Key Summary
- Taiwan company formation has no statutory minimum capital — even 1 TWD is possible — but a representative who needs a work permit and residence card must invest at least TWD 500,000 as a sole shareholder.
- Company setup typically takes about 3 months, with an additional month for the work permit and residence card after incorporation.
- The core flow is: Investment Commission approval → company name pre-check and power of attorney notarization → incorporation registration → tax registration → formal bank account opening.
Figures and requirements on this page are general information drawn from our public columns and may vary by case.
Taiwan Company Setup Process (5 Steps)
The five steps below summarize the core flow of setting up a company in Taiwan. Detailed documents and timelines vary by case.
Investment Commission (投審會) approval
Foreign investors must file an investment plan with the Investment Commission for review. The Commission verifies that the capital is genuinely used for investment; after approval, capital must be remitted within one year.
Company name pre-check and power of attorney notarization
Apply to reserve the Chinese company name and complete authentication and notarization of the power of attorney. Searching for a registered office address in parallel saves time.
Incorporation registration (capital remittance, audit, registration)
Open a preparatory bank account, remit the capital, pass a capital audit, then file incorporation with the Ministry of Economic Affairs. Remitting from a Korean bank requires in-person transfer by the investor and an overseas direct investment report.
Tax registration
After incorporation, complete tax registration. The company files business tax (VAT) of 5% every two months and profit-seeking enterprise income tax of 20% each May for the prior year.
Formal bank account opening
Once incorporation documents are issued, the responsible person converts the preparatory account into a formal account at the bank. Anti-money-laundering rules make account opening strict; banks review lease agreements and conduct site visits.
Entity Comparison (Subsidiary, Branch, Liaison Office)
Taiwan entry takes three main forms: subsidiary (company limited by shares / limited company), branch, and liaison office. Tax exposure, legal liability, and listing eligibility differ.
| Item | Subsidiary (Co., Ltd. / Ltd.) | Branch | Liaison Office |
|---|---|---|---|
| Legal personality | Yes (independent entity) | No (business capacity only) | No |
| Business tax (VAT) | 5% | 5% | N/A |
| Corporate income tax | 20% | 20% | N/A |
| Dividend withholding (foreign) | 21% | None | N/A |
| Undistributed-earnings tax | 5% | None | N/A |
| Joint venture (others as shareholders) | Allowed | Not allowed (Korean HQ 100%) | Not allowed |
| Listing in Taiwan | Allowed (Co., Ltd.) | Not allowed | Not allowed |
| R&D tax credit | Up to 30% | None | None |
Cost and Timeline Summary
The figures below summarize the general requirements, tax rates, and timelines published in our columns. Actual costs vary by industry, capital, and professional fees.
| Item | Detail |
|---|---|
| Minimum capital (formation itself) | No statutory minimum (1 TWD possible) |
| Capital for work permit / residence card | Sole shareholder at least TWD 500,000 (about TWD 170,000 with a Taiwanese partner) |
| Formation duration | About 3 months |
| Work permit / residence card duration | About 1 month |
| Business tax (VAT) | 5% (filed every 2 months) |
| Corporate income tax | 20% (annual) |
| Korea–Taiwan double-taxation agreement | Effective 2023-12-02. Business profits tax-exempt without a fixed PE; dividend cap rate 10% |
Frequently Asked Questions
- Is there a minimum capital to set up a company in Taiwan?
- Company formation itself has no minimum capital requirement — even 1 TWD is possible. However, if the representative needs a work permit and residence card, a sole shareholder must invest at least TWD 500,000 (about TWD 170,000 with a Taiwanese partner), and the company’s annual revenue must exceed TWD 3,000,000.
- Can setting up a company lead to a Taiwan residence card?
- Yes. When the investor must manage and operate the company in Taiwan, they may apply to the Ministry of Labor for a foreign work permit, then to the immigration agency for a residence card. Work permits are granted for 1–3 years, matching the residence card validity.
- What is the tax difference between a subsidiary and a branch?
- Both pay 5% business tax and 20% corporate income tax. A subsidiary adds 21% foreign-shareholder withholding on distributed dividends and a 5% undistributed-earnings tax if profits are retained. A branch remits profits to the head office with no extra tax and no undistributed-earnings tax.
- Is bank account opening really difficult?
- Anti-money-laundering rules have made Taiwan banks stricter about opening accounts. Most banks review the lease and conduct a site visit to the registered address. Without a residence card, you can obtain a "Unified Number Basic Data Form" from the immigration agency to open an account.
- How long does setup usually take?
- Company formation typically takes about 3 months, plus about one more month for the work permit and residence card. It is safest to set the lease start date for your premises as late as possible.
Related Columns
Clarify the right setup structure for your case
The choice between a subsidiary, branch, and liaison office depends on industry, capital, and whether you need a residence card. Share your materials and we will arrange a consultation flow with Attorney Wei Tseng.
Book Consultation