Investment Structure


※ While investing in Taiwan, you have several choices at your discretion. The characteristics and difference are analyzed below to facilitate the most suitable selection:

   

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Company limited by shares Limited company Branch company Rep-Office Store

Capital structure

Shareholders are foreign juridical (corporate) persons or natural persons

Shareholders are foreign juridical (corporate) persons or natural individuals

Head office is a foreign corporation

Head office is a foreign corporation

Capital comes from foreign individuals

Permission to conduct business Yes Yes Yes No Yes
Permission to import and export Yes Yes Yes No Yes
Status as a juridical (corporate) person Yes Yes No No No

Minimum number of shareholders

2 natural persons (individuals) or 1 juridical (corporate) person

1 natural person (individual) or 1 juridical (corporate) person

NA

NA

1 natural person

Minimum number of key personnel

1 director and
1 supervisor

1 director

1 responsible person and
1 manager

1 representative

1 investor

Address for company registration

Any legal premises

Any legal premises

Any legal premises

Any legal premises

Any legal premises

Minimum capital required

NT$50,000 (must be remitted into Taiwan from foreign territory)

NT$50,000 (must be remitted into Taiwan from foreign territory)

NT$50,000 (must be remitted into Taiwan from foreign territory)

Nil

NT$50,000 (must be remitted into Taiwan from foreign territory)

Permitted to issue shares to public

Yes

No

No

No

No

Permitted to take out labor insurance/national health insurance for employees Yes Yes Yes Yes Yes
Permitted to open a bank account Yes Yes Yes Yes Yes
Permitted to open a securities account Yes Yes Yes No No
People who can apply a foreign worker permit Managers, technicians Managers, technicians Managers, technicians Representative No
Uniform invoice required? Yes Yes Yes No Yes
Tax Filling Yes Yes Yes No Yes
Business tax (VAT) rate 5% 5% 5% Nil 5%
Income tax rate 20% 20% 20% Nil 20%
Number of years a loss can be carried forward 10 Years 10 Years 10 Years Nil Nil
Percentage of distributed profits to be withheld (where the shareholder is a Non-tax resident Taiwan) 21% 21% No withholding Nil 21%
Extra tax rate on profits not distributed 5% 5% Nil Nil 5%

Suitable for which kind of applicants and what they can do

  • Enterprises with a separation of management power and ownership
  • Large- and medium-sized enterprises that aim to invest and make a profit in Taiwan or to become a global enterprise through public the issuance of stocks
  • Small- and medium-sized enterprises which can take taxation of up to 36.8%
  • People from abroad who plan to invest in Taiwan to gain residence through the employment route
  • Allowed to invest in Taiwan’s stock and real estate markets
  • Companies run jointly by shareholders of the same power
  • Small- and medium-sized enterprises which can take taxation of up to 36.8%
  • People from abroad who plan to invest in Taiwan to gain residence through the employment route
  • Allowed to invest in Taiwan’s stock and real estate markets
  • All types of enterprises that aim for high profits and high levels of tax mitigation
  • Small- and medium-sized enterprises which can accept taxation of up to 20%
  • Allowed to invest in Taiwan’s stock and real estate markets
  • Businesses not planning to sell products in Taiwan or service providers that do not need to issue receipts in Taiwan
  • Taiwanese employees of Taiwan investors assigned to mainland China but receive pay and have labor insurance/national health insurance in Taiwan
  • Businesses that engage in offshore trading or provide technological services offshore
  • Small businesses with low risks

Developmental potential and limitations

  • Possible to go public and getting listed in Taiwan
  • Possible to set up branches in Taiwan
  • Difficult to obtain loans
  • Not allowed to issue shares publicly until reorganized into a company limited by shares
  • May set up branches in Taiwan
  • Difficult to obtain loans
  • Allowed to have working capital in Taiwan; not allowed to have shares or issue shares to the public
  • The head office may set up multiple branches in Taiwan
  • Difficult to obtain loans and bid for government procurement contracts
  • Not allowed to do business
  • Allowed to have working capital in Taiwan; not allowed to have shares, issue shares to the public, or become listed in the Taiwan Stock Exchange Corporation (TSEC) or OTC
  • Cannot be changed into a company
  • Not allowed to hire foreign workers 
  • If the store/shop has multiple owners, it cannot be changed into sole ownership

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