Setting Up a Company in Taiwan

What to Know in Setting Up a Company in Taiwan

Whether your move to Taiwan is driven by a project or a desire for new experiences with friends or family, you might find yourself considering launching a business there but  wondering how to do business in taiwan? 

It is important to understand the process of setting up companies in Taiwan first if one wants to realize such benefits. You might be amazed that actually you do not have to move within the territory of Taiwan in order to start business. It is now possible to incorporate a company even without going into physical presence as a result of recent reforms.

Consider engaging an agency or a local representative in Taiwan to guide you on how to register. This method may expedite set up and compliance with regulations imposed in a particular region.

Steps To Create A Limited Company In Taiwan

In order to start a company in Taiwan, there are various kinds of business structures available, depending on your choice, like a limited company, branch, and a representative office among others. The most common options here are branch and Limited Company.

1. Request a Company Name Search and Reservation

It is absolutely necessary for a business to undertake this vital stage of reserving their company name, in order to protect their business name. The companies may seek for name reservations from the internet or via postal services direct to the relevant offices. However, it is important that the chosen company name must be given in Chinese language.

2. Request Approval For Foreign Investment

After acquiring the approval of your company name, you must submit the necessary papers to MOEA for formal endorsement and designation as a Taiwanese company or branch. Forming a firm requires developing a comprehensive business plan which contains proposed activities, estimated revenue, expected revenues and their sources. This normally takes two weeks up to a month depending on officials’ discretions. If any additional document is needed then they should be sent. Read Doing Business in Taiwan: Why It’s Attractive

3. Preparatory Bank Account Opening and Capital Injection

The third stage should include identification of a local bank to open an initial account and channel your capital in your Taiwan company or subsidiary. Before deciding on a bank, consider these aspects:

  • Account opening requirements: Such could entail situations like having a local director, the physical location of the company, minimum capital, and initial deposit.
  • e-banking availability in your preferred language or English
  • Transaction fees and charges

The establishment of the preparatory bank account takes up to 1 month subject to the banks and the applicants profile.

It has specific requirements in regards to the nature of this capital that should be paid by a bank account which is owned by a shareholder abroad, that is NTD is not allowed, with foreign currency, for instance, USD or EUR. A local CPA must then scrutinize the capital injection and it is then submitted to MOEA. This capitalization shall be approximately one to two weeks with a CPA audit.

4. Request A Business Registration

After the capital injection comes the stage where one applies for business registration at the Department of Commerce, MOEA. Usually, this is completed within two weeks. MOEA’s approval is a vital requisite for setting up a Taiwan company or branch. The GUI number and the relevant registration details would be provided in the approval letter along with the company/branch registration form.

5. Tax Registration

The 5th step involves commencing the tax registration process that normally takes about 2 to 3 weeks. After that, you will be sent a letter of approval and also notified to attend a tax interview. For the interview, you’ll need to schedule an appointment with the tax officer and prepare the following documents:

  • GUI stamp
  • Letter of approval for the company registration and registration form (copy)
  • Offices rental agreement copy and property tax receipt
  • Company stamps or chops

The duration of this type of interview is approximately 20 minutes, and it requires the physical presence of the company’s representative. However, the tax office may accept the power of attorney in case if the representative has no time to participate in the process.

6. Transfer to Official Bank Account

Finally, the preparatory bank account can be transferred to the official account. Before you put forward the details of the company bank account, all the registration documents to the bank have to be prepared. The additional documents will be required for know-your-customer and anti-money laundering process as below:

  • Shareholder structure
  • Direct and indirect holding entities director and shareholder list
  • Copy of passports for ultimate beneficial owners

It is upon creating a formal bank account that you may begin to utilize the capital funding for the operational activities of the business. Finally, you are also advised to go to the bank and install the e-banking software so you can conduct an online transaction over the internet later on.

What to Know in Setting Up a Company in Taiwan

Does Taiwan Permit Foreign Investors?

The country is very open to inward foreign direct investment inflows. Actually, because of Taiwan’s openness to outsiders and trade, many companies (especially technology companies) locate their Asian operations there.

In general, companies in Taiwan can be fully owned by foreign investors. Foreign and local shareholders have equal rights and obligations. The director does not need to be present in Taiwan and therefore the business could be operated abroad.

Going to start a business in Taiwan ready? Fastlane is your trusted business partner for convenient and quick foreign companies’ incorporation. It would be easy and time-saving for you to enter the Taiwan market. Get started with Fastlane today!