Limited Company Registration in Taiwan - Business Starting & Setup

Want to set up a firm in Taiwan? We can assist you in starting a business or in buying a shelf company in Taiwan with a full package of necessary documents, legal advice and follow-up support. Incorporation of a firm in Taiwan includes provision of a registered office (for at least 1 year in any of our service plans), an apostilled set of constitutional documents, secretarial services and assistance with compliance fee and pre-approval for opening an account in banks of Taiwan. The total price of company formation in Taiwan includes all necessary fees and charges for the first year of operation, as well as full one-year nominee service (package Optimum).

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Service packages «Taiwan-Company Limited by Shares» Service packages «Taiwan-Limited Company» Legislation Tax System
Service packages
Express
Standard
Optimum
Company registration
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Legal address per year
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Secretarial services for the first year
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Fees and duties for the first year
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Apostilled bound set of incorporation documents
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Compliance fee
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Nominee service per year
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Bank Account Pre-approval
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Price
8 150 USD

8 150 USD

8 650 USD

Your Consultant
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Corporate information

Legal System

Taiwan is a civil law country with some elements of common law. Meanwhile, sense of justice and law culture of the country are based on Confucianism.

Today’s legal system of Taiwan inherited legal system of mainland China before 1949. Almost all Guomindang laws, which ceased to be in force on mainland China after establishment of PRC, continued to be valid on the island. Since 1949 Guomindan legislation was modified according to the needs of accelerated capitalist development of Taiwan.

Since 1980s democratization of Taiwan legal system took place. Alongside liberalization of political life, repeal of military law (1987), draconian criminal laws which were aimed to fight with communist acitivites became invalid.

The main sources of law are legislative acts and other regulatory acts with Constitution of 1947 at the head. ROC law is well systematized. All the acts can be divided into several groups: constitutional, civil, criminal, criminally-remedial, administrative (including labor, financial and land law).

Types of Entity

According ROC law there are following types of business entities in Taiwan:

  • Unlimited Company;
  • Limited Company;
  • Company Limited by Shares;
  • Unlimited Company with Limited Liability Shareholders;
  • Partnership;
  • Sole Proprietorship;
  • Representative Office;
  • Foreign Branch.

Unlimited companies are registered more rarely than other types of business entities. Foreign investors usually choose limited company, company limited by shares, foreign branch or representative office.

Company vs. Partnership/Sole Proprietorship

Requirements
Company
Partnership/Sole Proprietorship
Minimum capital requirement
No minimum requirement*, but the capital still needs to be examined and certified by a local CPA that it covers at least the incorporation cost
Not required
Extent of liability
Liable to the extent of capital contribution to the company
Liable for any liabilities arising from the business operation
Qualification of being a juristic person
Qualified as a juristic person
Not qualified as a juristic person
Requirement for accounting books
Compulsory
Not compulsorily required

*If the business entity engages in activities that require a special permit or approval, the authorities may set a higher capital requirement.

Company vs. Foreign Branch vs. Representative Office

Requirements
Company (Company Limited by Shares/Limited Company )
Foreign Branch
Representative Office
Permitted activities
general trading, sales and manufacturing not requiring a special permit or approval
general trading, sales and manufacturing not requiring a special permit or approval
legal acts and liaison activities
Income Tax (T)
income less than 120.000 tax=0; income more than 120.000 TWD, but less than 181.818 TWD, tax=(income -120.000)*1/2; income more than 181.818 TWD, T=17%
income less than 120.000, tax=0; income more than 120.000 TWD, but less than 181.818 TWD, tax=(income -120.000)*1/2; income more than 181.818 TWD, T=17%
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Profit remittance tax
20% + 10% surtax on undistributed profits
none
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Tax incentives under the Statute for Industrial Innovation
applicable
not applicable
not applicable
Extent of the liability
liable to the extent of their capital contribution to the company
foreign head office is liable for any liabilities unsettled by the branch
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Shareholders
at least one individual or corporate shareholder (in case of company limited by shares: one corporate shareholder or two individual shareholders); all shareholders may be foreign nationals residing outside of Taiwan
not required to have shareholders but required to register a responsible person
not required
Directors
1-3 directors (in case of company limited by shares: at least 3 directors)
not required
not required
Minimum capital requirement
not required*, but the capital still needs to be examined and certified by a local CPA and covers at least the incorporation cost
not required*, but the capital still needs to be examined and certified by a local CPA and covers at least the incorporation cost
not required
Keeping of accounting books and records
required
required
required

* If the business entity engages in activities that require a special permit or approval, the authorities may set a higher capital requirement.

Registration

Registration of Limited Company in Taiwan

There are several steps of registration of a limited company in Taiwan:

1. Apply for search and reservation of company name and business scope (please provide 1 to 5 company names in Chinese in their order of priority and proposed business scope).

2. Apply for Foreign Investment approval.

Required documents (a Chinese translation of these documents shall be attached):

  • Application Form;
  • the originally approved application form for Reservation of Company Name and Business Scope;
  • Confirmed roster of shareholders and capital amount;
  • Power of Attorney authorizing a Juristic Person Stockholder as the Representative of a corporate investor(if needed);
  • Certificate of Incorporation;
  • Power of Attorney from an investor appointing and authorizing a local agent to deal with the application process to obtain government approval of foreign investment;
  • a copy of passport of corporate representative or individual investor.

3. Apply for Examination of Investment Capital.

Required documents:

  • Application Form;
  • Letter of Approval of foreign investment issued by the Investment Commission;
  • a copy of the bank's Inward Remittance Advice;
  • a copy of the bank’s Foreign Exchange Memorandum;
  • a copy of bank account passbook).

4. Apply for company registration (a pre-approval is required before applying for company registration if the company intends to conduct special business which is subject to additional requirements and regulations ruled by the competent authority).

Required documents:

  • Application Form;
  • Articles of Incorporation;
  • Original consent letter signed by all shareholder(s) consenting to the approval of the Articles of Incorporation;
  • Consent letter from director consenting to act in such capacity;
  • Power of attorney for appointing individuals as the corporate shareholders' representatives (if needed);
  • ID Documents required from incorporator(s);
  • The original consent letter from the owner of the building to agree the use of the building as the registered address of the branch or the signed leasing contract and the photocopy of the latest property tax statement;

A CPA's report for verifying the paid-in capital and related supporting documents.

5. Apply for business registration.

6. Apply for factory registration (this is not applicable to a non-manufacturing business).

7. Apply for registration of importer/exporter (for trading business only).

Company Name

The name of a foreign company should be translated into Chinese, contain type of business entity and nationality. Companies cannot use identical names. Company name should not mislead people, contain words associated with state agencies or social organizations, have an implication of offending against public order or good customs.

Local Registered Office

Company should have a local registered office. Articles of Incorporation must be kept in the office. In case of violation a fine of not less than TWD 10 000 and not more than TWD 50 000 shall be imposed.

Seal

To seal all registration documents and acts company should get a set of seals, including a seal with a company name, a seal with a name of a chairman of board of directors. Each seal costs TWD 450 - 1000 depending on a quantity of used material.

Redomicile

Company cannot be redomiciled in Taiwan.

Company structure

Directors

Limited Company should have at least one director, but not more than three directors. Directors are elected from shareholders (corporate or individual shareholder). If there are several directors, one of them represents a company externally. All directors can be foreign nationals residing outside of Taiwan.

Board of Directors

There are no requirements for board of directors of limited company.

Secretary

Secretary is not required. However, company should have at least one managing director who should be a resident of Taiwan.

Shareholders

Limited Company shall be incorporated by at least one shareholder (individual or corporate). Shareholders should unanimously adopt the Articles of Incorporation, copy of which must be kept by every shareholder.

Beneficiary

The information on beneficiary is not disclosed.

Shares and Share Capital

Minimum capital requirement was canceled by Ministry of Economy. But the capital still needs to be examined and certified by a local CPA and covers at least the incorporation cost.

Registered capital shall be paid in full by all shareholders without installments and use of external sources.

Public Access to Information

The following particulars of company registration shall be made open to the public by the competent authority:

  • The name of the company;
  • The scope of business of the company;
  • The location of the company;
  • The shareholder(s) executing the business operations or representing the company;
  • The name of directors and supervisors and their respective shareholdings in the company;
  • The name of the manager;
  • The amount of authorized capital stock or of the paid-in capital;
  • The Articles of Incorporation of the company.

Any person may apply to the competent authority for a charged access to the above information.

Core Services

The total amount of core services include incorporation services, legal services and delivery of documents by courier mail

— Incorporation

Price8 150 USD

including incorporation tax, state registry fee, including Compliance fee

— Corporate legal services

Price5 000 USD

including registered address and registered agent, NOT including Compliance fee

—Delivery of documents by courier mail

Price150 USD

DHL or TNT, at cost of a Courier Service

— Apostilled set of Statutory documents

Price500 USD

Basic set of documents

Business Registration Card / 公司登记申请书

Business Registration Card

Articles of Incorporation / 公司章程

Articles of Incorporation

Foreign Investment Approval Letter / 经济部投资审议委员会函

Foreign Investment Approval Letter

Letter for Certificate of Incorporation / 公司登记证书(函)

Compare Jurisdictions

    Nominee Director

    Paid-up “nominee director” set includes the following documents

    Nominee Shareholder

    Paid-up “nominee shareholder” set includes the following documents

    Compliance fee

    Compliance fee is payable in the cases of: renewal of a company, liquidation of a company, transfer out of a company, issue of a power of attorney to a new attorney, change of director / shareholder / BO (except the change to a nominee director / shareholder)

    Basic

    Price250 USD

    simple company structure with only 1 physical person

    For legal entity in structure under GSL administration

    Price50 USD

    additional compliance fee for legal entity in structure under GSL administration (per 1 entity)

    For legal entity in structure not under GSL administration

    Price100 USD

    additional compliance fee for legal entity in structure NOT under GSL administration (per 1 entity)

    For client with high risk Status

    Price350 USD

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