Recently, many people have successfully established companies in Taiwan and obtained work visas and residence certificates.
I have compiled answers to questions that many people ask during the company formation process.
If you have already read Company Formation Basics, please also see this more detailed advanced guide.
I hope the Q&A below will help anyone considering forming a company in Taiwan. 😊
1. I want to form a company, but I have not yet found a registered office address. Can I still proceed?
When a foreign national forms a company in Taiwan, an investment plan must be submitted to Taiwan's Investment Commission for review.
The Investment Commission must verify that the capital will actually be used for investment
and that foreign parties are not bringing funds into Taiwan under another pretext.
The investment plan does not need to state the company's exact address; naming the area is sufficient (for example, Taipei City).
Later, however, when you open a preparatory company account, many banks will review the lease and inspect the company's address in person.
A Taiwanese bank employee told me directly that
banks have recently tightened their account-opening reviews because many foreign nationals have opened accounts and then disappeared.
In the earlier article on the basics, a reader said that opening a bank account was the most difficult part of the process. I agree.
Because Taiwan has many money-laundering cases, opening a bank account is becoming increasingly difficult.
Advice:
Because the investment-plan review also takes time,
prepare the investment plan while looking for a registered office address.
The Investment Commission requires the capital to be remitted within one year after investment approval,
so you will have enough time to find an address, sign a lease,
open a preparatory company account, and remit the capital.
2. Can I open a company bank account without a Taiwan residence certificate?
Yes.
Banks generally require two forms of identification.
If you do not have a residence certificate, you can apply to Taiwan's National Immigration Agency for a 'Basic Information Form of Uniform ID Number (統一證號基本資料表)'.
It can be issued on the same day,
but immigration offices are very crowded, so please arrive early and take a number.
3. I heard that I must provide my education and work history for the investment-plan review. I am worried that my background may not match the company's proposed line of business.
The review committee under the Ministry of Economic Affairs does examine the investor's background,
but the review is not overly strict.
You may include a range of work experience, including part-time jobs,
and explain it in enough detail to persuade the reviewers.
Please discuss this point fully with a Taiwan attorney.
4. What should I consider when leasing a registered office address, such as a restaurant storefront?
Company formation takes about three months, and obtaining a work permit and residence certificate takes about one additional month,
so set the lease start date as late as possible.
In Taiwan, storefront leases often give the tenant a "fit-out period."
This is a rent-free period, so try to negotiate one.
Foreign nationals may find it difficult to lease storefronts. Security deposits in Taiwan are relatively low—usually two months' rent—so landlords have limited protection
and may be reluctant to lease to foreign nationals.
I therefore recommend looking for business premises early.
If negotiations with the landlord do not go smoothly,
you may propose notarizing the lease or paying an additional security deposit if necessary.
5. Can I lease ordinary commercial office space when forming a company?
It depends on the company's business items.
For example, if your registered business item is food and beverage service but you plan to lease ordinary commercial office space, opening a bank account will be very difficult.
As explained above, banks review the lease and inspect the company's address in person.
At the final company-registration stage, the city government will also require the registered address to be in an area where a restaurant may operate.
If the premises are ordinary commercial office space, company registration may not be possible.
By contrast, if the business items are activities that may be conducted from commercial office space, such as advertising or wholesale,
the company may be established there. Please confirm this before signing the lease.
If you need assistance or a consultation concerning Taiwan law, please leave a comment or contact us at any time.
See also:
Wei Tseng (曾雋崴), Taiwan Attorney
