How do foreigners set up a company in Taiwan Q&A（2024）
★12 Basic questions★
1. Can foreigners set up a company in Taiwan?
Yes, any foreigner can set up a company in Taiwan, but the establishment process needs to be reviewed by the Investment Commission. The review time expected to be two months to six months.
2. Are there industry restrictions for foreigners to establish companies in Taiwan?
Most industries are allowed, and only a few items restrict foreigners’ operations. The first step of opening a company in Taiwan is to check whether the company name can be used. At this time, the company’s business items must be listed one by one. Industries involving special approval, such as medical equipment, tobacco and alcohol imports, travel agencies, construction, etc., require approval from another department. In addition, some industries require licenses to operate, such as immigration companies, real estate agencies, and drug dealers, etc..
3. Is there a minimum capital limit for opening a company in Taiwan?
No, one dollar can start a company. However, the amount of capital is related to audit by an independent certified public accountant, and each accountant has different standards, so the amount of capital still depends on the standards of each accountant. The amount of capital is publicly available information, and the amount of capital must also consider the company’s external image.
4. How much registered capital does a company need?
There is no capital limit for foreign companies. If you need to apply for a foreign manager’s work permit, the amount of capital should not be less than 500,000 Taiwan dollars, which just meets the threshold for applying for a foreign manager. If you need to increase the amount of capital in the future, you can apply for a capital increase. In addition, the amount of capital should also consider the review attitude of the Investment Commission, and the amount of capital should be sufficient for the company’s operations.
5. Can a foreigner own a sole proprietorship or start a company with people of different nationalities?
Yes. Foreigners can be sole proprietorships or joint ventures with people of different nationalities or Taiwanese. If the amount of capital involves foreign investment, it must be reviewed and approved by the Investment Commission. However, in order to apply for a foreign manager’s work permit, foreign capital must account for more than one-third of the capital.
6. If there is no office, can I register the company?
Yes. You can register in the business center, such as “Taipei Entrepreneur Center”, which have more than ten addresses in Taipei City.
7. How long does it take for foreign investors to start a company in Taiwan?
If all the documents are complete, the entire process will take about 2-6 months.
8. In addition to overseas remittances, are there other ways to contribute capital?
Yes. You can choose the contribute capital method according to your own situation.
A. Invest in Taiwan dollars: If you have employment income in Taiwan, you need to provide Tax Payment Certificate, and the income exceeds the investment capital.
B. Overseas remittance: Remit money from an overseas personal account to the company preparatory office account.
C. Carrying foreign currency: Entry declaration with Investment Commission approval letter.
D. Gift from spouse: Taiwanese spouse applies for gift to the National Taxation Bureau.
9. Should the person in charge of the company go to the bank to open a company account in person?
Yes. Taiwan has implemented the Money Laundering Control Art. Companies need to conduct strict inspections when opening accounts. The time for opening an account is different for each bank, ranging from two hours to two weeks. Before opening an account, you should first inquire and make an appointment with the bank, moreover the person in charge of the company needs to go to the bank to open an account in person , and cannot entrust others to do it.
10. When can the capital be remitted?
The first step is open a company’s preparatory office account. The second step is that after the Investment Commission has passed the review, foreign shareholders can remit capital in proportion to their capital contribution.
11. What is the first step to prepare if I decide to entrust the application?
A. Power of Attorney: (if you are in Taiwan) Notarization by a notary, (if you are overseas) apply at Taipei Economic and Cultural Office.
B. 3-5 Chinese company names and 1 English company name.
C. Select business items.
D. A copy of passport.
12. Investors from Hong Kong, Macao, Vietnam, Indonesia, Thailand, South Asia, need to provide more documents than investors from other countries?
Yes. Only these countries need to provide the following information.
- Proof of education (Describe educational background and provide the highest diploma, if there is no English version, it needs to be translated into Chinese)
- Proof of experience (List the work experience of each period, and provide the recent work certificate or resignation certificate. Experience must be related to investment content)
- Proof of financial resources (The balance of the deposit book exceeds the amount of capital contribution)
★2 tax questions★
1. Will the Individual Income Tax rate for foreigners in Taiwan be higher?
If you live in Taiwan for 183 days in a tax year, the Individual Income Tax rate is the same as that of ordinary Taiwanese (from 5%); If the residence is less than 183 days, the tax rate is 18%.
2. Are there higher tax rates for foreign companies?
No. Taxes for foreign companies established in Taiwan are the same as those for domestic companies.
There are two types of corporate tax in Taiwan. One is “Business Tax” that is declared once every two months, and the Business Tax rate is 5%. The second is “Enterprise Income Tax” declared in May every year, and the Enterprise Income tax is 20% . Tax filing can be submitted to a professional firm for filing.
★6 foreigner manager’s work permit questions★
1. Can foreigners apply for manager’s work permits?
Yes. Newly-established companies whose capital exceeds NT$500,000 and foreign investment for more than one-third can apply for “one” foreign manager work permit. The term of the work permit varies from 1-3 years, and the length of the work permit depends on the Ministry of Labor.
2. Can foreign shareholders hire themselves as managers?
Yes. The foreign person in charge (or foreign shareholder) of a foreign company can hire themselves as the manager or hire someone else (non-shareholder) as the manager.
3. Can I apply for an Alien Resident Certificate after obtaining a manager’s work permit?
Yes. After obtaining the foreign manager’s work permit, you can apply to the Immigration Department for an Alien Resident Certificate. The ARC period is the same as the work permit approval period.
4. Can the term of the manager’s work permit be renewed?
Yes. The extension of the work permit depends on whether the company’s turnover meets the regulations.”If the company has been established for more than one year, the average turnover in Taiwan in the last year or the previous three years has reached NT$3 million or more” can be renewed.
5. Can the family of the foreign manager stay in Taiwan?
Yes. Only spouse and minor children can stay.
6. Will the foreign manager have the opportunity to apply for an APRC after obtaining the ARC?
Yes. Foreigners can apply for an APRC as long as they have obtained a ARC for five consecutive years. People from Hong Kong and Macau who are not investment immigrants can only apply for long-term residence, and cannot apply for permanent residence.
7. Why do foreign entrepreneurs choose us to assist with company startups in Taiwan?
Our team members have Taiwanese and foreign status. For more than ten years, combined with rich experience in the establishment of foreign companies, familiar with the needs and regulations of foreign companies, we are committed to providing one-stop services such as foreign company establishment, office rental, tax accounting, etc. The foreign investment we have undertaken are: Malaysia, Singapore, Hong Kong, Macau, Japan, Korea, Thailand, the United States, the United Kingdom, Egypt, Vietnam, Indonesia, Israel, India, Australia, Iran………
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20. Do we need to deposit some money with the government ?
No. The only thing you need to deposit is capital. Capital can be used after the company is established.
23. An address is required when the company is going to be established. Which address can I rent?
You can rent the address of our business center, our center has been established for more than 10 years.
