Starting a business in Taiwan offers exciting opportunities for both local entrepreneurs and foreign investors. With its strong economy, strategic location and supportive business policies, Taiwan is an attractive market for companies looking to expand or launch new ventures. The registration process involves several legal and administrative steps.
This guide provides an overview of the process of registering a company in Taiwan, including the pre-and post-registration compliance requirements.
Key takeaways
- Selecting the appropriate business structure is crucial for company registration in Taiwan. Options are Limited Liability Companies (LLCs), Companies Limited by Shares (CLS), branch offices and representative offices.
- The company name must be in Chinese characters and cannot conflict with existing trademarks or registered names.
- Companies must have a physical, commercial or mixed-use address for legal notices and official communications.
- The Ministry of Economic Affairs (MOEA) oversees the company registration process in Taiwan.
- Businesses must register for corporate income tax and VAT with the National Taxation Bureau.
Pre-company registration
Select a suitable business structure
The first step of the company registration process is to choose a business structure. Taiwan offers several types of entities, each with its own advantages and requirements. The choice of business structure will depend on factors such as the nature of the business, tax obligations and liability preferences.
The business structures in Taiwan include:
- Limited Liability Company (LLC)
- Company Limited by Shares (CLS)
- Branch Office
- Representative Office
Choose a company name
Selecting a unique and appropriate name for the company is a crucial step. The name must be in Chinese characters and not conflict with existing trademarks or other registered company names. It is recommended that several options be prepared and submitted for pre-approval to the Administration of Commerce, Ministry of Economic Affairs (MOEA), during the registration process.
Apply for foreign investment approval (for foreign-owned companies)
Foreign investors must obtain approval from the Investment Commission of the MOEA before proceeding. This involves submitting an investment application, business plan, and supporting documents. The approval process typically takes two to four weeks.
Open a preparatory corporate bank account
A preparatory bank account must be opened in Taiwan to receive the initial investment capital. Foreign-owned companies may need additional documentation, and some banks require a local signatory.
Examination of investment capital
Once the capital is injected into the preparatory account, the funds must be verified by a certified public accountant (CPA) to ensure compliance with Taiwan’s foreign investment regulations. This verification is required before proceeding with company registration.
Appoint shareholders and directors
Every company in Taiwan must have at least one shareholder, who can be either an individual or a corporate entity and can be a Taiwanese citizen or a foreigner.
The number of directors will depend on the chosen company structure; for example, an LLC requires one director of any nationality, while a CLS requires at least three directors.
Select a registered address
A company in Taiwan is required to have a registered business address for legal notices and official communications, which must be a physical location rather than a PO Box. This address must be in a commercial or mixed-use commercial-residential building.
Decide on registered capital
Although there is no statutory minimum capital requirement for most businesses, it is advisable to set a capital amount reflecting the business operations’ scale and nature.
Registration with the MOEA
After investment capital verification (if applicable), submit the company registration application to the MOEA. This includes providing company details, shareholder and director information, and the company’s articles of incorporation. Once approved, the company will receive its approval letter from the Ministry of Economic Affairs and establishment registration form.
Applicants must submit their registration application to the MOEA along with the required documents, including the company name, articles of incorporation, proof of capital and details of directors and shareholders. The registration process is generally completed within 10-15 days, though additional time may be needed.
Businesses receive official certificates upon successful company registration in Taiwan, including the approval letter from the Ministry of Economic Affairs (MOEA) and establishment registration form. These documents are essential for various post-registration activities, such as opening a corporate bank account and applying for necessary permits and licences.
Post-company registration
Convert the preparatory account into an official corporate bank account
After completing company registration, the preparatory account is converted into an official corporate bank account, which the company will use for business transactions.
Apply for tax registration
Register with the National Taxation Bureau to obtain a unified business number (UBN) and a tax ID. Depending on the business activities, the company may also need to register for value-added tax (VAT) and other applicable taxes.
VAT in Taiwan applies to the sale of goods and services, as well as imported goods, with a standard rate of 5%. All resident companies providing taxable goods or services must register for VAT, regardless of annual turnover. Businesses are required to file VAT returns every two months, with payments due by the 15th day following the end of the filing period.
Reserve the English company name
Once the company is officially registered, an English name can be reserved for branding and international business purposes.
Register as an exporter/importer (if applicable)
If the company intends to engage in import or export activities, it must register with Taiwan’s Customs Authority and obtain the necessary permits to facilitate cross-border trade.
Register for labour and social security (if hiring employees)
If your company plans to hire employees, it must register with the Bureau of Labour Insurance for labour insurance, health insurance, and pension contributions, ensuring compliance with Taiwan’s employment regulations.
Obtain business registration and commencing operations
Once all registrations and approvals are completed, the company can begin operations. Ongoing compliance, including tax filings, bookkeeping, and corporate governance, is required to maintain good standing with the authorities.
Get permits and business licenses
Securing the necessary permits and business licences is crucial for the specific industries in which the company operates. Sectors such as food and beverage, healthcare, construction and financial services are subject to strict regulatory oversight and require specialised licences to operate legally.
For instance, financial institutions must obtain appropriate licences from the Financial Supervisory Commission to conduct activities like deposit-taking, foreign exchange services or investment consulting.
Secure visas and work permits
Foreign entrepreneurs or investors must apply for visas and work permits to operate a business. Taiwan offers specific visa categories designed to facilitate the entry and residence of foreign business professionals.
Entrepreneur Visa
Taiwan’s Entrepreneur Visa is for foreign nationals planning to start innovative businesses. It offers an initial residency period to help entrepreneurs develop their ventures.
Eligibility includes:
- A minimum of TWD 2 million in venture capital or international fundraising
- Relevant patents or professional skills certifications
- Approval to reside in recognised innovation parks or incubators
Investment Visa
The Investor Visa provides residency for foreign investors, their partners, and dependent family members. A minimum investment of USD 200,000 qualifies for two visa applications. For every additional USD 500,000 invested, one more visa can be granted, up to seven applicants.
Work permits
To hire foreign employees, companies must register with Taiwan’s Workforce Development Agency (WDA) and apply for work permits through the Ministry of Labour. This process takes 10 to 15 business days.
Once approved, employees can apply for a work visa, valid for three months to one year. Upon arrival, they must obtain an Alien Resident Certificate (ARC) within 15 days. The ARC, issued by the National Immigration Agency (NIA), is valid for one year. It can be renewed annually, with no specific limit on the number of renewals if the employment conditions are met.
Conclusion
Successfully registering a company in Taiwan is just the beginning of establishing a business in the region. To ensure smooth operations and long-term compliance, businesses must complete key post-registration steps, including obtaining necessary permits and understanding tax obligations. While the process involves various legal and administrative requirements, proper planning and adherence to regulations can help businesses set a strong foundation for growth. Seeking expert guidance throughout this process can help businesses avoid common pitfalls, simplify procedures and ensure compliance with local regulations.
How Acclime can help with company formation
Acclime offers expert guidance and support for company formation in Taiwan, helping businesses choose the right structure, manage legal documentation and meet regulatory requirements. With tailored solutions and ongoing compliance support, Acclime makes it easier for entrepreneurs and investors to confidently establish and grow their businesses.
