Business entities in Taiwan

Business entities in Taiwan

    Limited companies

    Taiwan business structure options and setup requirements

  • The most popular vehicle for doing business in Taiwan is the limited company;
  • The “limited” in the entity name refers to the company’s limited liability, which means that claims against the company are limited to just the company’s assets, rather than those of its owners. This limitation on liability arises by virtue of the company’s status as a separate legal entity from its shareholders. This is also how LLCs operate in other jurisdictions;
  • One shareholder and one director, who may be of any nationality and residence, can set up a private company in Taiwan in just three weeks;
  • The minimum paid up share capital of Taiwanese private companies is US$1, but for a public company a significantly higher threshold of TW$1,000,000 must be reached;
  • Foreign-owned companies in Taiwan may operate in any sector, meaning that this vehicle is extremely flexible in what it may be used for. Since it is a distinct legal person from its owners, it is not restricted to the business activities of its parent company (unlike a branch);
  • Taiwanese company law does not require a registered agent or company secretary, although a local must be appointed to submit the incorporation package. Healy Consultants provides this service to our Clients as part of our company setup services.
  • Best uses:
    General purpose
    – Setting up an LLC in Taiwan is the best option for most foreign investors due to its flexibility and low administrative requirements. Multi-national companies favour the LLC when establishing a subsidiary of their foreign company in Taiwan. A public limited company is better if there are expected to be a large number of investors or if greater liquidity of shares is required, but the standard LLC is perfect for most entrepreneurial ventures and international expansions.

    Branch of a foreign corporation

  • Foreign companies may establish a branch office in Taiwan to conduct business, provided that they obtain a certificate of recognition and successfully complete the procedures for branch office setup;
  • Unlike a company, the branch does not have its own legal personality. Instead, it is merely an extension of the foreign company establishing it. Consequently, the parent company is responsible for any liabilities incurred by its Taiwanese operation;
  • Foreign businesses must appoint a local agent and a branch manager in order to register a branch in Taiwan. There is no requirement for these appointments if an LLC is set up.
  • Representative office

  • A representative office can be used by foreign companies to conduct limited, non-commercial activities in Taiwan. These establishments may be used to carry out market research, brand marketing activities and research & development, but they may not generate any revenue of their own;
  • Rep offices require the appointment of a designated local representative with the right to reside in Taiwan.
 LLCBranchRep Office
Total company set up costsUS$13,040US$14,040US$13,490
Subsequent annual costs (excl accounting and tax fee)US$0US$0US$2,300
How long to set the company up?3 weeks7 weeks5 weeks
How long to open company bank account?3 weeks3 weeks3 weeks
Issued share capital requiredNoNoNo
Types of business permittedNo restrictionNo restrictionOnly research
Allowed to sign sales contracts with Taiwan ClientsYesYesNo
Allowed to invoice Taiwan ClientsYesYesNo
Corporate tax payable in Taiwan17%17%None
Corporate bank accountHSBC or SCBHSBC or SCBHSBC or SCB
Can rent office premises in TaiwanYesYesYes
Allowed to import raw materialsYesYesNo
Allowed to export goods?YesYesNo
Can the entity hire expatriate staff in Taiwan?YesYesYes
Do you visit Taiwan for company incorporation?YesYesYes
Resident director required?NoNoNo
Resident shareholder required?NoNoNo
Minimum number of directors100
Minimum number of shareholders100
Taiwan resident company secretaryNoNoNo
Tax registration certificate requiredYesYesNo
Individual shareholders allowedYesNoNo
Corporate shareholders allowedYesYesYes
Corporate director(s) allowedYesYesYes
Public register of shareholders and directorsYesNoNo
Taiwan employment visa feesUS$3,850US$3,850US$3,850
How long to get work permit approved3 months3 months3 months
Statutory audit requiredYesYesNo
Annual tax return to be submittedYesYesNo
Access to Taiwan double tax treatiesYesNoNo
Estimate of engagement costsUS$US$US$
Healy Consultants engagement fees5,8509,5459,545
Physical shared office fees950950950
Government fees454545
Corporate bank account opening2,9502,9502,950
Estimate of total outgoings in Year 113,04014,04013,490
Draft invoice

Contact us

For additional information on our business setup services in Taiwan, please email us at Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi
visit-taiwan bankoftaiwan immigration mofa mof moea