Its main objective is to serve as a cultural, education, economic and informational exchanges organization between Taiwan and the overseas Taiwanese and Chinese descent communities.

Its remit is not limited to expatriates from Taiwan, but includes all ethnic Taiwanese and Chinese living in a foreign country who "identify with the Republic of China (ROC)".

The English title of the council was changed from "Overseas Chinese Affairs Commission" to "Overseas Compatriot Affairs Commission" in 2006, officially to "avoid being confused as a governmental body of the People's Republic of China", under the desinicization policies of independence-leaning President Chen Shui-bian of the Democratic Progressive Party.

However, its English acronym OCAC and Chinese name remained the same, to reduce the expense for its official title change.

However, in November 2012 there was a controversy when it was discovered that the OCAC used simplified Chinese characters in some of its teaching materials.