Whether you have moved to Taiwan for a job interview or for a new adventure with yourself or your family, you might decide that you want to start a business in the country.
There are several benefits that will make starting a business in Taiwan lucrative and fun for foreigners, including the fact that foreigners can own 100% of their business.
And Taiwan has a low cost of living so you can focus on making money rather than spending it on your rent.
Although the rewards are great, you will still need to learn how to get your business started in Taiwan before you can start reaping them.
Opening Up a Company in Taiwan
If you want to open up a company in Taiwan, then you might not even have to come to Taiwan to get things started.
Recent changes have made it possible to set up your business entity without having to be present.
In general, it is a good idea to contract an agency or local representative in Taiwan to handle the process for you.
In terms of your bank account, most banks used to require you to come in person to open the account, but now there are many banks that will accept a Power of Attorney (POA).
For locally-owned banks or foreign-based banks, you can work with a POA to open a business account without coming to Taiwan.
However, for government-owned local banks, you will need to come in person.
Foreign-based banks will offer you the most flexibility, but they may have requirements such as a minimum opening balance, or a certain level of sales per year, or they may only accept accounts for businesses in certain industries.
Make sure to take a look at the different banks and their own requirements, and then you can move onto the next steps.
Registering a Taiwanese Company
Once all this is done, you will need to pay the fees and then pick a name for your company, then your agency will make sure that the name is not taken by another Taiwanese business.
Once you have that, you will have to send some documents to the agency.
These documents include:
- Proof of residence
- Information about your business
Foreign businesses may only incorporate once they have obtained approval from the Ministry of Economic Affairs Investment Commission (MOEAIC).
The Taiwan Company Act allows four kinds of company to be established:
- Subsidiary – usually for those who wish to be a limited company in Taiwan.
- Sole Proprietorship or Partnership
- Foreign Branch – Requires a certificate of recognition and branch office registration.
- Representative Office – For performing certain acts in Taiwan, but not transacting business.
Once your business is approved, you will be able to have your company registered, which involves providing a considerable amount of documentation, and must be done within a certain period of time, generally 15 days.
- Application Form
- Required approval letters issued from different authorities
- Articles of Incorporation
- Minutes of the incorporation meeting
- Minutes of the Board of Directors’ meeting
- Name, address, and number of shares for each shareholder
- CPA report to verify paid-in capital, any other required supporting documents, and an
- ID documents from incorporators, directors, and managers
- Consent letter from the chairman of the board of directors
- Incorporation Registration Form
You will also need to apply for tax registration for the State Tax Bureau and apply for Tax Code.
Ideally, the director of your company should appear in person at the State Tax Authority for identification purposes.
The entire process can take about three months.
If you intend to have staff in Taiwan you need to determine whether you will handle that employment internally or use a Global Employment Organization to handle payroll and Employer of Record responsibilities.
Do you need to be a Resident?
You don’t have to live in Taiwan to start a company, as most of the work can be done from your home country.
But if you do decide to live in Taiwan and start your company there, then you will need to get an Alien Resident Certificate (ARC) with your work permit.
The only other time that you would need to go to Taiwan is to open your business bank account (without a POA) and apply for tax registration.
Getting Insurance for Employees in Taiwan
Whether your company has five employees or five hundred, you will need to apply for national health insurance to keep your company safe from accidents or sickness.
If you have at least five employees, then you will need to also apply for labor insurance as well.
If this seems like a lot of applications, don’t worry, because application forms can be submitted and will be processed at the same time by the Labour Insurance Bureau.
You can find all of these applications at the bureau of labor insurance website, and once you complete the insurance application, it will be granted within seven business days.
One Last Audit
Finally, the last piece of paperwork that you need to turn in is a CPA Audit.
Inside Taiwan, you don’t have to worry about a capital requirement to start your business.
Instead, you just need to prove that the capital that you’ve invested will be able to cover the costs of the company.
Once all this is done, then your business is formed and you can focus on the benefits that working in Taiwan brings you!
The Benefits of Working in Taiwan
Working in Taiwan, whether you are going to come to the country or not, has a lot of benefits.
Some of the best benefits include:
1. A High-Tech Environment
Taiwan has a lot of manufacturing industries that are all focused on electronics, technology, software, and creation, so if your business is in the technical space, then you will fit right in.
Taiwan also has excellent manufacturing and building capabilities, so you should not have difficulty finding parts.
The supply chains and logistics in Taiwan are excellent.
2. Very Easy to Apply
As you’ve seen from the above section, investing in Taiwan and starting your own company in the country doesn’t take very long.
You can own your business 100%, you have the same rights as any local Taiwanese citizen, and if something goes go wrong you are guaranteed a fair trial without any corruption or problems.
3. A Central Location
Finally, Taiwan is very close to both the East and the West, where you can fly or sail to both the Western Pacific and China without long travel times.
If you want to sell your products internationally, then Taiwan is an excellent place to start.
Getting Your Business Started in Taiwan
Hopefully, this article helped to answer your questions about how to start a business in Taiwan.
It’s much easier than most people think.
If you want to start a new business in Taiwan or expand your business internationally, now you know how to get started.
Once the process is complete, the favorable business environment in Taiwan will make your efforts worthwhile.
Getting set up is the easy part. So what's the hard part?
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