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Taiwan Company

Set up overseas Chinese and foreign investment company in Taiwan

Taiwan provides a suitable business operating environment.

In terms of land costs, Taiwan’s commercial office building rents are lower than those in other countries, and administrative procedures are continuously improved.

Taiwan has complete infrastructure such as hydropower, transportation, and telecommunications, and meets the needs of various investment industries.

I.Types of foreign-invested companies in Taiwan

  • For foreign investors to invest in Taiwan, there are three types of company options: office/branch/limited company. Different types have their own functions and characteristics. Foreign investors can make relevant plans according to actual needs. For differences in related types, please refer to the form below.
  • Comparison table of foreign investment in Taiwanese companies:

II.Introduction to the establishment of a foreign company in Taiwan

Overseas Chinese & foreign (subsidiaries) local independent legal entities, with legal and economic independence, can carry out reinvestment, can also set up branches, issue invoices, and conduct wholesale, retail, import and export business activities.

In addition to the 20% business income tax, when dividends are remitted, 20% of the source withholding must be withheld, but they can enjoy relevant tax incentives.

  • General overseas Chinese & foreign limited company
    Currently, Taiwan divides foreign investment into overseas Chinese & foreign, and mainland investment, which are restricted by the “Foreign Investment Regulations” and “Overseas Chinese Returning Investment Regulations” and other regulations. The negative list is adopted to prohibit or restrict investment. Do not exceed 40 items, and the open rate reaches 96%. Except for the special requirements of the competent authority, there is no minimum or maximum investment limit for other open projects that are not specified. It takes about one month to set up the procedure.
  • Mainland investment in Taiwan subsidiary
    Mainland Investment is based on the regulations of the People’s Relations across the Straits. There are also the “Licensing Measures for People from the Mainland Area to Invest in Taiwan”, “Licensing Measures for the Establishment of Branches or Offices in Taiwan by Profit-seeking Enterprises in the Mainland Area” and “Permits for the mainland investors establishment of branches/offices in Taiwan for profit-making enterprises”, etc. Regulations to regulate investment.
    If the equity of a foreign company contains more than 30% of the total capital directly or indirectly contributed by land capital, it shall be reviewed by mainland capital.
    Currently, mainland merchants are open to investing in 408 industry projects in Taiwan, including 204 manufacturing projects, 161 service projects, and 43 public construction projects. Mainland-funded-related investment enterprises must also provide relevant information required by the unit based on the content of the investment project, such as business certification, operation planning, capital budget, etc., and then attach a note to the relevant department of the project, so the review time is longer, It usually takes at least three months or more.

III.Documents to be prepared for foreign company registration

  • Proposed company name.
  • Business items.
  • The company’s registered capital.(capital verification required).
  • Identification documents of the person in charge.
  • Identification documents of shareholders.
  • A copy of the latest annual housing tax bill.
  • A copy of the ownership certificate of the building.
  • A copy of the lease contract.
  • Shareholder authorization letter.(verification required).
  • Investment Plan.

IV.The basic process of foreign company registration

  • 1.Company name pre-check
    provide the company name and obtain a pre-check form.
  • 2.Investment document certification
    Carry out the investor’s relevant document certification.
  • 3.Investment review committee filing
    Like the investment review committee filing an investment plan application.
  • 4.Opening a preparatory account
    The person in charge opens a preparatory account at the bank.
  • 5.Capital remittance and verification
    remit registered capital and apply to the investment review committee for verification.
  • 6.Business registration application
    Apply for a uniform number at the place where the company is registered.
  • 7.Tax registration and invoice application
    The person in charge goes to the tax bureau for tax registration and applies for proof of ticket purchase.
  • 8.Account conversion
    Convert the preparation account to the official company account.

Opening a corporate bank account in Taiwan is not merely an administrative procedure, but a comprehensive due diligence process conducted by banks in accordance with anti-money laundering (AML) regulations. Banks typically assess factors such as the company’s background, ultimate beneficial owner (UBO), source of funds, and actual business operations, and will verify the authenticity and reasonableness of the company’s activities through interviews.

As foreign-invested companies (including overseas Chinese investment structures) involve cross-border capital flows and foreign shareholding structures, it is advisable for businesses to prepare complete account opening documentation, clarify their investment structure and fund flows, and evaluate key bank review criteria at an early stage of company setup. For example, whether the company’s industry or responsible person already has an existing relationship with the bank. This helps improve the success rate of account opening and shortens the overall company establishment timeline.

V. Compliance Requirements for Foreign-Invested Companies

After establishing a foreign-invested company, the following compliance matters should be noted: 

  • Business Tax and Corporate Income Tax: The company must file business tax returns periodically and submit annual corporate income tax returns in accordance with regulations. 
  • Employment Management: Comply with Taiwan labor laws, establish labor insurance and national health insurance enrollment, fulfill contributions for labor insurance, health insurance, and labor pension, and handle payroll withholding obligations.
  • Annual Declaration of Directors and Major Shareholders: In accordance with AML regulations, non-public companies must complete the annual declaration on the “Company Director and Major Shareholder Information Reporting Platform” between March 1 and March 31 each year.
  • Company Changes: For changes involving shareholders, shareholding ratios, or capital adjustments, foreign-invested companies must apply for approval or filing with the Investment Commission (MOEAIC), either in advance or afterward depending on the case.
  • Invoice Issuance and Tax Registration Maintenance: Companies must properly issue uniform invoices and cooperate with tax authority inspections.
  • Industry-Specific Licenses (if applicable): Certain industries may require additional licenses or permits, such as medical or food-related sectors.

With many years of business experience, Inter Area Professional Service Provider can not only assist customers in setting up companies in Taiwan but also provide tax/ banking/secretary assistance. 

We have professionals who are familiar with the communication of multinational business secretaries and provide customers with the most complete, fast, and secure service.

The focus is on the background and purpose of customers’ practical investment. Different products and services produce new experiences and determine future value.

Set up overseas Chinese and foreign investment company in Taiwant: Frequently Asked Questions Q&A

Q1. Can a foreign national director of an overseas Chinese and foreign investment limited company apply for an investment visa?

  • Yes, a foreign national director of such a company can apply for a Taiwan investment visa (Resident Visa for Investment). However, the following conditions must be met:
    1.The company’s business operations must be approved by the Investment Commission.
    2.The foreign director must invest a certain amount in the Taiwanese company, either personally or via the company (typically not less than NT$6 million). Furthermore, the director must provide relevant financial proof and a business plan.

Q2. What is the recommended capital for an overseas Chinese and foreign investment company?

  • The capital should be determined based on the nature and scale of the company’s operations. Generally, it is recommended to have at least NT$500,000 to NT$1 million to meet regular operational needs. If the company plans to hire foreign employees or apply for an investment visa, the capital should exceed NT$6 million, with additional funds reserved for business development.

Q3. Do foreign investors need to be physically present in Taiwan to establish a foreign-invested company?

  • Not necessarily. Most incorporation procedures in Taiwan can be handled by professional service providers, including company name reservation, investment approval application, and company registration. In most cases, the process can be completed without the investor being physically present in Taiwan.

Q4. Is a local director required for a foreign-invested company in Taiwan?

  • No. A foreign-invested company in Taiwan may appoint foreign individuals as directors or responsible persons. There is no mandatory requirement to appoint a local director, provided that all relevant company laws and investment regulations are complied with.

Q5. Can a foreign-invested company in Taiwan be 100% foreign-owned?

  • Yes. Taiwan generally allows 100% foreign ownership for limited companies, except for certain restricted industries where foreign shareholding limitations may apply.

Set up overseas Chinese and foreign investment company in Taiwant: Frequently Asked Questions Q&A

A: Yes, a foreign national director of such a company can apply for a Taiwan investment visa (Resident Visa for Investment). However, the following conditions must be met:
1.The company’s business operations must be approved by the Investment Commission.
2.The foreign director must invest a certain amount in the Taiwanese company, either personally or via the company (typically not less than NT$6 million). Furthermore, the director must provide relevant financial proof and a business plan.

A: The capital should be determined based on the nature and scale of the company’s operations. Generally, it is recommended to have at least NT$500,000 to NT$1 million to meet regular operational needs. If the company plans to hire foreign employees or apply for an investment visa, the capital should exceed NT$6 million, with additional funds reserved for business development.

A: Not necessarily. Most incorporation procedures in Taiwan can be handled by professional service providers, including company name reservation, investment approval application, and company registration. In most cases, the process can be completed without the investor being physically present in Taiwan.

A: No. A foreign-invested company in Taiwan may appoint foreign individuals as directors or responsible persons. There is no mandatory requirement to appoint a local director, provided that all relevant company laws and investment regulations are complied with.

A: Yes. Taiwan generally allows 100% foreign ownership for limited companies, except for certain restricted industries where foreign shareholding limitations may apply.

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