For foreign entrepreneurs planning to launch a business in Taiwan, legal procedures and regulations are often the biggest concerns. We have compiled the 15 most frequently asked questions to help you master the core points of setting up a company in Taiwan in just 5 minutes.
Frequently Asked Questions (FAQ)
Q1: Can foreigners start a company in Taiwan?
Yes. Foreigners can establish and fully own companies in Taiwan. While most industries allow foreign investment, the process is subject to review by the Investment Commission (MOEA) and general regulatory compliance.
Q2: Do I need to live in Taiwan to open a company?
No. Many foreign investors complete the entire company formation process remotely by using a notarized Power of Attorney (POA) to authorize a professional representative in Taiwan.
Q3: How long does it take to start a company in Taiwan?
Typically 4 to 8 weeks. The exact timeline depends on the speed of document preparation, government approval processing, and capital injection verification.
Q4: Is there a minimum capital requirement?
Taiwan does not impose a strict minimum capital requirement for most companies. However, the capital amount should be reasonable for intended business operations, and specific thresholds apply if you intend to hire foreign employees or apply for an Entrepreneur Visa.
Q5: Can I open a corporate bank account remotely?
This depends on the bank's policy. Currently, most banks still require the company representative to appear in person for identity verification.
Q6: Can I set up a branch office under a foreign company name?
Yes. Foreign companies can choose to establish a "Branch Office" or a "Representative Office". A branch is an extension of the parent company and does not have a separate legal personality, while a representative office is limited to liaison and market research and cannot engage in revenue-generating activities.
Q7: Can I apply for a residence permit (ARC) after starting a company?
Yes. Foreign investors who meet specific investment thresholds (typically USD 200,000 or more) or serve as company managers can apply for a work permit and an Alien Resident Certificate (ARC).
Q8: Are all industries open to foreigners?
Not all. While Taiwan allows 100% foreign ownership in most sectors, certain industries (such as telecommunications, legal services, or sensitive utilities) may have ownership caps or require special professional licenses.
Q9: Must the capital be remitted from overseas?
Yes. For foreign investment cases, the capital must be remitted from an overseas account, undergo foreign exchange settlement through a bank, and receive "Capital Verification" from the Investment Commission.
Q10: Do I need to hire Taiwanese employees?
There is no legal requirement to do so at the outset. Taiwan law does not mandate the hiring of local employees during the initial setup. However, if the company plans to sponsor a work permit for a foreign professional (including the owner), certain turnover or performance standards must be met.
Q11: What are the main taxes for foreign companies in Taiwan?
Main taxes include Corporate Income Tax, Business Tax (VAT), and Withholding Tax. The Corporate Income Tax rate is currently 20%, and Business Tax (VAT) is typically 5%.
Q12: Must the company name reservation be in Chinese?
Yes. While your brand can use an English name, Taiwan law requires the official registered company name to be in Traditional Chinese.
Q13: What is my tax status—Resident or Non-Resident?
This depends on the number of days you stay in Taiwan. According to tax law, staying 183 days or more in a calendar year makes you a "Resident"; otherwise, you are a "Non-Resident." This directly affects the withholding tax rate on salaries or dividends.
Q14: Do notarized and authenticated documents have an "expiration date"?
Yes. Most Taiwan authorities and banks require document authentication dates to be within one year (some banks require within 6 months). If documents expire, you must restart the notarization and TECO authentication process.
Q15: Is the capital repatriation (exit) process difficult?
Repatriation requires approval from the Investment Commission. Closing a business involves dissolution, liquidation, and tax clearance. Once liquidation is complete, and MOEA approval is granted, remaining funds can be remitted abroad.
Why You Need Professional Legal Assistance
Cross-border company formation involves complex Investment Commission approvals, capital verification, and specialized legal documentation. Working with a professional English-speaking lawyer in Taiwan can reduce communication time by over 50% and ensure your corporate structure is compliant from day one.