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Political parties exert profound and aggrandizing influence on democratic politics. People always say, “Democratic politics is party politics.” In modern democratic system, political parties play important roles in political development. Those are not only consequence of democratic politics but also foundation of the success of democratic politics. Therefore, many countries have set certain guidelines regarding the establishment and activity of political parties to promote the sound development of democratic politics. Since the abolition of Marshall Law on July 15, 1987, in the Republic of China (Taiwan), political parties have been allowed to be established liberally. In 1989, the Department amending the Civil Associations Act, as a response to the development of party politics, regulations were added for political parties to accept the reporting of political parties for approval and registration and counseling requests. It has laid a legal foundation of the political party system. 
On December 6, 2017, the Political Parties Act was announced by the president for implementation. It is consisted of 7 chapters and 46 articles. The purpose of its legislation was to construct an environment for fair competition regarding the establishment of political parties. Ensuring the operations and organization of political parties to be compliant with democratic principles. The basic spirit of the Political Parties Act rests on the respect for the principle of self-discipline concerning the autonomy of political parties. Despite the complete and precise regulations for the establishment, activities, principals, elected personnel of political parties, finances, funds and withdrawal mechanisms were made to govern the operations of political parties.