Can foreigners start a business in Taiwan?
Yes, foreigners can start and own businesses in Taiwan. Taiwan actively encourages foreign investment and entrepreneurship, especially in technology, innovation, and industries that contribute to the local economy.
Key facts
- Foreigners can own 100% of a company in most industries (some restricted sectors require government approval)
- You need an Alien Resident Certificate (ARC) obtained through your business to legally operate
- The process takes approximately 2–4 months from start to finish
- Taiwan ranks 15th globally in the World Bank's Ease of Doing Business index
- The government offers special visa programs for entrepreneurs (Gold Card, Entrepreneur Visa)
Restricted industries for foreign investment
Most industries are fully open, but some require prior approval from the Investment Commission (投資審議委員會):
- Telecommunications
- Broadcasting and media
- Agricultural land ownership
- Some financial services
- Industries involving national security
Prohibited industries for foreign ownership include power distribution and postal services. For a complete list, check the Investment Commission's website at www.moeaic.gov.tw.
What are the different company types available?
Choosing the right business structure is critical. Here are the main options for foreigners:
| Company Type | Minimum Capital | Liability | Best For |
|---|---|---|---|
| Company Limited by Shares (股份有限公司) | NT$500,000+ (foreign-owned) | Limited to investment | Most common for foreign entrepreneurs |
| Limited Company (有限公司) | NT$500,000+ (foreign-owned) | Limited to investment | Small businesses, fewer shareholders |
| Branch Office (分公司) | No minimum | Parent company liable | Foreign companies expanding to Taiwan |
| Representative Office (辦事處) | No minimum | Parent company liable | Market research only (cannot conduct business) |
| Sole Proprietorship (獨資) | None | Unlimited personal | Only for ROC nationals or APRC holders |
Company Limited by Shares is the most popular choice for foreign entrepreneurs because:
- Clear limited liability protection
- Easier to raise capital and add investors
- Required structure for most visa sponsorships
- Professional image for clients and partners
Important: While there's no legally mandated minimum capital for ROC nationals, the Investment Commission typically requires foreign-owned companies to demonstrate at least NT$500,000 (approximately US$15,000) in paid-in capital to approve the Foreign Investment Application (FIA). The actual requirement may vary based on your business plan and industry.
What is the step-by-step registration process?
Setting up a company in Taiwan as a foreigner involves several government agencies. Here's the complete process:
Step 1: Reserve your company name (1–3 days)
- Submit 3–5 name options to the Ministry of Economic Affairs (MOEA) via the one-stop shop website
- Names must include "有限公司" or "股份有限公司" in Chinese
- An English name is optional but recommended
- Fee: NT$150
Step 2: Foreign Investment Application (FIA) (2–4 weeks)
- Submit to the Investment Commission under MOEA
- Required documents: business plan, proof of capital source, company name reservation, passport copy, power of attorney (if using an agent)
- All foreign documents must be notarized and authenticated by a Taiwan representative office (TECO) in your home country
- Fee: Free
Step 3: Open a preparatory bank account (1–2 weeks)
- Open a "Preparatory Account for Company Under Formation" (籌備處帳戶) at a Taiwan bank
- Deposit the approved capital amount
- The bank will issue a capital verification certificate (驗資證明)
- Tip: Some banks are more foreigner-friendly — Cathay United, E.Sun, and CTBC are commonly recommended
Step 4: Company registration (1–2 weeks)
- Submit registration to the MOEA or your local city/county government
- Required: articles of incorporation, shareholder meeting minutes, director appointment, capital verification, registered address lease
- Registration fee: NT$1 per NT$4,000 of capital (minimum NT$1,000)
Step 5: Tax registration (1 week)
- Register with the local National Tax Administration (國稅局)
- Obtain your Unified Business Number (統一編號, UBN) — this is your company's tax ID
- Register for Business Tax (VAT) and Profit-Seeking Enterprise Income Tax
Step 6: Apply for your work permit and ARC (2–4 weeks)
- Apply for a work permit through the Ministry of Labor (for the foreign investor/director)
- Then apply for the ARC at the National Immigration Agency
- Your company must be registered and operational before you can apply
Step 7: Post-registration items
- Set up company chop (official stamp, 公司大小章) — essential for all official documents
- Open a formal company bank account
- Register for labor insurance and national health insurance for employees
- Set up accounting (hiring a local CPA/bookkeeper is strongly recommended)
Total timeline: 2–4 months from start to ARC in hand.
What about minimum capital requirements?
Official rules vs. practical reality
| Aspect | Details |
|---|---|
| Legal minimum for ROC companies | NT$0 (no legal minimum since 2009) |
| Practical minimum for foreign-owned | NT$500,000 (Investment Commission requirement) |
| Recommended for visa sponsorship | NT$500,000–1,000,000 |
| Amount to show "serious intent" | NT$1,000,000+ |
Why NT$500,000? The Investment Commission uses this as a benchmark to assess whether a foreign investment is "substantive." Amounts below this may face additional scrutiny or rejection.
Capital can be used after registration: Once your company is registered and the capital verification is complete, the money in the preparatory account is transferred to your company's operating account. You can use this capital for business expenses — it doesn't need to sit untouched.
Increasing capital later: If your business grows and needs more capital, you can go through a capital increase process (增資). This requires another Investment Commission approval for foreign-owned companies.
Foreign currency considerations: You can remit capital in foreign currency (USD, EUR, etc.) and convert to TWD at the bank. Keep all remittance receipts — you'll need them for repatriation of capital or profits later.
What are the tax obligations for businesses?
Understanding Taiwan's tax system is essential for running your business legally and efficiently.
Business Tax (營業稅) — Taiwan's VAT
| Item | Details |
|---|---|
| Standard rate | 5% |
| Filing frequency | Bi-monthly (every 2 months) |
| How it works | Charge 5% on sales, deduct 5% paid on business purchases, pay the difference |
| Invoice system | Must issue Uniform Invoices (統一發票) for all transactions |
| Exemptions | Some services (medical, education, financial) are exempt |
Profit-Seeking Enterprise Income Tax (營利事業所得稅) — Corporate Tax
| Taxable Income | Tax Rate |
|---|---|
| Up to NT$120,000 | Exempt |
| NT$120,001–NT$500,000 | Half of the amount exceeding NT$120,000 |
| Over NT$500,000 | 20% flat rate |
Withholding tax on dividends: When a company distributes profits to foreign shareholders, a 21% withholding tax applies. Tax treaties with certain countries may reduce this rate.
Other taxes and obligations
| Tax/Obligation | Details |
|---|---|
| Supplementary NHI premium | 2.11% on dividends/bonuses exceeding NT$29,500 |
| Labor insurance | Employer pays ~11% of employee salary |
| National Health Insurance | Employer pays ~5% of employee salary |
| Pension contribution (Labor Pension) | Employer contributes 6% of employee salary |
| Withholding tax on salary | Employer must withhold income tax from employee paychecks |
Accounting requirements
- All companies must maintain proper accounting books in Chinese
- Annual tax filing: Due by May 31 of the following year
- Strongly recommended: Hire a local Certified Public Accountant (CPA) or accounting firm. Costs range from NT$3,000–10,000/month for small companies. This is worth every dollar — Taiwan's tax and accounting rules have many nuances.
- The CPA will handle: monthly VAT filing, annual tax return, financial statements, payroll tax, and government reporting
What visa options exist for entrepreneurs?
Taiwan offers several pathways for foreign entrepreneurs to legally reside and work.
1. Investor/Entrepreneur Work Permit + ARC
The standard pathway if you're setting up a company:
| Requirement | Details |
|---|---|
| Minimum investment | NT$500,000+ |
| Work permit | Apply through Ministry of Labor after company registration |
| ARC validity | 1–3 years, renewable |
| Path to APRC | After 5 continuous years of legal residence |
| Can hire foreign employees | Yes, after meeting capital and revenue thresholds |
2. Entrepreneur Visa (創業家簽證)
Designed for startup founders, with lower capital requirements:
| Requirement | Details |
|---|---|
| Eligibility | Must meet at least ONE of 8 qualifying criteria (see below) |
| Initial visa | 1 year, renewable |
| Capital requirement | Varies by qualifying criteria |
| Conversion to ARC | Can convert to regular work-based ARC after meeting milestones |
Qualifying criteria (meet at least one):
- Accepted into a Taiwan government-approved incubator or accelerator
- Received NT$2 million+ in funding from Taiwan government programs
- Obtained a patent in Taiwan or major markets (US, EU, Japan)
- Participated in a recognized international startup competition
- Invested NT$1 million+ in a registered Taiwan company
- Graduated from a designated Taiwan university entrepreneurship program
- Received NT$2 million+ in venture capital investment
- Approved by government review committee based on innovation potential
3. Employment Gold Card (就業金卡)
A premium 4-in-1 card (work permit + work visa + resident visa + re-entry permit):
| Requirement | Details |
|---|---|
| Eligibility | Outstanding professionals in 8 designated fields |
| Validity | 1–3 years |
| Key benefit | No employer sponsorship needed — you can work for anyone or yourself |
| Monthly salary threshold | NT$160,000+ (or recognized expertise) |
| Application fee | NT$3,500 (1 year) to NT$5,500 (3 years) |
| Tax benefit | First 3 years: salary over NT$3 million is 50% exempt from income tax |
Designated fields: Science & Technology, Economy, Education, Culture & Arts, Sport, Finance, Law, Architecture. "Economy" is the broadest category and covers most entrepreneurs.
The Gold Card is the most attractive option if you qualify, because:
- No need to set up a company first
- Freedom to work for yourself, freelance, or be employed
- Significant tax benefits in the first 3 years
- APRC eligibility after 3 years of continuous residence
- Apply online at goldcard.nat.gov.tw
Frequently asked questions
How much does it cost in total to set up a company?
Typical costs for a foreign-owned Company Limited by Shares:
| Item | Cost |
|---|---|
| Company name reservation | NT$150 |
| TECO document authentication (in home country) | US$15–50 per document |
| Registered address (if using a virtual office) | NT$3,000–8,000/month |
| Company chop (stamps) | NT$500–2,000 |
| Company registration fee | NT$1,000–5,000 |
| CPA/agent fees for setup assistance | NT$15,000–40,000 |
| Total (excluding capital) | NT$25,000–60,000 |
Many entrepreneurs use a setup agent (公司登記代辦) who handles all paperwork for NT$20,000–40,000. This is highly recommended for first-time founders unfamiliar with Taiwan's bureaucracy.
Do I need to speak Chinese to run a business?
Not strictly, but it helps enormously. All government documents, tax filings, and official correspondence are in Chinese. You can hire bilingual staff or work with an English-speaking CPA and lawyer. In Taipei's tech and startup community, English is widely used. Outside Taipei, Chinese becomes more necessary for day-to-day business operations.
Can I run a business on a visitor visa or tourist visa?
No. You cannot legally conduct business activities on a tourist/visitor visa. You need either a work permit + ARC (through your company), an Entrepreneur Visa, or a Gold Card. Running a business without proper authorization can result in fines and deportation.
What support is available for foreign startups?
Taiwan has a strong startup ecosystem:
- Taiwan Startup Terrace (林口新創園): Government-backed incubator in Linkou, New Taipei City. Free office space and support for qualified startups.
- Startup Island TAIWAN: Government initiative connecting foreign founders with resources
- Taiwan Tech Arena (TTA): Startup hub in Taipei with mentorship, funding connections, and events
- Small Enterprise Innovation Research (SBIR): Government grants for R&D projects
- National Development Council (NDC): Oversees startup policies and can provide guidance
- Meet Taipei: Annual startup festival connecting founders with investors
Can I hire foreign employees?
Yes, but with conditions:
- Your company must have paid-in capital of at least NT$5 million to hire foreign employees (or meet alternative revenue/tax payment thresholds)
- Each foreign employee requires an individual work permit from the Ministry of Labor
- Salary must meet minimum thresholds (currently NT$47,971/month or NT$31,520/month for certain skilled workers)
- Ratio requirements may apply (depending on industry, you may need a certain number of local employees per foreign employee)
What about freelancing without a company?
If you want to freelance in Taiwan, your legal options are:
- Gold Card: Best option — work for yourself legally without a company
- Sole proprietorship: Only available to APRC holders or ROC nationals
- Register a company: The standard route for non-APRC foreigners
- Work for a foreign client remotely: A gray area — technically you need work authorization, but enforcement is minimal for digital nomads. Taiwan has been discussing a dedicated digital nomad visa but has not implemented one as of 2026.