A Taiwanese customer has not paid your invoices. Before choosing a legal procedure, establish who owes the debt, where the dispute can be heard, and whether there are assets worth pursuing.

Fuda Law Firm (FDLAW) assists overseas businesses seeking to recover unpaid commercial debts from Taiwanese companies. We assess contracts, evidence, Taiwan litigation, provisional attachment and the enforcement route, with direct English communication and a focus on realistic recovery—not a promise of payment.

Discuss a Taiwan Debt Claim LINE Contact Call +886-2-7709-3611

When a Taiwanese Company Fails to Pay

You may have delivered goods, completed services or accepted repeated requests to extend payment, only to face silence, deductions or a new quality complaint. We assist with unpaid invoices, OEM/ODM payment disputes, specification and acceptance issues, distribution and supply agreements, cross-border service fees and defaults under international contracts.

No judgment or award yet?

Start with the contracting entity, proof of performance, dispute-resolution clause and debtor's assets. A demand, negotiated settlement, lawsuit or arbitration may serve different objectives.

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Already have a judgment or award?

The route into Taiwan enforcement depends on where the decision was made and whether it is a court judgment or an arbitral award. Recognition is not the same as collecting money.

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A trading name or group affiliation is not enough to identify the defendant. The buyer, consignee and paying company may be different legal entities. A director or related company is not automatically liable for a company's debt.

Can a Foreign Company Sue in Taiwan?

A Taiwan office is not automatically required

The absence of a Taiwan branch does not, by itself, prevent an overseas company from bringing a claim. Its legal existence, capacity to be a party, authorized representative and litigation authority must be established. Mainland Chinese companies require separate consideration under the applicable cross-strait rules.

A foreign plaintiff without a Taiwan domicile, office or place of business may be ordered, on the defendant's application, to provide security for litigation costs under Article 96 of the Code of Civil Procedure. Statutory exceptions apply; this is not an automatic security requirement for every foreign creditor.

Jurisdiction and governing law are separate questions

We examine the defendant's Taiwan connections, the agreed forum, place of performance and any arbitration clause. Assets in Taiwan do not automatically give a Taiwan court jurisdiction over every underlying dispute. A contract selecting foreign law does not necessarily exclude Taiwan proceedings, and selecting a Taiwan court does not make every substantive issue subject to Taiwan law.

For ordinary foreign-element contracts, Articles 20 and 36 of the Act Governing the Choice of Law in Civil Matters Involving Foreign Elements are relevant to contractual governing law and limitation periods. Do not assume that a domestic Taiwan limitation period for goods claims applies to every international receivable. Mainland-related contracts have separate statutory rules that also need to be checked.

Arbitration, representation and service

A binding arbitration agreement may require the claim to proceed in arbitration rather than litigation. We check its scope and procedural effect before filing. Company registration and representative-authority documents, a power of attorney and evidence may require Chinese translations and authentication or verification appropriate to their origin. Service of court documents must follow the applicable procedure; an email acknowledgment alone is not necessarily valid judicial service.

What Documents Should You Prepare?

1. Contracting parties and agreed terms

Provide the parties' full registered names, countries of incorporation and available company records; the contract, quotations, purchase orders, order confirmations and standard terms. Highlight payment dates, delivery and acceptance terms, guarantees, governing law, jurisdiction and arbitration clauses. Include competing versions of the terms rather than selecting only the favorable version.

2. Performance and the outstanding balance

Match each commercial invoice to the relevant order, shipping documents, delivery receipt and acceptance records. Prepare an account statement showing currency, due dates, partial payments, credits, interest claimed and the balance. Include quality reports, return requests, deductions and set-off allegations.

3. Communications and current proceedings

Preserve emails and messaging records in their original form, especially debt acknowledgments, extensions, settlement proposals and admissions about delivery. If proceedings have started, send the complete pleadings, judgment or award, service records and evidence of finality or binding effect. Flag every imminent deadline.

4. Debtor and asset information

Share lawfully obtained information about the Taiwanese debtor's premises, bank details used in the transaction, receivables, property, shares, security and business status. Tell us your objective: prompt settlement, an enforceable payment arrangement, asset preservation or contested proceedings.

Debt Recovery Options in Taiwan

Formal demand letters

A demand should state the contractual basis, amount, deadline and reservation of rights, using the required notice method. It may clarify the dispute or support negotiations, but it does not compel payment, attach assets or necessarily preserve a limitation period. Urgent asset risks should be assessed in parallel.

Negotiation and settlement

A settlement needs workable payment dates, currency, default terms and any agreed security. We assess whether an enforceable arrangement can be created and whether the original debtor's liability remains intact. A promise from an assetless affiliate may weaken rather than improve the creditor's position.

Payment orders and their limitations

A payment order may suit an eligible monetary claim, but it is not a universal shortcut. Article 509 of the Code of Civil Procedure excludes the procedure where the creditor has not performed the required counter-performance, or the order must be served abroad or by public notice. Foreign creditor status alone is not the same as overseas service on the debtor. Jurisdiction, service and the effect of any objection must be assessed.

Civil litigation

Where liability, defects, acceptance or deductions are contested, court proceedings may be needed to establish the claim. We organize the transaction chronology and evidence, identify the applicable law and assess procedural cost against the amount realistically recoverable.

Arbitration

Arbitration depends on a valid agreement or another applicable legal basis. The seat, institution, rules and resulting award affect costs and enforcement. Under Article 4 of The Arbitration Law of ROC, a qualifying request by the other party can require court proceedings brought despite an arbitration agreement to be stayed, subject to the statutory conditions.

Provisional attachment

Provisional attachment may preserve Taiwan assets before the final outcome, but overdue payment alone does not guarantee relief. The creditor must substantiate the claim and grounds for preservation, including the risk of future enforcement becoming impossible or seriously difficult. Article 523 and Article 526 of the Code of Civil Procedure govern key requirements. Security may be required; offering security does not eliminate the need for an adequate application. Execution deadlines, subsequent proceedings and liability for wrongful preservation also matter.

Compulsory enforcement

An appropriate enforcement title is needed before seeking execution against Taiwan assets. A Taiwan judgment, a recognized mainland decision, a foreign judgment permitted to be enforced and a recognized foreign award reach that stage through different routes. Asset ownership and priority rights must still be investigated.

Enforcing Foreign Judgments and Arbitral Awards in Taiwan

The decision's place of origin and legal character determine the next step. Do not treat recognition, permission to enforce, an enforcement title and actual recovery as interchangeable.

Mainland Chinese civil judgments and awards

Article 74 of the Act Governing Relations between the People of the Taiwan Area and the Mainland Area provides a court-recognition route for final civil decisions and civil arbitral awards from mainland China. Public-order and good-morals requirements and the statutory reciprocity condition must be satisfied. A recognized decision requiring performance can become an enforcement title. Obtain the relevant finality, service and verified documents; document verification is not itself judicial recognition. This is not the ordinary foreign-judgment procedure under Article 402.

Judgments from other foreign jurisdictions

Article 402 of the Code of Civil Procedure addresses refusal to recognize a final foreign judgment, including jurisdiction, proper notice to a non-appearing defendant, public policy and reciprocity. Recognition of legal effect is distinct from permission to execute against assets.

Under Article 4-1 of The Compulsory Enforcement Act, enforcement based on a final foreign court judgment requires a Taiwan judgment permitting enforcement and satisfaction of the Article 402 framework. A US, UK or other foreign judgment is therefore not automatically executable in Taiwan. The resulting enforcement title must then be used in the appropriate execution proceedings.

Foreign arbitral awards

Articles 47–51 of The Arbitration Law of ROC govern recognition of foreign awards. A recognized award has the effect of a final court judgment and may serve as an enforcement title. The award, arbitration agreement, relevant arbitration laws or rules, Chinese translations and required authentication must be prepared. Public policy, arbitrability, agreement and procedural defects, binding status and other statutory grounds can prevent recognition. Recognition and payment are not guaranteed.

Hong Kong and Macau decisions

Article 42 of the Act Governing Relations with Hong Kong and Macau requires separate treatment. For civil court decisions, the current Chinese statutory text applies the Article 402 and Article 4-1 framework; arbitral awards require assessment under that provision and the relevant arbitration rules. Do not automatically use the mainland Article 74 route. The controlling Chinese text of Article 42 should be consulted where an English translation retains older cross-references.

Will a Judgment Actually Result in Payment?

A judgment confirms rights; it does not create assets. Recovery may depend on bank deposits, receivables, real estate, shares and other property actually owned by the debtor. Existing mortgages, security interests, prior attachments and insolvency proceedings can affect the amount available to unsecured creditors.

We assess the claim value against court and enforcement costs, possible security, translations, authentication, foreign legal assistance and time. Asset inquiries must use lawful sources and available procedures; no lawyer can guarantee discovery of every account or offshore holding. The company's directors' personal assets cannot automatically be taken for a corporate debt.

If the debtor has no recoverable assets in Taiwan, obtaining a Taiwan judgment may not be commercially worthwhile. Assets abroad require assessment under the destination jurisdiction's law. Early settlement or properly supported preservation may sometimes be more valuable than pursuing a judgment in isolation.

How FDLAW Assists International Clients

We provide English-language consultation, contract and evidence assessment, Taiwan demand letters, commercial litigation, provisional attachment applications and proceedings concerning recognition and enforcement. We explain the available route, required documents, practical risks and proposed scope before an engagement is agreed.

Charles Lee, Managing Partner of Fuda Law Firm, holds a PhD in Law from Newcastle University in the United Kingdom and previously served as an associate director in the legal department of Deloitte Taiwan. He communicates directly in English and brings commercial, accounting and financial context to transaction and litigation analysis.

Where foreign proceedings are relevant, we can coordinate Taiwan-law documents and procedural issues with appropriately qualified overseas counsel. We do not claim foreign bar qualifications, overseas offices or a guaranteed global collection network. Client identities and confidential ongoing matters are not disclosed here.

For broader corporate disputes, see our Taiwan commercial law services. For transaction planning, see English contract review and drafting. The Chinese cross-border debt recovery service page explains the corresponding Taiwan-law framework.

Frequently Asked Questions

Can we sue without a Taiwan office?

Potentially, yes. We must establish the company's legal existence, capacity, representation and the court's jurisdiction. Cost-security rules and any applicable mainland-specific provisions also need to be considered. A Taiwan branch is not a universal precondition.

Can we claim unpaid invoices without a signed master agreement?

Possibly. Purchase orders, order acceptance, delivery and payment records may establish the transaction under the applicable law. An invoice alone is not conclusive proof of every contractual term or the absence of defenses.

Can Taiwan assets be frozen before judgment?

Provisional attachment may be available where jurisdiction and statutory requirements are met. Supporting evidence, security, timing and the appropriate subsequent proceedings must be addressed. Filing an application does not guarantee that assets will be located or attached.

Can a US, UK or mainland Chinese judgment be used directly to seize assets?

Not merely by presenting the judgment. An ordinary foreign judgment requires the Article 402 and Article 4-1 route; a mainland civil decision follows Article 74. Finality, procedure and documents must be checked before Taiwan execution is pursued.

What if the debtor has no assets?

A valid claim may still have little immediate recovery value. Assess insolvency, security, lawful asset information, available settlement and the cost of proceedings. Any separate claim against another entity or individual needs its own legal and evidential basis.

Discuss Your Taiwan Debt Recovery Matter

For an initial assessment, provide your country of incorporation, the Taiwanese debtor's full name, amount and currency owed, contract and payment terms, current proceedings, known Taiwan assets and urgent deadlines. Begin with a concise summary; sensitive documents can follow through an agreed channel after conflict and engagement checks.

We will assess the evidence, procedural options and practical recovery prospects before discussing scope and fees. This page provides general information, not a guarantee of recovery or a substitute for advice on your documents.

Contact Fuda Law Firm LINE Contact Call +886-2-7709-3611

info@fdlaw.com.tw · LINE: @fdlaw · Taipei, Taiwan

Taiwan Legal Sources

Legal framework checked on 31 October 2026 against the official laws linked above. The Chinese statutory text controls where an English translation differs. Applicable law, current court practice and document requirements must be checked for the particular transaction.