How to Establish a Foreign-Invested Company in Taiwan?

Both foreign companies looking to set up a subsidiary in Taiwan and foreign individuals establishing a sole proprietorship follow the same process. The key difference lies in the type of investor—either a foreign corporate entity or a foreign individual. A company can also be jointly established by both.

A foreign company setting up a subsidiary in Taiwan can choose between a limited company (有限公司) or a company limited by shares (股份有限公司). Subsidiaries and sole proprietorships in Taiwan have independent legal entity status, and if the business grows significantly, it can eventually be listed on the Taiwan Stock Exchange. Besides setting up a new company, foreign companies and individuals can also acquire shares or merge with an existing business in Taiwan, becoming either a corporate or individual shareholder. Regardless of the approach, an investment review must be submitted to the Investment Commission (IC), Ministry of Economic Affairs (MOEA) before proceeding. A subsidiary’s responsible person may be appointed externally. A sole proprietorship (limited company) must appoint a shareholder as the responsible person. To apply for a work permit for a foreign manager, the new company must have a minimum registered capital of NTD 500,000, with at least one-third of shares held by foreign investors. For renewing a foreign manager’s work permit, the company must achieve an annual revenue of at least NTD 3 million.

Reference: Must-Read for Foreigners Starting a Business in Taiwan: 50 Q&As on Applications, Funding, Taxation, and Work Permits

Establishing a Foreign-Invested Company in Taiwan

Options for Foreign Companies or Individuals Establishing a Business in Taiwan

1.設立子公司– A foreign company can establish a limited company or a company limited by shares in Taiwan. The subsidiary will have independent legal entity status and may go public on the Taiwan Stock Exchange if it expands significantly.

Setting Up a Personal Company– A foreign individual can set up a limited company in Taiwan, which will also have independent legal entity status.

Acquiring or investing in an existing company– Foreign companies or individuals can acquire shares or merge with an operational business in Taiwan, becoming either a corporate or individual shareholder.

Regardless of the chosen approach, all foreign investors must submit an investment review application to the Investment Commission, MOEA before proceeding.

Appointment of Responsible Persons-

1.Subsidiary companiesAny individual may be appointed as the responsible person.

2.Sole Proprietorship: A shareholder must be designated as the responsible person.

Work permit for foreign managers-

1.The new company must have a minimum capital of NTD 500,000, with at least one-third foreign ownership to apply for a foreign manager’s work permit.

2.To renew a foreign manager’s work permit, the company must achieve an annual revenue of at least NTD 3 million.

9 Key Steps to Setting Up a Foreign-Invested Company in Taiwan

Step One: Company Name Pre-check (Ministry of Economic Affairs)

Before establishing a foreign-invested company in Taiwan, the company name must be reserved and business activities selected through the Ministry of Economic Affairs (MOEA).

Step Two: Notarized Power of Attorney

If the investor does not hold a Taiwan residence permit, they must appoint a local agent to handle company registration, investment applications, and capital verification. The Power of Attorney must be notarized before submission. (If the investor has a Taiwan residence permit, this step can be skipped.)

Step Three: Foreign Capital Investment Review (Investment Commission)

The most crucial step for foreign investment in Taiwan is obtaining approval from the Investment Commission, MOEA to regulate inbound capital and business activities.

Step Four: Opening a Bank Account and Importing Funds

After passing the investment review, the investor must open a corporate preparatory account at a bank. If using foreign currency as capital, the funds must be remitted from abroad. If using NTD, proof of fund origin is required.

Reference: [National Immigration Agency: Foreign National ID Number Application & Guidelines]

Step Five: Investment Commission Fund Approval (Investment Commission)

After the foreign capital is imported, it needs to undergo fund approval by the Investment Commission.

Step Six: Verification of Capital by an Accountant

Once the funds pass the Investment Commission's approval, that process concludes, and the general company establishment application process begins. The next step is to engage an accountant to verify the capital by preparing a "capital verification visa report."

Step Seven: Company Registration Application

After obtaining the "capital verification visa report" and preparing other relevant company establishment documents, apply for company registration with the Commercial Register.

Step Eight: Business Entity (Tax Registry) Registration Application (National Taxation Bureau)

Upon completing the company establishment, the final government department involved is the National Taxation Bureau.

Step Nine: Application for Work Permit for Foreign Managers (Ministry of Labor)

If the foreign investor intends to operate the company in Taiwan,they must apply for a foreign manager’s work permit from the Ministry of Labor.Upon approval, they can apply for a residence permit from the National Immigration Agency.

Reference: [Ministry of Labor: Work Permit for Foreign-Invested Enterprises]