Business entities in Taiwan in 2024

Foreigners willing to do business in Taiwan usually register a local limited liability company. There are however alternative corporate structures available in Taiwan, including the possibility for foreign companies to register a branch or a representative office. Please find below more information on the different types of corporate structures available to do business in Taiwan.

Doing business in Taiwan through a local entity

• The Taiwan limited liability company (limited company)

  

  • The Taiwan limited liability company (LLC) can be registered with only i) one shareholder and ii) one director, who can both be non-resident foreigners. While there is no minimum paid-up capital requirement, Healy Consultants recommends to allocate a minimum of US$3,300 to optimize the probability of timely company registration approval by the Ministry of Economic Affairs;
  • Before registration of the company, our Client will be required to open a capital account in Taiwan and thereafter inject the paid-up capital. Unfortunately, banks require foreign directors and signatories to travel, before approving capital account opening;
  • Best uses: Setting up an LLC in Taiwan is the best option for most foreign investors due to its flexibility and low administrative requirements. Multinationals favour the LLC when establishing a subsidiary of their foreign company in Taiwan.

• The Taiwan limited partnership (LP)

  • Foreigners can register limited partnerships in Taiwan, which must however include at least two partners, one of them being a general partner personally liable for any debt or tax due by the partnership and who must be a Taiwanese resident. Limited partnerships in Taiwan are not allowed to hire foreigners;
  • The partnership is a tax transparent entity, not subject to corporate income tax but still subject to the preparation and filing of financial statements and requiring all partners to submit a personal income tax return;
  • Best uses: foreigners having a local partner can consider to register a limited partnership in Taiwan. In other cases, Healy Consultants recommends to register instead a limited liability company.

• The Taiwan free zone company

  • Foreigners willing to register export-oriented businesses can register a subsidiary in a special economic zone (SEZ). In addition to requirements applying to a branch, the company will be required to submit a business plan to the SEZ authority;
  • While there is no minimum investment officially required, Healy Consultants recommends our Client to allocate a minimum of US$200,000 to the paid up capital of their Taiwanese free zone company. See also this page for additional information on the tax incentives available in the Taiwan free zones;
  • Best uses: we usually recommend our Clients to seek free zone registration in Taiwan when they expect to make a significant investment and to export a significant percentage (over 75%) of their products overseas.

Doing business in Taiwan with a foreign entity

• The Taiwan branch office

  • Foreign companies may establish a branch office in Taiwan to conduct business. Compared to the registration of a subsidiary, this however requires the appointment of a local agent/branch manager. There is no requirement for these appointments if an LLC is set up;
  • Best uses: We usually recommend our Client to register a branch when they plan to operate in regulated industries such as financial services, banking and finance. Otherwise, registration of a subsidiary (LLC) is more advisable.

• The Taiwan representative office

  • A representative office is allowed to conduct only limited, non-commercial activities in Taiwan. Like a branch, such entity is additionally required to appoint a resident as manager;
  • Best uses: a representative office can be used by foreign companies to carry out market research, brand marketing activities and research & development, but they may not generate any revenue of their own.