BusinessTaiwanLatest Guide To Setup Limited Company In Taiwan 2022

September 27, 2021by Tetra Consultants0
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As a foreign investor or a business owner, it is imperative for you to understand how to setup limited company in Taiwan. Once you understand this, the process will be smooth and hassle-free. With Tetra Consultants on your side, you can give your time and energy to the needs of your business while leaving the Taiwan company registration process to us.

In this article, we have presented a guide to setting up company in Taiwan. We, at Tetra Consultants, have prepared this guide with careful consideration, highlighting all the requirements and regulations of incorporating a company and the steps to do the same. 

How to register and setup limited company in Taiwan?

Step 1: Reserve your preferred company name

Step 2: Ensure that you meet all the requirements

Step 3: Apply for additional approval

Step 4: Open a corporate bank account

Step 5: Apply for Investment Capital Examination

Step 6: Register your business

Step 7: Register for tax

Step 8: Staying compliant with the local laws

setup-limited-company-in-2021

[ps2id id=’step1′ target=”/]Step 1: Reserve your preferred company name

  • You are required to search for the availability of your preferred company name with the Department of Commerce of the Ministry of Economic Affairs (MOEA).
  • Once you have confirmed its availability, you are required to apply for the registration of the chosen name.
  • Tetra Consultants can help in doing the same for you and will assist in reserving your company name for up to 6 months, as per your requirements.

[ps2id id=’step2′ target=”/]Step 2: Ensure that you meet all the requirements

  • As per the Taiwan Company Registry, the following requirements are to be met:
    • At least one shareholder
    • At least one director
    • Registered office address
    • No minimum capital
    • At least one supervisor (provided the company is limited by shares)
  • Our team of experts at Tetra Consultants will ensure that you are aware of all the requirements and assist you in meeting them if needed. 
  • We will provide you with a local resident public officer who is required to act on behalf of the company. This individual will need to submit the relevant documents to the respective authorities during the setting up process of the company. Moreover, they will also be responsible for the timely submission of the financial statements and corporate tax returns of the company.
  • All the documents are required to be in Chinese which is the official language in Taiwan. Therefore, we will provide you with a translator, if required.

[ps2id id=’step3′ target=”/]Step 3: Apply for additional approval

  • If you are starting business in Taiwan as a foreigner, you are required to apply for foreign investment approval with the Investment Commission of the Ministry of Economic Affairs (MOEAIC). This is done to ensure that the proposed investment is in accordance with the government regulations and policies. Tetra Consultants will assist you in submitting this application along with the required documents which include:
    • Confirmation of reservation of company name
    • Power of Attorney allowing an individual to represent the corporate investor
    • Copy of passport from a corporate representative
  • If you are looking to start an import and export business, you are required to apply for your preferred English company name registration and Import and Export registration. Tetra Consultants will assist you in submitting this application with the Bureau of Foreign Trade of the Ministry of Economic Affairs (MOEA). 

[ps2id id=’step4′ target=”/]Step 4: Open a corporate bank account

  • You must then open a corporate bank account to deposit the paid-up capital decided by your business. The bank will confirm the receipt of the same.
  • Tetra Consultants will leverage our extensive banking network and assist you in opening a corporate bank account. We will assist you in setting up business accounts with banks such as the Bank of Taiwan, CTBC Bank, and more.

[ps2id id=’step5′ target=”/]Step 5: Apply for Investment Capital Examination

  • Once confirmation of receipt of capital is made, Tetra Consultants will submit the relevant documents to receive approval from the Investment Commission. The documents include:
    • Copy of bank account passbook or statement
    • Copy of bank’s Foreign Exchange Memorandum

[ps2id id=’step6′ target=”/]Step 6: Register your business

  • On receipt of the due diligence documents including the personal details of the various stakeholders of the company, Tetra Consultants will assist in the preparation of the required incorporation documents including:
    • the Article of Incorporation
    • Consent letter from the Chairman of the Board of Directors
    • Any approval letters from relevant authorities if needed
    • Power of Attorney documents
    • Minutes of the shareholders meeting, and more
  • You must then submit the same to the Taiwan Department of Commerce to complete the set up process of your company.
  • Once the documents are submitted you will receive a Certificate of Incorporation, Memorandum and Articles of Association, and more as confirmation of registration of the company. 
  • If needed Tetra Consultants will assist you in translating these documents, notarising them in the court, and then sending these documents to you to your chosen location through courier.

[ps2id id=’step7′ target=”/]Step 7: Register for tax

[ps2id id=’step8′ target=”/]Step 8: Staying compliant with the local laws

  • Once the set up process of the company is completed and the business is operational, you must ensure that your business remains compliant with the government regulations.
  • In order to remain compliant, you must meet the accounting and tax obligations of your business, which include obtaining any required licenses, annual tax return filing, and timely payments of taxes.

Accounting and Tax Obligations:

  • According to the Taiwan Taxation Administration of the Ministry of Finance, all Limited Companies with income greater than TWD 500,000, are subjected to a 20% Corporate Income Tax.
  • The government also imposed a 21% Withholding Tax on dividends of the company and a 5% tax on undistributed profit.
  • Businesses incorporated in the Taiwan Free Trade Zone are not subjected to Corporate Income Tax duties if approval is received.
  • Additional tax benefits and incentives are provided to businesses to attract foreign investment in Taiwan.
  • You are required to submit your company’s financial statements that are to be audited by a certified accountant to the Financial Supervisory Commission (FSC).
  • You are supposed to file annual corporate tax returns.

Our team of experts at Tetra Consultants will complete the set up process of the company within 3 weeks upon engagement. The bank account opening should take an additional 4 weeks. Therefore, your business will be operational within 7 weeks. The cost of this entire process depends on the services you require from us and also includes any government fees required to be paid during this set up process.

Looking to setup limited company in Taiwan?

As a foreign investor or business owner, you can setup limited company in Taiwan using the steps mentioned above. We, at Tetra Consultants, understand that this is a difficult process and would, therefore, like to offer you our services. Our service package includes planning and strategizing with our international clients to understand more about the business and their long-term goals to make any suggestions on how to go about the incorporation process, assisting them through the incorporation process which can be a hassle if you do not know the steps, opening a corporate bank account for your newly incorporated firm by leveraging our banking networks, and ensuring that you are compliant with the government regulations even after the Taiwan business registration process is complete.

Contact us now to find out more about the comprehensive range of services we offer to incorporate a business in Taiwan, and our team of experts will revert within the next 24 hours.

Tetra Consultants

Tetra Consultants is the consulting firm that works as your advisor and trusted partner in your business expansion. We tell our clients what they need to know, instead of what they want to hear. Most importantly, we are known for being a one-stop solution for our valued clients. Contact us now at enquiry@tetraconsultants.com for a non-obligatory free consultation. Our team of experts will be in touch with you within the next 24 hours.

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