A securities firm established under these Standards may apply for the establishment of a branch unit upon the completion of 1 year operation. Such restriction does not apply, however, to the establishment of a branch unit as a result of merger or transfer.

A securities firm applying for the establishment of branch units shall meet all of the following requirements:
1. The applicant's most recent CPA audited and attested financial report indicates that the net worth per share exceeds its par value and its financial condition complies with the standards stipulated under Article 49 of the Act; however, the requirement regarding the net worth per share exceeds par value shall not apply to a securities firm which increases branch units owing to merger, or acquisition other securities firms.
2. The applicant has not been issued a warning by this FSC under Article 66, subparagraph 1 of the Act within the most recent 3 months.
3. The applicant has not been sanctioned by the FSC's order under Article 66, subparagraph 2 of the Act to dismiss its directors, supervisors or managers within the most recent 6 months or ordered under Article 100, paragraph 1, subparagraph 2 of the Futures Trading Act to replace its responsible person or other related personnel.
4. The applicant's operations have not been suspended by the FSC within the most recent year.
5. The applicant's business licenses have not been revoked by the FSC within the most recent 2 years.
6. The applicant has not been restricted or suspended to trade under the by-laws of the TWSE, TPEx, or TAIFEX within the most recent 1 year.
7. The Capital Sufficiency Ratio of the securities firm is not lower than 150 percent.
If a securities firm does not meet a requirement set forth in any of subparagraphs 2 to 6 of the preceding paragraph, but has shown concrete improvement in the circumstances, and the FSC has recognized the improvement, the securities firm may be exempted from the relevant requirement.
For securities firms that increase branch units owing to merger or acquisition of the entire business, assets or facilities of other securities firms under the approval of the FSC, the requirements of subparagraphs 2, 3, and 7 of paragraph 1 shall not apply.

For each branch unit that a securities firm establishes, the paid-in capital of the firm shall increase by NT$30 million.

The standards of the business floor and facilities required under Article 6 shall apply mutatis mutandis to branch units of securities firms.
Prior to filing an application with the FSC for approval to engage in brokerage business in the stock exchange by a branch unit of a securities firm, the consent of computer linkage from the securities central depository enterprise and the stock exchange shall be received.
Prior to filing an application with the FSC for approval to engage in brokerage business in the over-the-counter market by a securities branch unit of a securities firm, the consent of the computer linkage for its securities trading information from the TPEx shall be received.

In filing an application with the FSC for the permit to establish branch units, a securities firm shall submit all of the following documentation:
1.The application for establishment of branch units (Annex 8).
2.Articles of incorporation or equivalent documentation.
3.A business plan which specifies: the principles of business operation by branch units; the division of internal organization; the employment of personnel; the description of facilities; and its financial projection for the next 3 years.
4.The minutes of the Board of directors.
5.The system of internal control required under Article 11 (including that of the branch units).
6.The documentation affirming the availability to the computer linkage as required under Article 22, paragraph 2 or 3.
7.Other documents that the FSC may so require.

The incorporation registration of a securities branch unit shall be completed within 6 months from the date of the permit issued by the FSC and all of the following documentation shall be submitted to the FSC to apply for a securities business operation license of the said branch unit:
1.The application for establishment of branch unit (Annex 9).
2.A photocopy of the branch unit establishment registration certificate.
3.The list of managerial and associated persons with certification of their qualifications.
4.The documentation certifying the compliance with Article 6.
5.The documentation certifying the deposit of operation bond.
6.The contract affirming the availability to utilize the computer linkage facilities under Article 22, paragraph 2 or 3.
7.Other documents that the FSC may so require.
The permit for the establishment of a branch unit shall be revoked if the applicant fails to apply for the license within the duration prescribed in the preceding paragraph. The duration prescribed in the preceding paragraph may be extended, however, should the said securities firm apply to the FSC, with just cause, prior to the expiration of the duration. Such an extension shall not be more than 6 months and may be applied only once.

The provisions of Article 19 through 24 shall apply mutatis mutandis to those applications by financial institutions which concurrently operate securities business for establishment of offices to concurrently operate securities business. The provisions of Articles 20, Article 23, subparagraphs 1, 2, 4 to 7, and Article 24, paragraph 1, subparagraphs 1 to 3 and 5 to 7 and paragraph 2 of these Standards shall be applied mutatis mutandis to a financial institution which only applies to conduct proprietary trade in government bonds at its branch units. The said financial institution shall assign a full time associated person to deal with such business.