1. What are the permitted corporate types if I want to set up a business in Taiwan?
And How to choose the appropriate one?
The most common corporate types in Taiwan are as follows:
1. Company Limited by Shares (General/ Close Company)
2. Limited Company
3. Branch Office
4. Representative Office
As to setting up which type of company, it is a very subjective issue which requires consideration of many factors, including business model, equity allocation, foreign investors, foreigner’s work permit and resident certificate, capital, taxation and regulations.
For example, if you intend to remit all profit earned in Taiwan to the overseas head office, setting up a branch office would be a good choice for you. In compliance with income tax act, as set forth you can have 21% tax exemption.
Or if you do not intend to generate income in Taiwan, you can consider setting up a representative office, which is the simplest corporate type. A representative office is only permitted to carry out liaison activities. Since income generating activities is not permitted, there will be no income tax.
2. Is there a minimum capital requirement to set up a business in Taiwan?
Generally, there is no minimum capital requirement. However, in the case of the specially approved business or for obtaining work permit/ resident certificate, there is a minimum capital requirement.
For those who intend to obtain work permit/ resident certificate by investment, if you are the only shareholder, the minimum capital requires is NTD 500,000; if you are partner with Taiwanese, the minimum capital requires is one-third of NTD 500,000 and the company annual revenue must exceed NTD 3,000,000.
3. Do I need a physical office for registering a company?
You may share an office with other companies or set up an office in the business center.
4. Do I need to open a bank account in Taiwan?
After approval by Investment Commission (or Ministry of Economic Affairs), foreign investors must open a temporary bank account, and remit the capital. In Taiwan, you are required to open a bank account at the counter in person. After your company is established, you can apply at the counter for conversion to a formal current deposit account.
5. How long does it take to set up a business in Taiwan?
From the pre-application stage to the successful establishment, it takes about 8-12 weeks on average to set up a company. (excluding investment from Mainland China)
If you have any questions on setting up a business in Taiwan, we’re here to help!
