How to Set Up a Company in Taiwan in 2025

Taiwan is one of Asia’s most innovative economies, known for its world-class semiconductor industry, strong IP protections, and growing role in global supply chains, making it increasingly attractive to startups. With a strategic location and a thriving digital and manufacturing ecosystem, it’s no surprise that more entrepreneurs are looking to establish a business presence there.

That said, starting a business in Taiwan still involves multiple agencies, local-language documentation, and capital verification steps that can be difficult to manage without support on the ground.

For this reason, some entrepreneurs also explore jurisdictions with simpler procedures and faster setup, such as Hong Kong, when planning their Asia strategy.

Whether you’re building a startup or expanding from abroad, this guide will help you understand how to start a company in Taiwan as a foreigner, including the available entity types, legal requirements, and step-by-step instructions to get started.

Before registering your company, you’ll need to choose the right business structure.

For most foreign founders, the best options are either a limited company (subsidiary) or a branch office, as both structures allow full foreign ownership.

• A limited company (subsidiary) is generally preferred if you want a separate legal entity, limited liability, and easier access to local hiring, tax filings, and doing business in Taiwan.
• A branch office may suit foreign companies expanding their global presence, but it lacks legal independence and may expose the parent company to liability.

Sole proprietorships and representative offices are only suitable for specific use cases (e.g. local freelancers or small business owners) and are rarely ideal for growth-focused foreign businesses.

Below is a clear six-step guide tailored to foreign entrepreneurs, combining official procedures with practical considerations you’ll encounter along the way.

Start by reserving your company name and submitting your proposed business scope to the Ministry of Economic Affairs (MOEA). This is the first formal step in the company registration process.

You can submit your application online via the MOEA One-Stop Portal. Once approved, you’ll receive a name pre-approval certificate, which is required before proceeding with investment approval and registration.

There are a few things to take note of during this step:

1. You may submit up to five proposed company names in a single application.
2. The name reservation is valid for six months, with a one-time extension of one month available.
3. Company names must be in Traditional Chinese, though an English version can also be registered for reference.
4. Your business scope must align with MOEA’s industry classification system, as it may affect licensing or regulatory approvals later.

For the full list of rules and character restrictions, refer to MOEA’s official company naming guidelines (English).

Once your company name is pre‑approved, the next step is to obtain foreign investment approval from the Department of Investment Review under the MOEA. This step is mandatory if any shareholder is a non-Taiwanese individual or foreign entity.

You’ll need to prepare and submit the following documents:

• Application Form A: The official form used to request foreign investment approval, detailing your ownership structure, capital amount, and business plan.
• Investor identification documents: Typically, a passport for individuals or a certificate of incorporation for companies.
• Power of Attorney (POA): Required if you are authorising a local agent to act on your behalf.

Once approved, you’ll receive official confirmation allowing you to inject capital into your planned Taiwan business entity.

The next step is to open a preparatory bank account in Taiwan under the reserved company name. This account is used to receive your full registered capital, which must be transferred from an overseas account.

To open the account, either you or a local representative acting under a notarised POA will need to present the required documents at a local bank branch. These typically include the company name approval letter, foreign investment approval, identification documents of the legal representative, and draft incorporation documents such as the Articles of Incorporation.

Banks in Taiwan are subject to strict AML and KYC procedures, so account opening may take anywhere from a few days to several weeks, depending on the bank’s internal policies and your company profile.

Once the capital has been deposited and converted to NT dollars, the bank will issue an inward remittance certificate, which is required for the capital verification process by a licensed CPA.

Once your registered capital has been deposited into the preparatory bank account, a licensed CPA in Taiwan must conduct a capital verification audit.

The CPA will confirm that the full amount has been received from overseas and meets MOEA requirements under Taiwan’s regulations governing independent capital audits, then issue a Capital Verification Report.

You’ll then need to submit a complete set of incorporation documents, including:

• Articles of Incorporation
• Minutes or resolutions documenting the appointment of directors/shareholders
• Personal details and identification of shareholders, directors, and managers
• Registered office address evidence, such as lease agreements or tax receipts
• Capital Verification Report issued by the CPA
• Power of Attorney, if someone else (e.g. CPA or agent) is filing on your behalf

All documents must be either in Traditional Chinese or accompanied by certified translations.

Once submitted, the incorporation application is reviewed by MOEA and, if accepted, your company will be officially registered and assigned a Unified Business Number (UBN), an 8-digit identification number for tax registration and invoicing purposes.

Once your company is officially incorporated, you’ll need to complete several post-registration steps to start operations legally.

First, you must register your UBN with the National Taxation Bureau to comply with tax reporting obligations. If your business is subject to VAT, registration for VAT can also be completed during this process.

Depending on your industry, you may also need to apply for:

• Import/export registration with the Bureau of Foreign Trade (BOFT)
• Factory registration or product-specific approvals
• Business permits are regulated by local or central authorities

In addition, companies intending to hire employees must register for labour insurance, national health insurance, and other employment-related contributions.

Finally, you’ll need to open a formal corporate bank account. This is the account your business will use for regular transactions, payroll, and client payments. You can either close or consolidate your preparatory account into the corporate account.

Taiwan offers access to a strong tech supply chain, with Taipei serving as a key business hub in the region. But for foreign investors, setting up a company there can involve more time, paperwork, and language-related hurdles than expected.

Capital verification, multiple agency approvals, and local-language documentation add complexity. And navigating the system, especially without Mandarin skills or a local presence, can be a challenge.

That’s why many entrepreneurs opt for Hong Kong as their base in Asia.

As one of the best countries to start a business as a foreigner, Hong Kong combines ease of setup, low tax burdens, and full ownership rights in a jurisdiction built for international business. It’s particularly suited for startups and SMEs that want global reach with fewer administrative burdens.

Here’s how Hong Kong compares to Taiwan for business incorporation:

• Fast company setup: Incorporation typically takes 3 to 5 working days.
• Remote application: Even as a non-resident, you can register your company from abroad without ever needing to travel to Hong Kong.
• Lower tax rate: Hong Kong’s two-tier profits tax (8.25% and 16.5%) is lower than Taiwan’s 20% corporate income tax, and Hong Kong doesn’t apply a surtax on undistributed profits.
• English-language system: English is an official language in Hong Kong and is used in all legal, banking, and government documents.
• Simpler capital requirements: Unlike Taiwan, Hong Kong doesn’t require capital verification by a CPA or initial capital deposit to start a company.
• International credibility: Operate in a recognised global hub with access to China, the Asia-Pacific region, and beyond.

At Statrys, we specialise in helping foreign entrepreneurs set up their company in Hong Kong, 100% online and with full support. From company registration and secretarial services to a multi-currency business account, we provide everything you need to get started and grow your business across Asia.