Guide for Hong Kong people to set up a company in Taiwan: company application process, notes and fees in one article (applicable to starting a business or immigrating to Taiwan)
Hong Kong and Macao people to open a company in Taiwan need to be approved by the Investment Commission in the capacity of an overseas Chinese investor, the proposed capital of at least 500,000 Taiwan dollars, and choose a limited company and other types, the whole process takes about 2 months, professional agents can effectively simplify the application process.
What Hong Kong and Macau people need to know to start a company in Taiwan
Hong Kong and Macao residents are regarded as expatriates
Hong Kong and Macao residents who set up companies in Taiwan are subject to the existing regulations.Foreign Investment OrdinanceIn addition, the status of a foreign investor is categorised as "Overseas Chinese Investment" (OCI). They have to go through the foreign investment channel and submit the "Overseas Chinese Investment" form.Application for Initial Investment by Overseas Chinese and Foreigners"The next step in the establishment process can only be continued with the consent of the Investment Commission.
Hong Kong and Macao residents need to go through the Investment Commission (IC) of the Ministry of Economic Affairs (MOEA).
All Hong Kong and Macao residents must obtain approval from the Investment Commission of the Ministry of Economic Affairs (the Investment Commission of the Ministry of Economic Affairs (MOEA), which has been renamed as the Investment Commission) before registering their companies. The application includes information on the investor, source of capital and business items, etc. Only after approval can the company proceed with the subsequent capital verification and establishment process.
Apart from that, even after a company has been set up for business, if there is a need to increase or decrease the number of business items or the amount of capital, it is necessary to seek the approval of the Investment Commission before doing so.
What is the amount of capital required for Hong Kong and Macao residents to set up a company?
This is the biggest difference from a Hong Kong company, as capital is required to set up a company in Taiwan. Although there is no minimum capital requirement for the establishment of a limited company in Taiwan, it is recommended to have at least Over NT$500,000This is in line with the Board's determination of operational reasonableness and to facilitate subsequent immigration and work visa applications.
What is the amount of capital required to apply for immigration to Taiwan?
If you wish to apply through entrepreneurshipinvestment immigrationIn addition, the Company is required to meet the investment amount requirement. According to the criteria of the Investment Commission of the Executive Yuan, the amount of capital needs to meet the requirement of Over NT$6 million(approximately HK$1.5 million) and have been in operation for three years before they are eligible to apply for investment immigration. For those who wish to apply forEntrepreneurial MigrationIn addition, it is proposed that a capital of $2 million and three years of operation will be required for the application.
What types of companies are available for Hong Kong and Macau residents?
There are two types of companies that can be opened in Taiwan: those that come to Taiwan with capital from their parent company and those that come to Taiwan to start their own business.
Hong Kong and Macao People's Company in Taiwan: Starting a Business in Taiwan
limited company
A limited company is one of the most common choices for Hong Kong and Macao residents to set up a company in Taiwan. It can be formed by only one or more shareholders. The company has the status of an independent legal entity, and shareholders are only responsible for the company's debts up to the amount of their capital contribution, which can effectively reduce personal financial risks.
This type of company has a moderate threshold and high operational flexibility, which is suitable for both small-scale entrepreneurship and gradual business expansion. It can also be used as a basic company structure for applying for a manager's work permit and Taiwan investment immigration.
Whether you are starting a business or emigrating to Taiwan, choosing the form of a limited company is a moderately difficult option with a high success rate.
corporation
A company limited by shares is established by two or more shareholders, a government agency or a legal person, and the entire capital is divided into shares. Each shareholder is liable to the company only for the shares he or she has subscribed to, with a definite capital contribution and proportionate ownership.
This type is suitable for enterprises with larger capital, long-term operation and listing plans. Although the set-up process is a little more complicated than a limited company, it is still an ideal structure to build a professional corporate brand, attract investment or go public in the future.
The above two types of companies are more common and not too difficult to apply for. It is recommended to seek professional advice to understand the requirements and procedures before preparation to increase the success rate.
OMELCO
A dual company is established by at least one shareholder with unlimited liability and one shareholder with limited liability. The unlimited shareholder is fully and jointly liable for the debts of the company, while the limited shareholder is liable only for the amount of his capital contribution.
Whilst this is feasible institutionally, it is hardly used by Hong Kong and Macau people in setting up companies due to the complexity of the demarcation of responsibilities and the rarity of its practical application.
Symbol
A firm is the simplest form of entrepreneurship, with simple procedures and low costs, and is often found in small local economy shops or stalls. However, as it is a personal business, its name cannot be duplicated within the county or city, and it does not have the status of an independent legal entity, so the person in charge has to bear unlimited responsibility for all business behaviours.
In case of debt problems arising from poor business operation, the person in charge will have to settle the debt with his/her personal assets, which is a relatively high risk.
This type is not suitable for Hong Kong and Macau investors who wish to expand or apply for immigration visas, and generally speaking, the success rate of Hong Kong and Macau people or foreigners in applying for line numbers is not high.
Unlimited
An unlimited company is a partnership, which needs to be set up by more than two persons, and all shareholders (partners) have unlimited joint and several liability for the company's debts. In the event of a loss or debt dispute, the partners will be liable to pay with their personal assets, which is a relatively high risk.
This type of company is less common for Hong Kong and Macao people to start a business in Taiwan because of the heavy legal liabilities and the lack of corporate independence.
In contrast, most Hong Kong and Macau investors tend to choose "limited company" or "company limited by shares" to set up a full-fledged enterprise in the form of sole proprietorship or limited liability, so as to reduce legal and financial risks.
Hong Kong and Macao people opening companies in Taiwan: using the parent company's capital to come to Taiwan.
associated company
Subsidiaries are legal entities established by the parent company and registered in Taiwan. It operates separately from the parent company, is responsible for its own management and financial accounts, and has an independent legal status. If a Hong Kong or Macau company chooses to set up a subsidiary to operate in Taiwan, the subsidiary can be listed on the Taiwan Stock Exchange if its business scale expands in the future.
branch offices
A branch is established in Taiwan with capital from the parent company. Although it can engage in business operations, tax filing and invoicing in Taiwan, it does not have the status of an independent legal entity and is an extension of the parent company. The establishment of a branch is not subject to the capital examination of the Investment Commission, and its application is managed by the Department of Commerce of the Ministry of Economic Affairs (MOEA).
Since the branch is subordinate to the parent company, the parent company is jointly and severally liable for any debts incurred during the period of operation in Taiwan, and the name of the branch is required to indicate its subordinate relationship and place of establishment.
The branch cannot be listed in Taiwan. If there is a capital market plan in the future, it is suggested that it would be more appropriate to choose to establish a "subsidiary".
Office
The office has no legal personality or business qualification. Its main function is to serve as the administrative contact window for the parent company in Taiwan and to assist in the handling of various non-profit businesses.
The office cannot engage in sales, invoicing or collection activities and is only suitable for initial market observation or technical support.
When setting up an office, the name should indicate the place of affiliation and the parent company. For example, the office set up by a Hong Kong company should be called "Taiwan Office of Hong Kong XX (Holdings) Limited".
What are the requirements for the person in charge of opening a Taiwan company?
The company must have a person in charge, who may be a Hong Kong or Macau resident or a person with residency status in Taiwan. If the person in charge is a foreigner, he/she may be required to apply for a work permit or residency in Taiwan.
What are the requirements for setting up a company name in Taiwan?
When setting up a company in TaiwanLegal exclusivity of company nameIf the name has already been used or is too similar, it will affect the incorporation process or even be returned. Therefore, it is recommended to think of a few alternative names and make enquiries before setting up a company.
It is recommended that you go to theMinistry of Economic Affairs' Company Name and Business Pre-Search Assistance Query System"Enter 1 to 5 sets of candidate names for searching and sort them according to your preference. After confirming that no one is using the system, go to the "One-stop Online Application System for Companies, Businesses and Limited Partnerships" to submit a formal pre-screening application.
Is there any restriction on the business items for opening a company in Taiwan?
When setting up a company in Taiwan, you need to fill in the business items, most of the industries can be freely registered, only some items areProhibited Overseas InvestmentApart from that, we can also pay attention to the number of business item codes. Apart from that, we can also pay attention to the number of the business item code. If the code ends with "1", it means that the business is a licensed business and requires the approval of certain departments or organisations before application.
It is proposed to register about 10 to 20 items, including the main and expected expansion of the business.
In practice, some people who are not familiar with the process of applying for a company by Hong Kong and Macau residents may suggest adding the following to the list of business itemsZZ99999In addition to the permitted business, the applicant may engage in business not prohibited or restricted by laws and regulations" code, which retains the flexibility of business operation and exempts the procedures for future changes. However, due to the recent stringent scrutiny by the Investment Commission on the business content of Hong Kong and Macau applicants, the inclusion of this business item may increase the approval time or difficulty, and it is recommended that professional organisations specialising in the establishment of Taiwan companies by Hong Kong and Macau applicants should be consulted.
In addition, the first five items of business will have an impact on the tax classification, and it is appropriate toItems with lower tax rates or with low audit risk are ranked first.This will help to reduce the tax risk.
Setting up a company in Taiwan
Hong Kong and Macao residents who plan to set up a limited company in Taiwan usually do so through local accounting firms, bookkeeping firms or local professional agents in Hong Kong. It is recommended to confirm whether the registered address, responsible person, capital and all relevant documents are available before application, and to follow the following procedure to complete the establishment process step by step:
Step 1: Company Name Pre-check (Ministry of Economic Affairs)
The company name must be registered in Chinese and indicate the type of industry and location, e.g. "Taiwan XX Information Co. Applicants are required to conduct a "Pre-check of Company Name and Business Items" through the website of the Department of Commerce, Ministry of Economic Affairs to ensure that the name is not duplicated and complies with the naming regulations. After passing the check, the name can be reserved for subsequent registration.
Step 2: Notarisation of Powers of Attorney and Documents (if required)
If an agent is acting on behalf of the investor, or if the investor from Hong Kong or Macau is not in Taiwan, notarisation of the power of attorney, a copy of the passport and other supporting documents is required. For Hong Kong and Macau, the notarisation can be done through a China-Appointed Attesting Officer (CAA), and can be used after being certified by the SEF.
Step 3: Filing a Foreign Investment Application (Investment Review Board)
Hong Kong and Macao residents are considered to be "Overseas Chinese" and must pass the "Overseas Chinese" test before the formal establishment of the company.Investment Review Division (IRD), Ministry of Economic Affairs (MOEA)The application form must be completed and the following documents must be submitted. You must complete the investment application form and submit the followingDocuments related to investment application：
- Proof of investor's identity
- 1 original and 1 photocopy of "Application for Investment".
- Detailed Investment Plan
- Photocopies of the Pre-Checklist
- Proof of Agent's Identity
- Original Power of Attorney
Step 4: Open a Preparation Account and Transfer Funds
After obtaining the "approval letter" from the Investment Commission, you can go to the Bank of Taiwan to open a preparatory account (temporary account) and remit the capital amount from abroad. This step is the key procedure to verify the capital of the company before incorporation. In addition to the personal seal of the person in charge of the company, the following documents are also required to open a preparatory account:
- Pre-approval of company name
- Investment Permit Approved by the Investment Commission
- Uniform Basic Identity Card Number (UBCN) form for all relevant persons (available from the Immigration Department or Household Registration Offices)
Note that the amount of remittance must be the same as the original investment amount applied for, the name of the remitter should be exactly the same as the identity of the investor; and the remittance must be in a foreign currency equivalent to the amount of the investment.
Step 5: Funding Approval and Investment Licence Issuance
After the funds are credited to the bank, please keep the foreign exchange tax bill, bank remittance advice, bank exchange bill (or remittance bill), and remittance instruction letter to carry out the remittance settlement action. Upon completion of the remittance settlement procedures, these documents will be used as the basis for subsequent "capital verification" and will be submitted to the Investment Commission for confirmation of funds availability.
Upon completion of the audit, the Board will issue a "Foreign Investment Permit Letter", which will serve as the basis for the formal registration of the establishment.
Step 6: Get an accountant to verify the capital and issue a report.
The company's capital must be verified and certified by a Taiwan accountant, who will issue a formal capital verification report. This report is one of the mandatory documents for the establishment and registration of the company and should be submitted before or within 30 days after the establishment.
Step 7: Company Establishment Registration and Uniform Numbering (Commercial Division, Ministry of Economic Affairs)
Upon completion of the capital verification by the Investment Commission, it is necessary to provide the company's establishment address for company registration. Generally speaking, if you do not yet have a specific business address, shop or office, you may first choose the office space provided by the Business Centre for registration.
The registration of companies is divided into units according to the amount of paid-in capital:
If the paid-in capital reaches NT$500 million or more, it will be processed by the Department of Commerce, Ministry of Economic Affairs;
If the amount is less than $500 million, it will be sent to the local authorities (e.g., Taipei City Government, New Taipei City Government, Kaohsiung City Government, etc.) according to the location.
Upon approval of the registration of establishment, the company will be issued with a "uniform number" and formally acquire the status of a company.
Step 8: Tax Registration and Business Establishment (IRS)
After obtaining the standardised number, they should bring along the relevant documents for company registration andNational Tax Application FormApply for tax registration at the National Tax Bureau under your jurisdiction to complete the establishment of your business. The application must be accompanied by the articles of association, proof of identity of the person in charge, and proof of the company's address.
Notes and Frequently Asked Questions about Setting up a Company in Taiwan
How much capital do I need to set up a company in Taiwan?
According to Taiwan's currentCompanies ActThe minimum capital requirement for the establishment of limited companies has been formally abolished since 1998 (2009). In other words, theoretically, as long as the amount of capital contribution is reasonable, a company can be established.
However, according to Longfellow's extensive experienceFor practical purposes, it is still recommended to have a capital of at least NT$500,000 or more., reasons include:
Requirements for vetting by the Investment Commission: Hong Kong and Macau residents are foreign investors and are subject to the scrutiny of the Investment Commission (IC) when applying for company establishment. If the capital is too low, it may not be regarded as having reasonable operating capacity, thus increasing the risk of not passing the vetting process.
Immigration and Work Permit Application Requirements: If you are planning to apply for a business start-up or a work permit, a low capitalisation will not be conducive to making a subsequent application, and you will not be able to prove that your company has a stable business foundation.
Actual Operating Cost Considerations: In the initial stage of establishment, we still need to cover basic expenses such as office space rental, utilities, equipment purchase, staff salaries, capital verification and tax.
Foreign Can a person set up a one-person company in Taiwan?
You can.
Under the provisions of the Companies ActTaiwan allows foreigners (including Hong Kong and Macau residents) to set up one-person limited companies.In other words, a company with only one shareholder. The company still has the status of a legal person and can operate its business, employ staff, apply for work permits and file tax returns in accordance with the law, and the procedures are exactly the same as those for ordinary multi-shareholder companies.
Can I apply for Taiwan Business Migration if I have a company in Taiwan?
You can.
Hong Kong and Macao residents who set up a company in Taiwan and meet the specific requirements will have the opportunity to apply for residency or even settlement in Taiwan through the "Investment Immigrant" or "Entrepreneur Visa".
Investment Immigration for Hong Kong and Macau Residents
Hong Kong and Macao residents shall be subject to the Regulations on Permission for Hong Kong and Macao Residents to Enter, Reside and Settle in Taiwan.Lower threshold compared to expatriates. Applications can be submitted as long as the company is established and actually operates in Taiwan and meets the following criteria:
Proposed capitalisation of up to NT$1,000,000 Over $6 million
Continuous operation for more than 3 years
Practically responsible for the management of the company
Accumulated residence in Taiwan for a specified number of days (e.g. 183 days per year)
Those who fulfil the conditions can apply for "residence" and after accumulating years of experience, they can change to "settlement".
Entrepreneur Visa
The Entrepreneur Visa is a programme designed by the Taiwan government to attract outstanding foreign entrepreneurial talent to Taiwan. It is available to residents of Hong Kong, Macau and other foreigners, is valid for two years, is renewable, and can be used as one of the means of applying for residency and long-term settlement.
Compared with the higher threshold of traditional investment immigration (e.g. capitalisation of NT$6 million or more), the Entrepreneur Visa offers a wide range of flexible eligibility criteria.Entrepreneur Visa Eligibility RequirementsAn application can be made for either one of the following.
What is the approximate time from preparation to start-up?
Generally speaking, ifAll documents are prepared in advanceThe overall time required for Hong Kong and Macao residents to set up a company in Taiwan is about 2 months, but the actual time required may still be extended due to incomplete documents or the need for replacement documents, delayed examination period, etc. The time required for Hong Kong and Macao residents to set up a company in Taiwan is about 2 months.
Do I need an accountant to open a company in Taiwan? Can I get an accountant to do it for me?
When setting up a company in Taiwan, especially when investing as an "Overseas Chinese" from Hong Kong or Macau, the process of capital verification, visa, tax registration and tax filing requires the assistance of a professional accountant and can be quite cumbersome, so many Hong Kong and Macau investors choose to co-operate with a professional agency to assist in the process.
Recommended Company in Taiwan: Langfeng Business
For Hong Kong and Macao people who are setting up a business or company in Taiwan for the first time, cumbersome regulations, cross-border documents and language differences are often the biggest obstacles to setting up a company. Choosing a professional agency that is familiar with the needs of Hong Kong and Macao people and has many years of practical experience is the key to improving efficiency and success.
LFB specialises in assisting Hong Kong, Macao and foreign investors to set up business in Taiwan by providing one-stop agency services, includingRegistration of Company EstablishmentIn addition, the Committee will be asked to consider the application of the Government of the Hong Kong Special Administrative Region (HKSAR) to the Investment Commission,Accounting、Tax ConsultancyLafont Business Solutions is a leading provider of customised solutions to support the entire process of setting up a limited company or setting up a subsidiary company. Whether you are setting up a limited company, setting up a subsidiary, or planning for future immigration and residence, LFB can provide customised solutions based on your individual needs.