Source-cited draft: company formation & entity choice for Taiwan (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
Written by the OpenAccountants team. Written by the OpenAccountants team from the official sources it cites.
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Common entity types overview
Foreign and local investors most commonly use a company limited by shares or a limited company under the Company Act; foreign companies may also operate via a branch or representative office. Foreign-owned entities must clear the Investment Commission (MOEA).
Company limited by shares (股份有限公司)
Most common vehicle for larger/foreign-invested businesses; shareholders' liability limited to share capital; requires at least one shareholder (corporate) or two natural-person shareholders and directors ((approx — confirm director/shareholder minimums))Company Act — https://taiwan.acclime.com/guides/how-to-register-company/
Limited company (有限公司)
Simpler form for SMEs; one or more members with liability limited to capital contributions; at least one directorCompany Act — https://taiwan.acclime.com/guides/how-to-register-company/
Branch of a foreign company
An extension of the foreign parent (not a separate legal entity); branch profits are not subject to the undistributed-earnings surtaxCompany Act — https://taiwan.acclime.com/guides/how-to-register-company/
Capital, process and timeline overview
There is no statutory minimum capital for most domestic businesses, but foreign-investment cases and work-permit-sponsoring entities face practical capital expectations, and paid-in capital must be CPA-verified.
Minimum share capital
No statutory minimum for most companies; capital must be sufficient for operations and is CPA-verified. Foreign-investment / work-permit cases often expect capital around NT$500,000 or more in practice TWD ((approx — confirm work-permit capital expectation))Company Act — https://taiwan.acclime.com/guides/how-to-register-company/
Foreign investment approval
Foreign investors must obtain Foreign Investment Approval from the Investment Commission (Department of Investment Review), MOEA, before incorporationStatute for Investment by Foreign Nationals — https://taiwan.acclime.com/guides/how-to-register-company/
Core incorporation steps
1) reserve company name & business scope; 2) FIA approval (foreign investors); 3) open preparatory bank account & inject capital; 4) CPA capital verification; 5) company registration with MOEA; 6) tax & employer (labor/health insurance) registrationCompany Act — https://taiwan.acclime.com/guides/how-to-register-company/
Typical incorporation timeline
Approximately 4–8 weeks for a foreign-invested entity, depending on investment approval and capital verification ((approx — confirm))Company Act — https://taiwan.acclime.com/guides/how-to-register-company/
Indicative professional/setup cost
Government fees are modest; professional fees for a foreign-invested company commonly range from roughly NT$60,000 to NT$150,000+ TWD ((approx — confirm; varies by provider))Company Act — https://taiwan.acclime.com/guides/how-to-register-company/
Core annual compliance overview
Incorporated entities must keep statutory books, file annual tax returns and maintain their MOEA registration.
Annual corporate income tax return
File the profit-seeking enterprise income tax return by 31 May following the fiscal year-endIncome Tax Act — https://taxsummaries.pwc.com/taiwan/corporate/tax-administration
Bimonthly VAT returns
File business (VAT) returns every two months by the 15th of the following monthValue-added and Non-value-added Business Tax Act — https://www.etax.nat.gov.tw/etwmain/en/cbec-tax-area/business-tax
Company registration upkeep
Changes to directors, capital, address or business scope must be filed with the MOEA; companies must maintain a Taiwan-resident responsible person/representativeCompany Act — https://taiwan.acclime.com/guides/how-to-register-company/
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