Act Governing Relations between the People of the Taiwan Area and the Mainland Area Article 73

Unless permitted by the competent authorities, any individual, juristic person, organization, or other institution of the Mainland Area, or any company it invests in any third area may not engage in any investment activity in the Taiwan Area.Where any enterprise invested in accordance with the preceding paragraph is established as a company in accordance with the Company Law, the investors are exempt from the requirement to have domestic residence provided for in Paragraph 1 of Article 216 of the same Company Law.Rules governing the qualifications of investors, permission requirements, procedures, investment means, business items and amount limits, investment percentage, foreign exchange settlement, review and determination, re-investment, filing items and procedures, application format and any other requirements as prescribed in Paragraph 1 shall be drafted by the competent concerned and submitted to the Executive Yuan for approval.Any enterprise invested in accordance with Paragraph 1 shall file financial statements, the change of shareholding, or any other designated materials in accordance with the provisions of the rules prescribed in the preceding paragraph or the orders of the competent authorities; the competent authorities may send personnel to have an on-site inspection and the invested enterprises shall not avoid, impede, or refuse it.Where an investor transfers its investment, the transferor in conjunction with the transferee(s) shall apply to the competent authorities for permission.