　Taiwan investors incorporating on the mainland are treated as foreign investment, must file foreign investment information, and follow foreign-invested procedures (subject to the latest rules).

03 Individual business (Taiwan residents only)

Lightweight option　Eligible Taiwan residents may set up an individual business on the mainland, with limits on industry and scale — one light landing route.

2. Standard Formation Process

01 Name and industry wording

Fix the name first　Self-declare the name via the Fujian government service portal; a cross-strait trading company may reflect "import/export" or "cross-strait trade" in its business scope, within the prescribed items.

02 File formation registration

Online filing　Enter shareholders, directors, supervisors, manager, registered address and business scope, upload supporting documents, and the market regulator reviews.

03 Licence and seals

Issue and file　After collecting the business licence, engrave and file the official, finance and legal-representative seals.

04 Bank, tax and customs

Three landing steps　Open a basic account and complete tax reporting; if trading across borders, also obtain import/export operating rights and customs declarant registration. Timelines are subject to the latest rules.

3. New Capital Subscription Rules (from 2024)

01 Five-year paid-in deadline

Shorter window　From 1 July 2024, under the new Company Law, subscription must be completed within 5 years from incorporation in principle; existing companies have a transition arrangement. Subject to the latest rules.

02 Funding plan

Subscribe to capacity　State capital by real need; an inflated figure enlarges future paid-in and liability exposure.

03 Paid-in milestones

Pay per articles　Shareholders pay in instalments or in full by the schedule in the articles; default hurts credit and liability.

4. Facilitation for Cross-Strait Trade

01 Cross-strait trade frontier

Dedicated channels　Xiamen, as a cross-strait trade frontier, offers facilitation and dedicated windows for customs clearance, small-amount cross-strait trade and Taiwan-invested enterprise services; the catalogue and applicability are subject to the latest policy.

02 Cross-strait trading company qualifications

Import/export rights　Cross-strait import/export requires import/export operating rights and customs registration; some small-amount cross-strait trade has simplified channels, subject to the latest rules.

03 Taiwan-invested enterprise services

Dedicated desk　Several Xiamen districts run Taiwan-business service desks for incorporation, registration and policy linkage, reducing trial and error.

5. Cross-Border Settlement and Tax Notes

01 Cross-border RMB settlement

RMB is an option　Cross-strait trade can explore cross-border RMB settlement to cut exchange-rate risk; specific business and limits are subject to the latest bank and FX rules.

02 Tax filing

Normal taxation　Companies pay VAT, corporate income tax etc. under the mainland tax law; benefits from encouraged industries or regional policy need case-by-case qualification, subject to the latest policy.

03 Transfer pricing

Related-party compliance　Transactions with Taiwan related parties must meet transfer-pricing and contemporaneous-document requirements to avoid tax adjustments.

6. Common Pitfalls and Speed-up Tips

01 Prepare qualifications at once

Fewer rejections　Get import/export rights, customs registration and address proof ready in advance to speed things up markedly.

02 Taiwan-capital identity

Foreign-invested steps　Taiwan capital is treated as foreign-invested and needs FDI information filing and FX registration; omitting them slows account opening.

03 Use the right service window

Parks and Taiwan chambers　Xiamen Taiwan-investment zones and free trade areas have dedicated services — consult before submitting.

FAQ

Q1: Is registering a cross-strait trading company in Xiamen the same as a normal company? A1: Entity formation follows the unified mainland Company Law and is basically the same as domestic; if it includes Taiwan capital it is treated as foreign-invested and needs a foreign investment information filing. Subject to the latest rules.

Q2: Does Taiwan capital count as foreign investment? A2: Taiwan investors incorporating on the mainland are treated as foreign investment and follow foreign-invested procedures and filing; Xiamen additionally offers dedicated cross-strait channels.

Q3: What extra qualifications does cross-strait trade need? A3: Beyond the licence, you usually need import/export operating rights and customs declarant registration; some small-amount cross-strait trade may have simplified channels, subject to the latest policy.

Q4: How much registered capital should I state? A4: Base it on a real funding plan. The new Company Law requires subscription within 5 years in principle; inflating only adds pressure.

Q5: What cross-strait facilitation does Xiamen offer? A5: Xiamen has dedicated windows and facilitation for cross-strait customs, small-amount trade and Taiwan-invested enterprise services; the catalogue and applicability are subject to the latest policy, not a blanket tax exemption.

Q6: Can you quote a registration fee? A6: No specific price is given. Government fees and agency fees depend on structure and region; ask an adviser for an itemised quote.

Related Services and Next Steps

  • Xiamen / Fujian company services (see 開始我的事業服務內容)
  • Guangzhou / Nansha company services (see 開始我的事業服務內容)
  • Hong Kong company services (see 開始我的事業服務內容)

Subject to the latest policy; for a concrete plan, please consult an adviser.