ai_edited.png){kind=small}
Home > Company Registration > Choosing the right ristered address
Company Registration: Choosing the Right Registered Address
When starting a company, one of the step is 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. This guide will help you navigate the various possibilities for selecting the right registered address for your company.
1. Legally Acceptable Areas for Registration
According to the Building Act, the Building Use Zoning Regulations, and the Usage Permit Management Guidelines, the location of your business must comply with zoning and usage laws:
-
Residential Areas: Primarily for housing purposes, but certain small-scale businesses (e.g., online services or handicraft workshops) may apply for exceptions.
-
Commercial Areas: Ideal for setting up offices and conducting business activities. It is the most commonly chosen area for company registration.
-
Industrial Areas: Suitable for businesses requiring manufacturing facilities or large-scale storage spaces.
⚠️ Note: Registering your company at a location that does not comply with zoning regulations may result in fines or a forced relocation.
2. Using a Rental Property
For many entrepreneurs, using a rental property as the company’s registered address is a cost-effective and convenient option. However, it’s important to be aware of potential issues:
Advantages
-
Cost-saving: No need to rent separate commercial space, making it ideal for startups.
-
Easy setup: With your landlord’s consent, the registration process is straightforward.
-
Rental expense can be deducted.
Key Considerations
-
Tax Implications: Converting a residential property to commercial use may result in higher property and land value taxes. Landlords might pass these costs on to tenants.
-
Relocation Costs: If you need to move, changing the registered address incurs a handling fee of approximately TWD 6,000–7,000 and can be time-consuming.
-
Business Type: Rental properties are best for businesses with stable growth and low relocation needs.
Have Questions About Renting an Office In Taipei?
Finding an office space in Taipei as a foreigner is achievable, though it comes with certain challenges. The city's competitive real estate market and potential language barriers can make the process complex. Collaborating with an English speaking real estaste agent familiar with Taipei's commercial property landscape can help identify suitable spaces, negotiate lease terms, and manage necessary paperwork.
For more information, please refer to :
5 Most Common Questions for foreigners renting Offices or apartments in Taiwan I UR House
Looking for an English-speaking real estate agent?
Line ID: adam5659
Whatsapp: +886 984389079
Email: yuadam86@gmail.com
3. Borrowing an Address from Friends or Family
Using the address of a friend’s or family member’s home or office can also be a practical solution, especially for new businesses. However, there are potential downsides to consider:
Advantages
-
No additional rent: Ideal for startups with limited funds.
-
Simplified process: If the address is already approved for business use, no further applications are needed.
Disadvantages
-
Tax Bureau Scrutiny: Multiple businesses sharing the same address may attract tax bureau audits and potentially disqualify your company from small-scale business tax benefits.
-
Rental Income Tax: The tax bureau may assume the property owner receives rental income and require them to pay taxes on it.
-
Long-term Stability: Changes in the property’s use or ownership could disrupt your business operations.
4. Business Center Registration
For businesses that don’t need a physical office, such as online stores or consulting firms, business centers offer professional address registration services.
Advantages
-
Affordable: Monthly fees typically range from TWD 2,500 to 3,500 in Taipei City, 1500 to 3000 in Taichung City, making this a cost-effective solution.
-
Professional Image: A business address enhances credibility with clients.
Disadvantages
-
Input Tax Credit Limitations: Companies registered at business centers are generally restricted from applying for tax refunds and can only carry forward input tax credits.
-
Strict Audits: The tax bureau may extend the invoice review process for companies registered at business centers, potentially delaying operations.
-
Industry Restrictions: Business centers are unsuitable for industries requiring storage or physical space, such as import/export businesses.
5. Leasing a Physical Office
For businesses with stable operations or plans for expansion, leasing a physical office is a logical next step. The tax implications depend on whether the landlord is an individual or a corporation:
-
Individual Landlord:
-
Rent ≥ TWD 20,010 per month: Subject to 10% withholding tax and 2.11% supplementary health insurance premium.
-
Rent ≤ TWD 19,999 per month: No withholding tax required.
-
Tip: Clarify tax obligations with your landlord before signing the lease to avoid disputes.
-
-
Corporate Landlord:
-
No withholding tax or supplementary health insurance premium.
-
Rent invoices can be used to offset business tax liabilities, providing tax savings.
-
Don't know how to calculate the withholding tax for rent. Use Songjer's withholding tax calculator
6. Special Requirements for Certain Industries
Some industries have specific requirements regarding registered addresses:
-
Import/Export Trade:
-
Exporters: Tax refunds are permitted, but the tax bureau requires exporters to have a physical office, not just a business center address.
-
Importers: Companies must provide proof of storage facilities; a simple registration address may not be approved.
-
-
Regulated Industries:
-
Certain industries, such as funeral services, require office spaces of specified dimensions, making business centers unsuitable.
-
Conclusion
Choosing the right registered address for your company is more than just finding a convenient location—it’s about aligning with your business’s needs, compliance requirements, and long-term growth plans. While rental properties and business centers are suitable for startups, stable businesses benefit more from physical offices that enhance their professional image and tax efficiency. Understanding the pros and cons of each option ensures you make an informed decision, setting the stage for your company’s success.