A SICE meeting each of the following conditions may apply to establish a branch unit:
1.Has been in operation for at least a full 2 years. Such restriction does not apply, however, to the establishment of a branch unit as a result of merger or transfer.
2.Has net worth per share of not less than par value, as shown in the latest CPA-audited and attested financial report. Such restriction does not apply, however, to the establishment of a new branch unit as a result of merger or transfer.
3.Has not, during the last 3 months, been sanctioned under Article 103, subparagraph 1 of the SITC Act, Article 66, subparagraph 1 of the Securities and Exchange Act, Article 100, paragraph 1, subparagraph 1 of the Futures Trading Act, or on 3 or more occasions been given an official reprimand, or ordered to achieve improvement within a specified period of time, under Article 44 of the Trust Enterprise Act.
4.Has not, during the last half year, been sanctioned under Article 103, subparagraph 2 or 3 of the SITC Act, Article 66, subparagraph 2 of the Securities and Exchange Act, Article 100, paragraph 1, subparagraph 2 of the Futures Trading Act, or Article 44, subparagraph 1 of the Trust Enterprise Act.
5.Has not, during the last year, been sanctioned under Article 103, subparagraph 4 of the SITC Act, Article 66, subparagraph 3 of the Securities and Exchange Act, Article 100, paragraph 1, subparagraph 3 of the Futures Trading Act, or Article 44, subparagraph 2 of the Trust Enterprise Act.
6.Has not, during the last 2 years, been sanctioned under Article 103, subparagraph 5 of the SITC Act, Article 66, subparagraph 4 of the Securities and Exchange Act, Article 100, paragraph 1, subparagraph 4 of the Futures Trading Act, or Article 44, subparagraph 3 of the Trust Enterprise Act.
7.If it has been sanctioned under any of the provisions of subparagraphs 3 to 6 and ordered to achieve improvement, concrete improvement has been achieved.

A SICE intending to establish a branch unit shall apply to the FSC for permission by filling out and submitting an application form, together with the following documents:
1.Articles of incorporation.
2.A business plan, specifying, with respect to the branch unit: operational principles; internal organization and segregation of duties; personnel recruitment and training; general description of premises and facilities; and financial forecasts for the coming year.
3.Minutes of the relevant board of directors meetings, showing the resolution to establish the branch unit.
4.A description of the internal control system for the branch unit.
5.The CPA-audited and certified attested financial report for the most recent period. If at the time of application 6 months have already elapsed since the beginning of the fiscal year, a CPA-audited and attested financial report for the first half-year shall be additionally submitted.
6.A written statement that the application form and its attachments contain no misrepresentations or nondisclosures.

A SICE permitted to establish a branch unit shall, within 6 months from the day the FSC grants permission, complete the establishment registration procedures for the branch unit and apply to the FSC for issuance of a branch unit business license for the branch unit by filling out and submitting an application form, together with the following documents:
1.A photocopy of the establishment registration of the branch unit.
2.A register of qualified managerial officers and associated persons of the branch unit, issued by the SITCA after reviewing their qualifications, together with documentary proof of their qualifications.
3.Written statement(s) that none of the circumstances in Article 68 of the SITC Act exists with respect to any managerial officer or associated person of the branch unit.
4.Written statement(s) that all managerial officers and associated persons of the branch unit are employed as full-time staff.
5.A photocopy of the ownership deed or lease agreement of the place of business of the branch unit, and floor plans and photographs thereof.
6.Written statement(s) that the branch unit has an independent place of business not jointly used by any other enterprise.
7.The CPA-audited and attested financial report for the most recent period. The report is not required, however, if it covers the same period as that covered by the financial report submitted in the application for permission.
8.A written statement that the application form and its attachments contain no misrepresentations or nondisclosures.
The FSC may revoke the permission granted to the SICE for establishment of a branch unit if it fails to apply for issuance of a business license for that branch unit within the period set out in the preceding paragraph. Notwithstanding the foregoing, if there is legitimate reason, an application may be filed with the FSC before expiration of that period for a maximum extension of 6 months, one time only.