How to Establish a Branch Office in Taiwan?

Foreign companies can set up a subsidiary in Taiwan or choose to establish a branch office. A branch office is subordinate to the foreign parent company, does not have independent legal status, but is legally qualified to conduct business in Taiwan. If the Taiwan branch office makes a profit after paying corporate income tax, the profit can be remitted back to the parent company. However, if the Taiwan branch office encounters operational issues, the foreign parent company will bear joint liability. The competent authority for establishing a Taiwan branch office is the Department of Commerce, Ministry of Economic Affairs (MOEA). However, if the company has Chinese capital or background, it must undergo an investment review by the Investment Commission.

Once a Taiwan branch office is established, it may apply to the Ministry of Labor for a work permit for one foreign managerial employee, provided the capital amount is at least NT$500,000. To continue hiring, the annual revenue of the Taiwan branch must reach at least NT$3 million.

Advantages and Disadvantages of Establishing a Taiwan Branch Office

⭕Advantages:A branch office is an extension of the foreign parent company. If the branch office generates profit, after paying the 20% corporate income tax, the remaining profit can be directly remitted to the foreign parent company. This is a key tax advantage of branch offices.

❌Disadvantages: A branch office cannot have other shareholders; it can only be funded by the foreign parent company. A branch office does not enjoy the same rights and obligations as an independent company, such as the ability to go public in Taiwan or benefit from certain tax incentives. Furthermore, if the Taiwan branch office faces operational issues, the foreign parent company will bear joint liability.

參考文章：

1.子公司和分公司的優劣比較

2.外國公司在台設立子公司、分公司和辦事處差異比較

Required Documents for Establishing a Taiwan Branch Office

Application form (If appointing an accountant or lawyer as an agent, an authorization letter must be attached.)
Copy of approval letter from relevant authorities (If prior approval is required by the competent authority, a copy of the approval document must be submitted; otherwise, it is not needed.)
"Authorization letter for the designated responsible person in Taiwan" and "Identification document of the designated responsible person in Taiwan."民國境內指定之負責人身份證明文件」
Authorization letter for the branch office manager.
Identification document of the branch office manager (For ROC nationals, a copy of their National Identification Card is required; for foreign nationals, a copy of their residence permit or passport with address and signature/stamp is required.)
Copy of the property owner’s consent letter and ownership certificate (If the business location is rented, a lease agreement must be provided instead of the consent letter.)
Two copies of the branch office registration form.
Registration fee: NT$1,000 per branch office, plus NT$1 per NT$4,000 of allocated operating capital in Taiwan (minimum NT$1,000). The total fee is NT$2,000.元，並按其專撥在中華民國境內營業所用資金每新臺幣四千元一元計算；未達新臺幣一千元者，以新臺幣一千元計算。總計兩千元

Source: Department of Commerce, Ministry of Economic Affairs

10 Steps to Establish a Taiwan Branch Office

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

When a foreign company intends to establish a branch in Taiwan, the first step involves checking the availability of the branch office name with the Ministry of Economic Affairs. The name of the branch office should include the country of origin of the parent company. For example, a branch from the United States should be named "American XX (Limited) Company Taiwan Branch," and a branch from Hong Kong should be named "Hong Kong XX (Limited) Company Taiwan Branch."

Step Two: Establishment and Investment Approval of Foreign Company's Branch in Taiwan (Bureau of Foreign Trade, Ministry of Economic Affairs)

For a foreign investment company to establish a branch in Taiwan, an application must be submitted to the Bureau of Foreign Trade, Ministry of Economic Affairs. This process involves submitting various documents and detailed preparations.

Step Three: Opening a Preparatory Account for the Branch at a Bank

Upon receiving approval from the Bureau of Foreign Trade, the branch office's responsible person receives relevant documents. Following the instructions in these documents, the branch office's head must go to a bank to open a preparatory account.

Step Four: Importing Funds

After opening the preparatory account, funds can be imported according to the capital amount set during the branch's establishment.

Step Five: Verification of Funds by an Accountant

Once the capital is imported into the preparatory account, the next step is to engage an accountant to verify the funds and create a "Capital Verification Visa Report."

Step Six: Fund Approval (Bureau of Foreign Trade, Ministry of Economic Affairs)

After applying for branch establishment and receiving approval from the Bureau of Foreign Trade, within thirty days, a "supplementary correction" operation must be conducted. This involves proving that the foreign company has accurately imported the funds. After the funds are imported, an application for "supplementary correction" (newly established approved capital) must be submitted to the Bureau of Foreign Trade.

Step Seven: Application for Business (Tax Registry) Registration (National Taxation Bureau)

經濟部商業發展署收到「補正申請書」後，資金審查沒問題，就會正式核准分公司設立通過，並寄發核准函。收到核准函後即可向公司所在地之國稅局申請營業（稅籍）登記。

Step Eight: Application for Purchase of Invoice Certificate (National Taxation Bureau)

After obtaining approval for business registration from the National Taxation Bureau, the branch office's responsible person must visit the bureau to apply for the purchase of an invoice certificate.

Step Nine: Transitioning the Preparatory Account to an Official Branch Account

With the approval letters from the Bureau of Foreign Trade and the National Taxation Bureau, the responsible person can visit the bank to transition the preparatory account into an official branch account.

Step Ten: Registration as an Import/Export Manufacturer (Bureau of Foreign Trade, Ministry of Economic Affairs)

If the branch office intends to engage in import/export activities, it must apply for import/export registration with the Bureau of Foreign Trade, MOEA. The English name must be pre-approved online, which takes about two hours if there are no duplicates.

Flow chart for foreign companies to establish Taiwan branches

Things to note when setting up a Taiwan branch

At Least Two Visits to Taiwan by the Responsible Person

To open a preparatory account, banks in Taiwan require the branch office manager to be physically present. Additionally, after the branch office is established, the manager must report to the National Taxation Bureau to obtain an invoice certification. By following these steps and ensuring all required documents are prepared, foreign companies can successfully establish a branch office in Taiwan and operate legally and efficiently.

What clients say about us

“Through Taipei Entrepreneur Center’s explanation, I now fully understand how to set up a company as a foreigner.”

Alva

“They are proficient with regulations and procedures and have got answers to all our questions. No additional charges. Highly recommended!”

Abraham

「我們透過台北創業家成立台灣分公司，過程相當順利。」

Samantha