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Taiwan Corporate Formation

Updated:2018-3-29 16:13:12    Source:www.tannet-group.comViews:512

Taiwan corporate formation is also known as Taiwan company establishment, Taiwan business incorporation and Taiwan business startup, etc. Taiwan is one of the world’s largest producers of computer-related products, and boasts an extensive, well-established network of industrial zones and a growing number of high-technology industry clusters, which are supported by high-quality human resources. And, Taiwan’s rise to prominence in the IT industry has sparked a growing industrial research and development sector.

Types of Taiwan Company 
There are several types of business entities that foreigners can own entirely in Taiwan, e.g.:
1. Company or corporation, Company Limited by Shares or Limited Liability Company;
2. Branch office;
3. Representative office  .

Most International entrepreneurs or companies entering the Taiwan market will set up a Limited Liability Company. If your paid in capital will be great or if you are taking in outside investors, you might choose Company Limited by Shares.

If you are planning to sell products in Taiwan and want to avoid the 20% tax on repatriation tax on profits, a Branch Office of your foreign entity might be for you. If you will not sell any products in Taiwan but will develop products or R&D, your best bet might be to set up a Representative Office of your foreign entity.

Registration Process of Taiwan Company
1. Filing the application form (If appointment of a Certified Public Accountant or solicitor as appointed agent, authorization letter is required);
2. Approval letter from other governmental bodies (Foreign investor should be approved by investment commission of MOEA, examination of capital);
3. Preliminary approval of company name and business registration;
4. Memorandum and Article of Association;
5. Agreement from shareholders (signed by shareholders);
6. Letter of consent to act as directors;
7. Information of shareholders (if included foreigner, a Chinese translation should be submitted) and the passport copies of shareholders and directors;
8. Report of Examination of capital issued by a Certified Public Accountants;
9. Authorization letter to Certified Public Accountants.

Tax System in Taiwan
All sales of goods and provision of services in Taiwan, as well as all imports of goods into Taiwan, are subject to Business Tax ("BT"). The "BT" is imposed under two systems: the VAT system (5%) and the Non-VAT system (0.1% - 25%). Apart from the "BT", the profit seeking enterprise in Taiwan also subject to 17% of corporate tax. If the company distributes profit to foreign shareholders, a 10% withholding tax will be charged on the dividends paid.

Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143512, or emailing to You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.

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