Starting a business in Taiwan: accessing innovation and excellence in Asia

A limited liability company (LLC) is a separate legal entity in which shareholders' liability is generally limited to their invested capital. There is no statutory minimum capital requirement, although the company must maintain sufficient capital for its proposed operations. In Taiwan, an LLC must have at least one shareholder and one director, who can be of any nationality. Foreign investors can generally wholly own a Taiwan LLC, although certain sectors remain subject to foreign ownership restrictions. Foreign investment approval from the Ministry of Economic Affairs (MOEA) is also typically required before capital can be injected into the company.

Also referred to as a joint-stock company, this structure is typically used for larger enterprises or businesses seeking investment from multiple shareholders. A CLS is a separate legal entity in which shareholders’ liability is generally limited to their invested capital, and shares may generally be transferred more freely than in an LLC structure.

In Taiwan, a CLS must have at least one shareholder, although additional governance requirements may apply depending on whether the company is closely held or publicly listed. It is also generally subject to more formal governance requirements, including the appointment of directors and supervisory functions. There is no mandatory minimum paid-up capital requirement, although certain regulated sectors may impose specific capital thresholds.

A branch office allows a foreign company to operate in Taiwan without incorporating a separate legal entity. It is considered an extension of the parent company, which remains fully liable for the branch's obligations. A branch office is often used for project-based or initial market entry operations and must be registered with the MOEA. While there's no minimum capital requirement, the branch is generally subject to Taiwanese corporate tax (profit-seeking enterprise income tax) on its profits and must appoint a manager who is resident in Taiwan.

A representative office may be established for non-commercial purposes. Its activities are generally limited to market research, promotional activities and coordination with customers or partners. It cannot conduct commercial transactions or generate revenue in Taiwan and is therefore generally not subject to Taiwan profit-seeking enterprise income tax. As a result, it is commonly used by foreign companies exploring the Taiwan market before committing to full incorporation.

A 'free zone company' in Taiwan is not a separate legal entity type, but rather a standard Taiwanese company such as an LLC that is authorised to operate within one of Taiwan's designated free trade zones. Free zone companies may benefit from 100% foreign ownership, customs duty exemptions, modern infrastructure and sector-focused support.

If you're exploring expansion into Taiwan, we can help identify a structure suited to both your immediate requirements and future direction. View our 'at a glance' comparison table outlining key information on different company formation options.

Setting up a business in Taiwan involves a range of costs that vary depending on the entity structure, industry and scale of operations. Companies establishing operations in major business centres such as Taipei or Kaohsiung may also encounter differences in office rental and operating expenses.

• Registration and incorporation fees: Costs associated with company registration with the MOEA and related local authority filings.

• Capitalisation requirements: While Taiwan does not impose a fixed minimum capital requirement for most company types, shareholders must determine an appropriate capital amount for the proposed business activities. In practice, a certified public accountant must verify that the injected capital is sufficient to support the company’s planned first year operations before registration can be finalised. The funds are typically transferred into a preparatory Taiwanese bank account prior to capital verification.

• Foreign investment approval: Foreign investors typically require approval from the Investment Commission before capital can be injected into a Taiwanese entity. Preparing and submitting this application may involve administrative and advisory costs.

• Tax and labour registrations: Companies must register with the tax authorities for corporate income tax and, where applicable, business tax purposes. Employers must also enrol employees in Taiwan's mandatory labour insurance and national health insurance schemes.

• Visa and work permit costs: Foreign directors, managers and employees may require work permits and residence visas. Applications are generally handled by the National Immigration Agency and the Ministry of Labour.

• Office space rental: Commercial rental costs vary significantly depending on location. Taipei’s central districts generally command higher prices, while industrial parks and regional cities may offer more cost-effective alternatives.

• Professional fees: Costs for engaging professional advisors, including legal counsel, company formation specialists, tax advisers, payroll providers and accounting firms.

• Other potential costs: Additional expenses may include document translation into Mandarin Chinese, banking fees, licensing fees for regulated industries and administrative charges associated with government approvals.

At Hawksford, we support businesses starting in Taiwan through a structured step-by-step approach, helping to reduce administrative complexity throughout the incorporation process.

We typically begin with a detailed consultation to understand your business objectives, operational requirements and longer-term strategy. This allows us to identify an appropriate legal structure and location while highlighting potential incentives or innovation hubs such as Hsinchu Science Park.

Based on the consultation, we can prepare a tailored setup strategy covering legal structuring, governance considerations and key regulatory requirements under Taiwanese company law. This stage also considers foreign investment approval and any sector-specific licensing obligations.

We can prepare and review the required incorporation documents, including articles of incorporation, shareholder and director information, foreign investment approval applications and capital verification documentation. We can then coordinate submission to the relevant authorities, including the MOEA.

Following approval of the incorporation documentation, we can handle the required registrations with the relevant authorities, including company registration, corporate income tax and business tax registration, as well as labour insurance and national health insurance registration where applicable. Industry-specific licences or approvals may also be arranged where required.

Where applicable, we can assist with work permit and residence visa applications for foreign directors and employees through the relevant authorities, including the National Immigration Agency.

We can assist with opening a corporate bank account and coordinate with Taiwanese financial institutions to complete capital verification and compliance checks.

Most banks may require in-person appointments for account opening, with local representation often necessary for foreign entities. The process can also involve extensive Mandarin Chinese documentation, making early preparation important.

Beyond incorporation, we can provide ongoing services to help facilitate market entry and operations in Taiwan. This may include support with finding physical office space, accounting and tax compliance, including corporate income tax, business tax registration and filing, statutory financial statement preparation and bookkeeping.

The amount of time required to establish a business in Taiwan can differ based on the structure selected and any regulatory approvals needed. We can help businesses plan ahead with a clearer understanding of the process.

• Chosen legal structure: Incorporating an LLC or CLS generally requires several weeks, while branch or representative office registrations may follow similar timelines depending on the documentation required.

• Industry-specific licensing: Businesses operating in regulated sectors such as financial services, telecommunications or pharmaceuticals may require additional permits and regulatory approvals.

• Foreign investment approval: Most foreign investments require prior approval from the Investment Commission under the Ministry of Economic Affairs before capital can be injected into a Taiwanese entity. While many applications are processed within several weeks, more complex ownership structures or investments involving sensitive industries may require additional review.

• Document translation and authentication: Foreign corporate documents may need to be translated into Mandarin Chinese and, in some cases, notarised or authenticated by Taiwanese overseas offices. The time needed to prepare and verify these documents can affect the overall setup timeline.

• Bank compliance procedures: Opening a corporate bank account can sometimes be one of the more time-consuming stages for foreign-owned companies. Taiwanese banks typically conduct detailed anti-money laundering (AML) and know-your-customer (KYC) processes. Where shareholders or directors are based across multiple jurisdictions, banks may request additional documentation.

Having supported businesses expanding across multiple international markets, we understand the practical and administrative considerations involved in establishing operations in a new jurisdiction. For companies entering Taiwan, we can provide guidance and manage the various stages involved in the setup process.

Where needed, we can also liaise with the relevant authorities and financial institutions to help ensure regulatory requirements are met.

• Initial planning and documentation preparation: Typically 1 to 2 weeks.

• Foreign investment approval: Generally 2 to 4 weeks, depending on the complexity of the investment structure.

• Company incorporation and registration: Usually 2 to 3 weeks following approval.

• Tax and labour registrations: Typically 1 to 2 weeks after incorporation.

• Visa and work permit processing: Commonly 4 to 8 weeks depending on nationality and employment arrangements.

• Bank account opening and capital verification: Typically 2 to 6 weeks depending on compliance procedures.

For a more accurate assessment based on your plans, please get in touch with our team.