{"id":5409,"date":"2025-06-02T15:08:51","date_gmt":"2025-06-02T07:08:51","guid":{"rendered":"https:\/\/setuphk.com\/?p=5409"},"modified":"2025-12-02T06:39:58","modified_gmt":"2025-12-02T06:39:58","slug":"start-up-business-in-taiwan","status":"publish","type":"post","link":"https:\/\/setuphk.com\/en\/start-up-business-in-taiwan\/","title":{"rendered":"A guide for Hong Kong people to setting up a company in Taiwan: application process, points to note and costs (for both entrepreneurs and those emigrating to Taiwan)"},"content":{"rendered":"
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Hong Kong and Macao residents who open a company in Taiwan must be approved by the Investment Commission as overseas Chinese and foreign investors. We suggest registered capital of at least NT$500,000 and a company type such as a limited company. The whole process takes about 2 months, and a professional agent can simplify the application.<\/p>\n<\/blockquote>\n\n\n\n

What Hong Kong and Macao residents need to know about opening a company in Taiwan<\/h2>\n\n\n\n

Hong Kong and Macao residents count as overseas Chinese and foreign investors<\/h3>\n\n\n\n

When Hong Kong and Macao residents open a company in Taiwan, under the current Statute for Investment by Foreign Nationals<\/a>, their status is classified as ' overseas Chinese and foreign investor'. They must use the foreign investment channel and submit the ' Application for initial investment by overseas Chinese and foreign nationals<\/a>', and can proceed to the next step of the incorporation process only after the Investment Commission approves.<\/p>\n\n\n\n

Hong Kong and Macao residents need to go through the Department of Investment Review, Ministry of Economic Affairs (Investment Commission)<\/h3>\n\n\n\n

Before registering a company, all Hong Kong and Macao residents must first obtain approval from the Department of Investment Review, Ministry of Economic Affairs (formerly the Investment Commission, MOEA, or 'Investment Commission' for short, which has since been renamed). The application covers the investor's details, the source of funds and the business items. Only after approval can the later capital verification and incorporation steps proceed.<\/p>\n\n\n\n

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In addition, even after the company has been set up and started trading, any addition or removal of business items, or increase or reduction of capital, must be reviewed and approved by the Investment Commission before it can proceed.<\/p>\n<\/blockquote>\n\n\n\n

How much capital do Hong Kong and Macao residents need to set up a company?<\/h3>\n\n\n\n

This is the biggest difference from a Hong Kong company, because setting up a company in Taiwan requires share capital. Although there is no stated minimum capital for a limited company in Taiwan, in practice we recommend preparing at least NT$500,000 or more<\/strong>, so that the Investment Commission accepts that the business is reasonably viable, and to make later immigration and work visa applications easier.<\/p>\n\n\n\n

How much capital is needed to apply for immigration to Taiwan?<\/h3>\n\n\n\n

If you want to apply through starting a business for investment immigration<\/a>, you must meet the investment amount requirement. Under the standards of the Investment Commission of the Executive Yuan, the capital must reach NT$6 million or more<\/strong> (about HK$1.5 million) and the company must have operated for 3 years to qualify for an investment immigration application. If you want to apply for entrepreneur immigration<\/a>, we recommend capital of NT$2 million, and the company must have operated for 3 years before you can apply.<\/p>\n\n\n\n

What company types can Hong Kong and Macao residents choose from?<\/h2>\n\n\n\n
\"What<\/figure>\n\n\n\n

Opening a company in Taiwan broadly falls into two types: coming to Taiwan with parent company funds, and coming to Taiwan to start a business.<\/p>\n\n\n\n

Company types for Hong Kong and Macao residents in Taiwan: starting a business in Taiwan<\/h3>\n\n\n\n

Limited company<\/h4>\n\n\n\n

A limited company is one of the most common choices for Hong Kong and Macao residents setting up a company in Taiwan. It needs only one or more shareholders. The company has separate legal personality, and shareholders are liable for the company's debts only up to their capital contribution, which effectively reduces personal financial risk.<\/p>\n\n\n\n

This type has a moderate entry threshold and high operating flexibility, and suits both small-scale start-ups and gradual business expansion. The set-up process is also clear, and it can serve as the base company structure for applying for a manager's work permit and for Taiwan investment immigration.<\/p>\n\n\n\n

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Whether your purpose is to start a business or to immigrate to Taiwan, choosing a limited company is a moderately difficult option with a relatively high success rate.<\/p>\n<\/blockquote>\n\n\n\n

Company limited by shares<\/h4>\n\n\n\n

A company limited by shares is set up by two or more shareholders, or by a government agency or legal entity as sole owner, with all its capital divided into shares. Each shareholder is liable to the company only for the shares they have subscribed, with a clear contribution liability and ownership proportion.<\/p>\n\n\n\n

This type suits businesses with larger capital and long-term operating or listing plans. Although the set-up procedure is slightly more involved than for a limited company, it is still an ideal structure for building a professional corporate brand, attracting investment or listing in future.<\/p>\n\n\n\n

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The two types above are the more common company types and are not too difficult to apply for. We recommend consulting professionals first to understand the rules and process clearly before you prepare, which can raise the chance of success.<\/p>\n<\/blockquote>\n\n\n\n

Limited partnership company<\/h4>\n\n\n\n

A limited partnership company is set up by at least one unlimited-liability shareholder and one limited-liability shareholder. The unlimited-liability shareholder bears full joint liability for the company's debts, while the limited-liability shareholder is liable only up to their capital contribution.<\/p>\n\n\n\n

Although this is possible under the system, the division of liability is complicated and it is rarely used in practice, so Hong Kong and Macao residents almost never use this type when setting up a company.<\/p>\n\n\n\n

Business firm (sole proprietorship)<\/h4>\n\n\n\n

A business firm (trade name) is the simplest form of business. Set-up procedures are simple and costs are low, and it is common among local small shops and stall holders. However, because it is run by an individual, its name cannot be duplicated within the same county or city, it has no separate legal personality, and the person in charge bears unlimited liability for all business activities.<\/p>\n\n\n\n

If a business firm is poorly run and runs into debt problems, the person in charge must repay from personal assets, so the risk is relatively high.<\/p>\n\n\n\n

This type is less suitable for Hong Kong and Macao investors who want to expand or apply for an immigration visa. In general, the success rate of business firm applications by Hong Kong and Macao residents or foreign nationals is also low.<\/p>\n\n\n\n

Unlimited company<\/h4>\n\n\n\n

An unlimited company is a partnership form. It must be set up by two or more people, and all shareholders (partners) bear unlimited joint liability for the company's debts. If the company makes losses or becomes involved in debt disputes, the partners must repay from their personal assets, so the risk is relatively high.<\/p>\n\n\n\n

This company type is rarely seen among Hong Kong and Macao residents starting a business in Taiwan, because the legal liability is too heavy and there is no separate legal personality.<\/p>\n\n\n\n

By comparison, most Hong Kong and Macao investors prefer a 'limited company' or a 'company limited by shares', setting up a formal business as a sole owner or with limited liability to reduce legal and financial risk.<\/p>\n\n\n\n

Company types for Hong Kong and Macao residents in Taiwan: coming to Taiwan with parent company funds<\/h3>\n\n\n\n

Subsidiary<\/h4>\n\n\n\n

A subsidiary is a legal entity set up with funds from a parent company, independently established and legally registered in Taiwan. Its operations are separate from the parent company, it is responsible for its own management and accounts, and it has its own legal status. If a Hong Kong or Macao company chooses to operate in Taiwan by setting up a subsidiary, the subsidiary can also be listed on the Taiwan Stock Exchange in future if the business grows.<\/p>\n\n\n\n

Branch<\/h4>\n\n\n\n

A branch is set up in Taiwan with funds from the parent company. Although it can carry out business activities in Taiwan, such as trading, filing tax and issuing invoices, it has no separate legal personality and is an extension of the parent company. Setting up a branch does not require a capital review by the Investment Commission, and the application is handled by the Department of Commerce, Ministry of Economic Affairs.<\/p>\n\n\n\n

Because a branch is subordinate to its parent company, the parent company bears joint liability if debts arise during its operation in Taiwan. In addition, the branch's name must show its affiliation and place of establishment.<\/p>\n\n\n\n

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A branch cannot be listed in Taiwan. If you have capital market plans in future, we suggest setting up a 'subsidiary' instead, which is more suitable.<\/p>\n<\/blockquote>\n\n\n\n

Representative office<\/h4>\n\n\n\n

A representative office has no legal personality and no right to trade. Its main function is to act as the parent company's administrative contact point in Taiwan, helping to handle various non-profit-making matters.<\/p>\n\n\n\n

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A representative office cannot sell, issue invoices or collect payments, and is suitable only as a base for early market observation or technical support.<\/p>\n<\/blockquote>\n\n\n\n

When setting up a representative office, the name must show its place of affiliation and the parent company. For example, a Hong Kong company's representative office should be called 'Taiwan Office of Hong Kong XX (Shares) Limited'.<\/p>\n\n\n\n

What are the requirements for the person in charge of a Taiwan company?<\/h2>\n\n\n\n

A company must have one person in charge, who can be a Hong Kong or Macao resident or someone with resident status in Taiwan. If the person in charge is a foreign national, they may need to apply for a work permit or residence in Taiwan.<\/p>\n\n\n\n

What are the requirements for choosing a company name in Taiwan?<\/h2>\n\n\n\n

When setting up a company in Taiwan, a company name has legal exclusivity<\/strong>. If a name is already in use or is too similar, it will affect the set-up process and the application may even be rejected. We therefore recommend thinking of a few alternative names and searching for them in advance, before setting up the company.<\/p>\n\n\n\n

We suggest first going to the ' Ministry of Economic Affairs Company Name and Business Items Pre-check Assisted Search System<\/a>', entering 1 to 5 candidate names to search, and ranking them by preference. After confirming that no one is using them, go to the 'One-Stop Online Application System for Companies, Businesses and Limited Partnerships' to submit the formal pre-check application.<\/p>\n\n\n\n

Are there restrictions on business items for a company in Taiwan?<\/h2>\n\n\n\n

A Taiwan company must fill in its business items when it is set up. Most industries can be registered freely, and only some items are prohibited for overseas Chinese and foreign investors<\/a>. In addition, we can also look at the digits of the business item code. A code ending in '1' indicates a specially licensed business, which must be reviewed and approved by certain departments or agencies before an application can be made.<\/p>\n\n\n\n

We suggest registering about 10 to 20 items, covering the main business and the business you expect to expand into.<\/p>\n\n\n\n

In practice, some people who are not familiar with the company application process for Hong Kong and Macao residents may suggest adding the code ' ZZ99999<\/em> Any business that is not prohibited or restricted by law, other than businesses requiring a permit', which keeps operating flexibility and avoids later amendment procedures. However, because the Investment Commission has recently been strict in reviewing the business scope of Hong Kong and Macao applicants, adding this business item may increase the approval time or difficulty. We suggest consulting a professional firm that handles the set-up of Taiwan companies for Hong Kong and Macao residents.<\/p>\n\n\n\n

In addition, the first five business items affect the tax classification, so it is advisable to put items with lower tax rates or lower audit risk first<\/strong>, which helps reduce tax risk.<\/p>\n\n\n\n

Application process for setting up a company in Taiwan<\/h2>\n\n\n\n

If Hong Kong and Macao residents plan to set up a limited company in Taiwan, it is generally handled through a local accounting firm, bookkeeping agent firm or a professional agency in Hong Kong. We suggest first confirming that the company's registered address, person in charge, capital and all related documents are ready before applying, and then completing the set-up step by step through the following process:<\/p>\n\n\n\n

\"Application<\/figure>\n\n\n\n

Step 1: Company name pre-check (Ministry of Economic Affairs)<\/h3>\n\n\n\n

The company name must be registered in Chinese and show the industry category and location, for example 'Taiwan XX Information Co., Ltd.' (in Chinese). The applicant must carry out the 'company name and business item pre-check' through the website of the Department of Commerce, Ministry of Economic Affairs, to make sure the name is not a duplicate and complies with the naming rules. Once it passes review, the name can be reserved for later registration.<\/p>\n\n\n\n

Step 2: Arrange the power of attorney and notarisation of documents (if needed)<\/h3>\n\n\n\n

If an agent is acting, or the Hong Kong or Macao investor is not in Taiwan, the power of attorney, passport copy and other supporting documents must be notarised. Hong Kong and Macao can use China-appointed attesting officers, and the documents can be used once authenticated by the Straits Exchange Foundation.<\/p>\n\n\n\n

Step 3: Submit the foreign investment application (Investment Commission)<\/h3>\n\n\n\n

Hong Kong and Macao residents are 'overseas Chinese and foreign investors' and, before the company is formally set up, must pass review by the Department of Investment Review, Ministry of Economic Affairs (Investment Commission)<\/a> before they can register. You must complete the investment application form and submit the following documents to attach to the investment application<\/a>:<\/p>\n\n\n\n