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Home >> Taiwan company setup >> Taiwan Company Registration & Branch Setup
Six Considerations to Register a Taiwan Company
Updated on September 1, 2025
Starting a business is no small task. Starting a business in a foreign country is even harder. To get you started, we have made a list of six considerations as you begin to register a company in Taiwan. If you ever feel that you need help, our team of accounting and consulting professionals stands ready to assist you with any part of this process.
1. Company registration - Have a Chinese Business Name
The official language in Taiwan is Chinese. The Taiwan Company Registry requires an official Chinese company name when registering a business in Taiwan. You cannot choose a business name that is already taken by another company. Check the availability of your preferred business name through the platform from the Department of Commerce, MOEA. Once the company is registered, key details (name, capital, directors, address, registration date, and business scope) become publicly available on the MOEA’s online company information inquiry system.
Taiwan Company Information Inquiry Platform
The official Chinese business names in Taiwan are Chinese, which means the English names are usually just translations. However, many circumstances where a Taiwanese company needs an English name, such as accepting international bank payments or exporting goods. Under the above conditions, a Taiwan company can officially register its English name at the Bureau of Foreign Trade.
Choosing a good Chinese business name is a good start for your business. There are several ways to choose a Chinese name. Before you pick one, we suggest reading the article link below. Our team can assist in creating a Chinese business name that reflects the sound or meaning of your English name.
Branch name:
Unlike the company name, the name should follow a specific format.
Name of Parent Company + Taiwan Branch + (County)
Ex: Acclime Company Limited Taiwan Branch ( Singapore)
2. Company registration - Choose a Business Structure
Choosing the right business structure for your venture is important because the choice can affect tax liabilities, regulatory requirements, and ultimately the success or failure of a company. The table below compares the main characteristics of the most common company structures for foreign investors: download PDF
Business Entities for Foreign Investors in Taiwan:
1. Company Limited by Shares
2. Limited company
3. Branch Office of the foreign company
Topic 1: Limited Company or Branch Office?
What’s the legal difference between a limited company and a branch office?
A branch office is not considered a distinct legal entity, whereas a subsidiary is regarded as an independent Taiwanese company. From a practical point of view, a branch is more of an extension of the parent company. It cannot act by itself and has no board of directors. On the other hand, a limited (i.e., a subsidiary) may be wholly owned by a foreign parent but can operate on its own behalf. A limited company is required to hold shareholders’ meetings and comply with other corporate formalities. A branch office is treated as a permanent establishment of the foreign head company by tax authorities.
The advantages of setting up a limited company (subsidiary):
As the subsidiary and the parent company are distinct legal entities, the parent company is not exposed to any liabilities of its subsidiary. The liability of the Taiwanese subsidiary is limited to its own assets. By contrast, a foreign investor is always liable for the activities of its Taiwan branch. This means the execution of the branch’s liabilities can be enforced at the expense of the foreign investor’s assets, even if these are located abroad.
The advantages of setting up a branch office:
1. No minimum assigned capital is required for setting up a branch office.
2. Taiwanese corporate law does not impose requirements regarding the establishment of a board of directors, the distribution of profits, or the organization of shareholders’ meetings.
3. No profit remittance tax on branch profits.
4. Losses made by the branch may be offset immediately against the earnings of the head office.
Topic 2: Comparison of Limited Company and Company Limited by Shares
1. A limited company is a company organized by one or more shareholders, each of whom has limited liability for the company, limited by the amount of capital contributed by the shareholders. Most single-owner businesses ( one shareholder only ) choose the limited company as the form of incorporation. A limited company is not required to have a form of "shareholder meeting". Shareholders can make decisions via a written consent agreement, rather than formal meetings.
A Limited company by shares is organized by two or more individual shareholders (or one or more corporate/government shareholders) and its capital is divided into shares. Shareholders’ liability is proportional to their shareholdings. A company limited by shares must have a board of directors and hold shareholders’ meetings.
As of 2024, 75% of all registered companies in Taiwan were limited companies, and 25% were companies limited by shares, including closely held companies.
2. The advantages of Limited Company and Company Limited by Shares
Limited Company:
A limited company can be established with only one shareholder and does not need to set up a supervisor, which makes it easier to set up; if there are more than two shareholders in a limited company, the transfer of shares must be approved by the other shareholders, and the shareholding structure is relatively stable.
Company Limited by Shares:
A limited company must have at least two natural persons shareholders or at least one governmental or legal person as a shareholder, so it is usually larger in size. The Company Law also stipulates that a company limited by shares must have a supervisor, which is more stringent in terms of corporate governance. In addition, the shares of a limited company can be freely transferred without the consent of the other shareholders, which allows for a greater degree of freedom in the movement of shareholdings than a limited company.
FAQ:
(1) Can a foreign national/company own 100% shares of a Taiwanese company?
Yes, unlike other countries, such as Thailand and the Philippines, where a foreign national or an international company cannot own 100% shares of a company, the Taiwanese government allows a foreign national/company to own 100% shares of a Taiwanese company.
(2) Can a foreign national be a director or a supervisor of a Taiwanese company?
Yes, the director, the supervisor, or the responsible person of a branch can be a foreign national.
(3) Is it necessary to own shares to become the director of a limited company? The director or the supervisor of a company limited by Shares?
Limited company:
Yes, the director of a limited company must hold shares to become a director of a limited company.
However, when a company acts as a shareholder of another company, its authorized representative can be elected as a director. The authorized representative is not required to be a shareholder.
Company limited by shares:
No, it is not necessary to own shares to be a director or a supervisor if it is not a public company.
(4) What are the "permitted activities" for a Representative Office?
The permitted activities are “signing contracts, bidding, purchasing, quoting, and bargaining.” A representative office that provides support operations to its foreign head offices, such as marketing support, sales support, and support for technical issues raised by customers, which are beyond the scope permitted by the government, may face tax and legal compliance problems. Please see the article The Business Scopes of the Representative Office in Taiwan
3. Company Registration - Determine Business Activities
Tell the government what business you are going to do. Select one or more business scopes that your company will be engaging in. The business scopes must be clearly stated at the time of company incorporation. The chosen business scopes have to be in the categories that MOEA has predefined. You can find the list of business scopes at the Ministry of Economics Affairs, or you can download them here.
MOEA business scope inquiry
Prohibited or Restricted Business Activities
Foreign investors are prohibited from investing in industries that could negatively impact national security, public order, good morals, public health, or any industries expressly prohibited by law. For industries subject to restrictions under law or regulations, investors must obtain prior approval or consent from the competent authority before making such investments.
Please refer to the link below for prohibited and restricted industries. Negative List for Investment by Foreign Nationals
Apply for a License for a Chartered Business or a Factory License
a. Business Licenses and Permits
Before registering your business, it's important to determine whether your activities are restricted. In Taiwan’s company registration system, business activity codes ending in ‘1’ denote regulated industries requiring special permits. Meeting specific criteria is typically required to obtain these permits. For example, if you're planning to run a pet store that breeds, trades, and fosters pets (A401031 Pets Service Manufacturing 寵物服務業), you'll need to obtain a business permit from the Council of Agriculture, Executive Yuan. Similarly, if you plan to register a pharmaceutical company (C802041 Drugs and Medicines Manufacturing 西藥製造業), you'll need to obtain a business permit from the Ministry of Health and Welfare.
b. Factory Registration
Manufacturers that use or operate machinery and equipment are required to obtain factory registration. The process involves submitting an application to the local government and undergoing an on-site inspection to ensure compliance with safety and environmental standards. Once approved, the company will be issued a factory registration certificate. Registration must be renewed periodically, and businesses must remain in compliance to keep it valid.
4. Company Registration – Identify Shareholders, Directors, and Decide Articles of Association
First, the Company Act requires that every company must have at least one shareholder. Shareholders may be either corporate entities or individuals of any nationality. The ownership structure can have important tax implications. For further details, please see the article below: Understanding Dividend Tax in Taiwan: How Shareholder Structure Affects Tax
Extension reading: What should I know before accepting to be a director, branch manager, or appointed manager of a Taiwan company?
Second, you are required to disclose the investor’s holding structure down to the ultimate beneficial owner, who must be an individual. This involves providing the shareholder list for each layer of the holding companies.
You are required to authorize an investor agent as a legitimate attorney regarding company formation and registration. Your company’s investor agent must be a Taiwan resident and must possess sound knowledge of the Taiwan Companies Act. Our qualified specialists can provide your firm with the services.
Deciding the paid-in capital is also important. Although there is no minimum paid-in capital requirement, we would suggest that the amount of capital should be sufficient to fund the operation of the Taiwanese company for the first four to six months after incorporation.
Last, a well-planned article of association is also the critical foundation of a startup. This is an important document that specifies the company's capital, number of shares, the value of shares, agreements with respect to relations between the company's shareholders, such as shareholders' rights, and the company's operational policies while carrying on business activities.
FAQ:
(1) What is the minimum capital for limited companies and companies limited by shares in Taiwan?
There is no statutory minimum capital requirement. However, to ensure smooth operations, we recommend setting a capital amount sufficient to cover the company’s business activities for at least three to six months without relying on additional funding. If the initial capital is set too low, the authorities may require the company to submit a 3–5 year financial plan demonstrating its ability to operate sustainably with limited capital.
In addition, if you plan to apply for a work permit for a foreign national to serve as the company’s manager, the company must have a minimum paid-in capital of NTD 500,000.
(2) I am still looking for a permanent office. Can I register the company in a business center temporarily?
Yes. Finding a suitable office can be challenging with so many factors to consider. You may temporarily register your company at a business center or even at your home, and then relocate to a permanent office later. However, please note that certain types of businesses — such as import/export and trading companies, restaurants, and manufacturers — are not permitted to register in a business center or residential address. In such cases, the government may reject the application.
5. Company Registration - Determine Registered Office, Open Bank Account, and Inject capital
Choosing a suitable registered address. While it might seem straightforward, there are numerous regulations and practical considerations to keep in mind. Whether you’re looking at a residential area, a rental property, or a business center, each option comes with its own set of advantages and limitations.
Extension reading: Choosing the Right Registered Address
Before incorporation, the company must open a preparatory bank account to receive the initial capital injection. After the funds are deposited, a CPA will need to verify the capital as part of the incorporation process. Please refer to the article: Opening a bank account in Taiwan.
FAQ:
(1) Is it mandatory for the chairman of the company to visit the bank in person for opening a bank account?
Opening a preparatory account to deposit the capital before incorporation is a mandatory step for both company and branch registration. After the company is incorporated, the director (or chairman) must visit the bank again to convert the preparatory account into a formal corporate bank account.
During the Covid-19 outbreak, some banks allowed the chairman to open a business account without being physically present. However, at present, nearly all banks in Taiwan require the chairman to visit the bank in person to complete the account opening process.
6. Company Registration - Timeline and duration
Post-Incorporation Compliance Requirements
a. Export/Import Registration
Businesses must apply to the Bureau of Foreign Trade to register as importers or exporters in Taiwan. After approval, an Import/Export License will be issued. In some cases, additional permits or certifications, such as product-specific permits or certificates of origin, may also be required.
Businesses must maintain compliance with all relevant import/export regulations, as violations can result in fines, penalties, or disruptions to operations.
b. Work Permit Application
If the company intends to employ foreign nationals, it must apply for work permits through the Ministry of Labor. The process generally requires proof of sufficient paid-in capital, employment contracts, and supporting documentation of the employee’s qualifications.
c. Trademark Registration
Companies may register their trademarks with the Taiwan Intellectual Property Office to secure brand protection in Taiwan. Registration helps safeguard against infringement and ensures exclusive rights to use the mark in commerce.
d. Copyright & Patent Registration
To protect intellectual property, companies may file copyright or patent applications with the Intellectual Property Office. Patents are essential for inventions and technologies, while copyright protects creative works.
e. VAT registration and filing every two months
After incorporation, businesses must register for Value-Added Tax (VAT) with the local tax authority. VAT returns are filed every two months, and failure to submit on time can result in penalties. Maintaining accurate invoicing and bookkeeping is essential for compliance.
f. Accounting and Daily Bookkeeping
All companies in Taiwan are required to maintain proper accounting records in accordance with accounting principles. Daily bookkeeping ensures accurate financial statements, supports tax filings, and prepares the company for potential audits.
g. Annual Company Income Tax Filing
Companies must file annual corporate income tax returns with the National Taxation Bureau, typically due by the end of May for the preceding fiscal year. The return must include audited financial statements if revenue exceeds statutory thresholds.
VAT, company income tax, salary, and shareholder meeting filing schedule
h. Annual Shareholders Meeting Filing
A shareholders’ meeting must be held annually to approve financial statements, allocate profits, and make key corporate decisions. Resolutions must be recorded and submitted to the Ministry of Economic Affairs (MOEA) as required.
i. Employee Health Insurance and Labor Pension Enrollment
Employers are required to register employees for National Health Insurance (NHI) and the Labor Insurance program, as well as contribute to the Labor Pension Fund. These obligations ensure employee welfare and compliance with labor laws.
j. Payroll Calculation, Compliance, Submission, and HR Management
Employers must calculate and withhold income tax, labor insurance, health insurance, and pension contributions from employees’ salaries each month. Payroll reports must be submitted to the relevant authorities on time to avoid fines or penalties.
k. Human Resource Management
Human Resources management includes establishing employment contracts, maintaining employee records, and ensuring compliance with Taiwan’s labor laws and regulations. Effective HR management also involves handling onboarding, performance evaluation, and employee relations to support both business operations and workforce well-being.
Writtened by Songjer CPA, last updated at Septmeber 1, 2025,
Incorporation
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Company Registration
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Branch Office Registration
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Rep Office Registration
Accounting and Tax
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Taiwan Company Tax
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Taiwan Individual Tax
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VAT Filing
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Bookkeeping
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Tax Benefit Application
Managing Business
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Business License
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Payroll and Compliance Service
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Registered Office
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Taiwan Statutory Compliance
Audit
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Tax Attestation
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Financial Statement Audit
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