How to Set Up an Entity in Taiwan

Setting up an entity in Taiwan is appealing for international businesses seeking access to a stable, innovation-driven economy with strong manufacturing, technology, and semiconductor ecosystems. Taiwan combines a highly skilled workforce, modern infrastructure, and transparent commercial laws, making it an attractive base for companies expanding into East Asia or the broader Asia-Pacific region.

The incorporation process is relatively structured and predictable, but it can feel bureaucratic for foreign founders due to documentation, capital verification, and language requirements. Common challenges include coordinating registrations across multiple authorities, meeting tax and labor compliance obligations, and opening a local bank account. In return, businesses gain full operational autonomy, the ability to hire directly, and long-term control over revenues and intellectual property in Taiwan.

Disclaimer: This content is for informational purposes only and does not constitute legal, tax, or financial advice. Always consult official sources before acting.

What does “opening an entity” mean in Taiwan?

Opening an entity in Taiwan means registering a legal business presence with government authorities, obtaining tax and employer registrations, and meeting capital and compliance requirements so the company can operate independently. Foreign businesses typically choose between forming a local company (subsidiary) or registering a branch office, each with different tax and liability implications.

Entity overview in Taiwan

Here is a summary of the key features of company formation in Taiwan:

Step-by-step guide: How to open an entity in Taiwan

Step 1: Choose the right structure

Foreign companies typically choose a Limited Company or Company Limited by Shares, which offers limited liability and flexibility in ownership and profit distribution. Branch offices allow direct extension of a foreign parent but are taxed as permanent establishments and offer less operational independence.

Step 2: Verify business name availability

Business names must be checked and reserved through the Ministry of Economic Affairs’ Company Name Search system. Names must be unique and cannot mislead the public or infringe trademarks. A reservation is usually valid for six months.

Step 3: Prepare incorporation documents

Incorporation requires formally executed documents, many of which must be translated into Chinese.

• Articles of Incorporation (template available from the Ministry of Economic Affairs)
• Shareholder and director identification documents
• Capital verification report issued by a Taiwanese bank
• Lease agreement or proof of registered business address

Step 4: Register with the Ministry of Economic Affairs

Applications are filed electronically or in person with the Department of Commerce. Upon approval, the company receives its Certificate of Incorporation and a unified business number, which serves as its official registration ID.

Step 5: Register for tax and social security

Companies must register with the National Taxation Bureau for corporate income tax and VAT purposes, then enroll as an employer with the Bureau of Labor Insurance and the National Health Insurance Administration.

Step 6: Open a corporate bank account

A local corporate bank account is required to deposit capital and conduct operations. Banks apply strict KYC checks, typically requiring director presence, incorporation documents, and proof of business activity. Account opening can take one to three weeks.

Step 7: Set up payroll and employment compliance

Before hiring, employers must register for payroll reporting, enroll employees in labor insurance, health insurance, and pension schemes, and issue compliant employment contracts in line with Taiwan’s Labor Standards Act.

Discover how Elemental Enzymes accelerated regulatory approvals and market entry with Deel.

Post-registration obligations

After incorporation, companies in Taiwan must stay compliant with local governance, tax, and employment laws. Typical requirements include:

• Tax and financial reporting: File corporate income tax returns annually and VAT filings bi-monthly with the National Taxation Bureau under Taiwan GAAP or IFRS (where applicable)
• Corporate registers: Maintain up-to-date records of directors, shareholders, and beneficial owners and report changes to the Ministry of Economic Affairs within statutory deadlines
• Compliance tracking: Monitor all tax, licensing, and corporate filing deadlines through a compliance calendar or service provider to avoid penalties
• Licenses and renewals: Renew business licenses or sector-specific permits with the relevant ministry or municipality based on their renewal cycles
• Recordkeeping: Retain accounting, payroll, HR, and transaction records for at least five to ten years, depending on record type, under local law
• Employment law compliance: Adhere to labor, benefits, social security, and data-protection regulations, including timely payroll reporting and insurance contributions to the labor authorities

Taxes and financial considerations

Key obligations include:

• Corporate income tax: 20%, filed annually with advance provisional payments where applicable
• VAT/GST: 5%, with bi-monthly filings; mandatory registration once taxable sales occur
• Payroll/social contributions: Employer contributions apply to labor insurance, health insurance, and labor pension schemes, with shared employee contributions
• Accounting standards: Taiwan GAAP or IFRS for qualifying entities

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Expand internationally with Deel

Whether you’re hiring through an EOR or establishing your own local entity, Deel’s all-in-one platform gives you everything you need to expand into the United Kingdom—quickly, compliantly, and with confidence. From market entry to ongoing operations, Deel helps you hire, onboard, and manage teams seamlessly from day one.

With Deel, you can:

• Test new regions using Deel’s local entities through our Employer of Record service—hire employees compliantly, delegate payroll and taxes, and access localized employment contracts.
• Open entities with Deel Entity Setup, where our team manages everything—from incorporation and tax registration to coordination with local experts.
• Centralize your compliance and records with Deel Entity Management, including automated filings, calendar reminders, and visibility across all entities.
• Integrate with Deel Payroll and Deel HR for compliant payments, benefits, and workforce oversight—all in one platform.

For companies transitioning from the EOR model to owned entities, Deel ensures a smooth handover and consistent compliance every step of the way. Enter new markets, onboard talent, and manage your global workforce—all through one unified platform.

FAQs

How long does it take to open an entity in Taiwan?
Typically 4–6 weeks. Find out how long setup takes with our Entity Setup Calculator.

What is the minimum capital required?
There is no statutory minimum capital requirement, but capital must be adequate for the business scope.

Can foreign companies own 100% of an entity in Taiwan?
Yes, full foreign ownership is permitted in most industries, subject to Taiwan’s restricted sector rules.

Do I need a local director or representative?
A local director is not required. Directors and shareholders may be foreign nationals or entities.

How much does it cost to register an entity?
Average setup costs range from TWD 80,000 to 150,000 (≈ USD 2,500–4,700), including government fees and professional support. Find out the setup cost with our Entity Setup Calculator.

Can I hire employees before the entity is fully registered?
Typically, no. However, Deel’s Employer of Record (EOR) lets you hire and pay talent immediately while your entity setup is in progress.

Can Deel help me open an entity in Taiwan?
Yes. Deel Entity Setup manages the end-to-end process—from registration to payroll compliance—in over 100 countries. Deel’s local experts handle documentation, filings, and legal requirements on your behalf.

Does Deel offer ongoing compliance and payroll support?
Yes. Deel offers both managed services and self-service tools to help you stay compliant.

If you’re using Deel Entity Management, Maintenance, EOR, or Payroll, our team handles payroll, benefits, filings, and compliance obligations on your behalf.

For teams managing their own entities, Deel Compliance Hub makes staying compliant simple by providing real-time regulatory updates, risk alerts, and workforce insights across 150+ countries. Proactively manage compliance with our Compliance Monitor, Workforce Insights, and an AI-powered Worker Classifier, staying ahead of changing employment laws.

Can I switch from Deel EOR to my own entity later?
Yes. Deel supports seamless transitions when you’re ready.