Taiwan Company Formation
Taiwan Company Formation: Establishing Your Business in Asia’s Innovation Hub Main Characteristics and the basic rules of Company registration in Taiwan
Taiwan Company Formation with BRIS Group
BRIS Group provides expert Taiwan company formation services for entrepreneurs and international investors seeking to establish a strong business presence in East Asia. Setting up a company in Taiwan offers access to advanced infrastructure, a skilled workforce, and a strategic location for trade with China and the Asia-Pacific region — making it ideal for international expansion.
Our specialists manage the complete Taiwan company registration process remotely, including corporate banking support, compliance, and ongoing administration. With BRIS Group, your Taiwanese company will be fully compliant and ready to operate efficiently across Asia and globally.
A Comprehensive Guide for Non-Residents to Register a Company in Taiwan
Taiwan is one of Asia’s most dynamic economies, renowned for its advanced technology sector, strong legal framework, and strategic location in East Asia. With a world-class infrastructure, skilled workforce, and proximity to major markets like China, Japan, and Southeast Asia, Taiwan company formation offers excellent opportunities for international entrepreneurs and investors seeking a stable and innovation-driven jurisdiction.
This guide outlines the advantages, requirements, and process of company formation in Taiwan, helping you understand how to establish your business efficiently in this thriving Asian economy.
Why Choose Taiwan for Company Formation?
Taiwan’s business environment combines transparency, innovation, and efficiency. It provides foreign investors with access to advanced manufacturing ecosystems, world-leading technology industries, and a reliable legal system.
Key advantages include:
- Strategic Asian location: Gateway to both Mainland China and the broader Asia-Pacific market.
- Robust economy: High GDP per capita and a strong focus on innovation and exports.
- Pro-investment policies: Open to 100% foreign ownership in most sectors.
- Highly skilled workforce: Especially in electronics, semiconductors, and IT.
- Excellent infrastructure: Modern transport, logistics, and telecommunications systems.
- Stable legal and political system: Ensures property rights and investment protection.
- Extensive trade agreements: Access to regional and global markets.
Types of Companies in Taiwan
Foreign investors can establish different business structures depending on their objectives and scale of operations.
- Limited Liability Company (LLC)
The most common structure for foreign-owned entities. It offers limited liability protection and can be wholly foreign-owned.
- Company Limited by Shares
Similar to a corporation, suitable for larger enterprises intending to raise capital publicly or privately.
- Branch Office
A foreign company may register a branch in Taiwan to carry out local operations while maintaining its parent company’s legal identity.
- Representative Office
Used primarily for non-commercial activities like market research, promotion, and liaison.
- Partnership or Sole Proprietorship
Typically reserved for local entrepreneurs rather than foreign investors.
Advantages of Taiwan Company Formation for Non-Residents
- 100% foreign ownership is permitted in most industries.
- Strategic access to regional supply chains and manufacturing clusters.
- Transparent business regulations aligned with global standards.
- Relatively low corporate tax rates and investment incentives.
- Strong protection for intellectual property (IP).
- Access to government-backed R&D and innovation programs.
- English-speaking professional services and financial sector.
Disadvantages of Taiwan Company Formation
- Certain industries (e.g., telecommunications, defense, and media) may restrict foreign investment.
- Mandarin Chinese is the official language; translation may be required.
- Bureaucratic procedures can be detailed for first-time investors.
- Annual reporting and tax compliance requirements are strict.
- Foreign directors or representatives may need work or residence permits.
Requirements for Company Registration in Taiwan
To register a company in Taiwan, you generally need the following:
- Company name approval (from the Department of Commerce).
- At least one director and one shareholder (can be foreign nationals).
- Registered local address in Taiwan.
- Minimum capital requirement – no official minimum, but typically NT$500,000 or more is recommended.
- Company Articles of Incorporation.
- Appointed local agent or representative (if foreign shareholders are involved).
- Identification documents for shareholders and directors.
- Investment approval (for wholly foreign-owned companies).
- Tax registration with the National Tax Administration.
Procedure for Taiwan Company Formation
- Name Pre-Approval:Submit proposed company name to the Department of Commerce for reservation.
- Investment Approval:Foreign investors must apply to the Investment Commission of the Ministry of Economic Affairs (MOEA).
- Open a Bank Account:Deposit the initial capital in a temporary bank account in Taiwan.
- Prepare Incorporation Documents:Draft and notarize Articles of Incorporation and related documents.
- Company Registration:File registration documents with the Department of Commerce.
- Tax Registration:Register for business and income tax with the National Tax Administration.
- Open a Permanent Bank Account:Transfer the initial capital and activate the corporate account.
- Apply for Licenses:Obtain specific industry licenses if required.
Timeframe for Taiwan Company Formation
|
Stage |
Estimated Duration |
|
Name Pre-Approval |
1–2 business days |
|
Investment Approval |
5–10 business days |
|
Company Registration |
5–7 business days |
|
Tax Registration & Bank Account |
3–5 business days |
Total Estimated Time: 2–4 weeks depending on the complexity and approval process.
Corporate Tax System in Taiwan
Taiwan’s corporate tax regime is straightforward and competitive, offering incentives for specific industries such as high-tech, renewable energy, and R&D.
|
Tax Type |
Rate |
Notes |
|
Corporate Income Tax (CIT) |
20% |
Applies to resident companies on worldwide income. |
|
Branch Office Tax |
20% |
Same as local companies. |
|
Withholding Tax |
10%–20% |
On dividends, interest, royalties to non-residents. |
|
Value Added Tax (VAT) |
5% |
Applies to most goods and services. |
|
Capital Gains Tax |
20% |
On disposal of shares or property. |
Incentives:
- Tax deductions for R&D investments.
- Tax holidays for certain high-tech and industrial projects.
- Double taxation agreements with over 30 countries.
- Preferential tax treatment for foreign investment in strategic sectors.
How We May Help You with Our Professionals
Setting up a company in Taiwan can be complex, especially for first-time foreign investors. Our experienced team provides comprehensive, end-to-end assistance to ensure a seamless incorporation process.
Our services include:
- Consultation on business structure and investment planning.
- Company name reservation and incorporation filing.
- Preparation of Articles of Incorporation and supporting documents.
- Assistance with foreign investment approval (MOEA).
- Bank account opening support.
- Tax registration and accounting setup.
- Legal and compliance advisory services.
- Virtual office and registered address services.
Start Your Taiwan Company Formation Journey Today
With its innovative economy, strong industrial base, and business-friendly environment, Taiwan is an exceptional choice for investors looking to expand into Asia. Whether you are in manufacturing, technology, or services, establishing a company in Taiwan provides access to one of the region’s most dynamic markets.
Our professional consultants will guide you through every stage of the Taiwan company formation process, ensuring regulatory compliance and smooth business setup.
Contact us today to begin your Taiwan incorporation journey and unlock new opportunities in the heart of Asia’s innovation hub.
Questions & Answers
1. What is Corporation Tax in Taiwan?
Corporation tax in Taiwan is set at a standard rate of 20% on net taxable income. This tax applies to both domestic and foreign companies operating within Taiwan. Companies can benefit from various tax incentives, such as deductions for research and development expenses, which can help reduce their overall tax burden.
2. How is Income Tax assessed in Taiwan?
Income tax in Taiwan is progressive, with rates ranging from 5% to 40%, depending on income levels. Residents are taxed on their worldwide income, while non-residents are taxed only on income sourced in Taiwan. Deductions and exemptions may apply, such as for dependents and specific expenses.
3. What is the VAT Rate in Taiwan?
Taiwan imposes a Value-Added Tax (VAT) of 5% on most goods and services. Certain essential goods, such as food and medical services, may be exempt or subject to a reduced rate. Businesses are required to register for VAT if their taxable sales exceed NT$480,000 annually.
4. How is Dividends Tax structured in Taiwan?
Dividends distributed by Taiwanese corporations are subject to a withholding tax of 21%. For foreign investors, this rate may be reduced under tax treaties Taiwan has with other countries. It is important for investors to check treaty benefits to ensure compliance and optimisation of tax liabilities.
5. Are there any other significant taxes in Taiwan?
In addition to the aforementioned taxes, Taiwan imposes several other taxes, including the property tax, inheritance tax, and gift tax. The inheritance and gift tax rate can reach up to 20%. Local governments may also levy additional taxes, such as the land value tax, based on the property’s assessed value.
Learn more: Visit our Full FAQ HUB page
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What are the benefits of forming a company in Taiwan as a non-resident?
Forming a company in Taiwan as a non-resident offers several advantages. Firstly, Taiwan has a strategic location for businesses targeting the Asian market, serving as a gateway to major markets like China and Southeast Asia. Secondly, the corporate tax rate in Taiwan is relatively low, making it an attractive destination for investment. Additionally, a Taiwanese company can enhance credibility and trust among local clients and partners. Moreover, Taiwan has a well-structured legal system that protects foreign investors, ensuring a secure environment for business operations.
What are the requirements for non-residents to form a company in Taiwan?
Non-residents looking to form a company in Taiwan must meet specific requirements. You will need to provide a valid passport and any necessary identification. Additionally, it’s essential to have a registered office address in Taiwan, which can often be facilitated through local service providers. Depending on the type of business, you may also need to apply for various permits or licenses. Working with a local legal expert can streamline the process and ensure compliance with Taiwan’s regulations.
How long does it take to register a company in Taiwan for non-residents?
The process of registering a company in Taiwan for non-residents typically takes between 2 to 4 weeks. This timeframe can vary based on the complexity of the business structure and the completeness of the submitted documents. Initial registration involves name approval, preparing the company charter, and submitting the registration application to the relevant authorities. After registration, additional licenses may be required, which can extend the overall timeline. It’s advisable to work with a local consultant to expedite the process.
What types of businesses can non-residents set up in Taiwan?
Non-residents can set up various types of businesses in Taiwan, including limited liability companies, branch offices, and representative offices. A limited liability company (LLC) is the most common structure and offers legal protection to its shareholders. On the other hand, a branch office operates as an extension of a foreign company but requires a local representative. A representative office, while not allowed to conduct direct business activities, serves as a liaison for marketing and communication purposes. The choice depends on the specific business goals.
Are there any restrictions on foreign ownership in Taiwanese companies?
In Taiwan, foreign ownership is generally permitted, although there are certain restrictions depending on the sector. For most industries, non-residents can own 100% of a company. However, sectors such as telecommunications, finance, and media may have limitations on foreign investments. It’s essential to check the specific regulations for the intended sector before proceeding. Consulting with local legal experts is recommended to navigate any complexities related to foreign ownership laws.
What taxes should non-resident business owners be aware of in Taiwan?
Non-resident business owners operating in Taiwan need to be aware of several tax obligations. The primary tax is the corporate income tax, which is typically set at 20%. Additionally, businesses should account for value-added tax (VAT) on sales, which is generally around 5%. Depending on the business activities, other taxes may apply, such as withholding tax on dividends paid to foreign entities. It is crucial to maintain proper accounting records and consult with a tax professional familiar with Taiwanese tax law to ensure compliance.
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This publication is provided for information purposes only. This info should not be treated as a substitute for a tax or legal consultation or legislation. You should not act on the basis of the information contained in this publication without having obtained individual advice from the professional expert.
BRIS GROUP does not assume responsibility for any damage resulting from decisions made by the reader on the basis of this publication.
About Taiwan
Capital: Taipei
Region: The eastern part of Taiwan is washed by the Pacific Ocean, while the southern and northern parts are washed by the South China and East China Seas
Currency: Taiwanese dollar (TWD)
Time Zone: GMT+8
Dial Code: +886
Abbreviations: TW
Helping Your Company Thrive in Taiwan With us, starting and running a business in Taiwan will be easy and efficient!
- Full support of the company’s registration in Taiwan: from the preparation of documents to their submission.
- Remote registration: all processes are online, wherever you are.
- Secretary and Treasurer: we can take on these important roles.
- Nominal directors and shareholders: we will ensure the confidentiality of your information.
- Help in opening a bank account: we will simplify this complex process.
- Registration for taxes, VAT and EORI: ensure all requirements are met.
- Website development: we will create a professional online representation for your business.
- Logo creation: we will design a unique and memorable logo for your brand.
- Full administrative support of the company: we will take over routine tasks.
- Mailing address organization: we provide a reliable mailing address for your business.
- Organization of the virtual office: we will ensure the professional image of your company.
- Telephone answering service: we will answer calls on behalf of your company.
- Accounting, audit and reporting: ensure accurate and timely accounting.
- Preparing and filing a VAT declaration: let’s save you the trouble.
- Interaction with local authorities: take over communication with state institutions.
- Trademark registration: protect your brand.
- More Emphasis on Customer Input.