How Can a Foreign Company Set Up a Business in Taiwan?
A subsidiary is an independent company established under Taiwan law and has its own legal personality.
It is suitable for companies planning to operate in Taiwan on a long-term basis, enter into contracts, hire employees, and conduct business independently.
A branch office is an extension of the foreign parent company in Taiwan and does not have a separate legal personality. It is suitable for companies that wish to conduct business in Taiwan as part of their overseas corporate structure.
A representative office is generally suitable for foreign companies that do not yet intend to conduct business directly in Taiwan but need a local presence for market research, business communication, or other non-commercial activities. A representative office cannot conduct direct commercial activities.
After choosing the appropriate structure, the company should confirm whether its proposed business activities are permitted in Taiwan and whether any specific business requires additional approval or licensing.
Foreign investors establishing a new company in Taiwan generally need to apply for investment approval in accordance with Taiwan's foreign investment regulations.
For a subsidiary, the company will generally need to apply to the Ministry of Economic Affairs for a preliminary review of the proposed company name and business activities to ensure they comply with applicable requirements.
After completing the preliminary name and business activity review, the foreign investor submits an investment application in accordance with the applicable requirements.
The application generally includes the investment application, preliminary review documents, proof of the investor's identity or corporate status, and relevant authorization documents.
Once the investment application is approved, the investor can proceed with the subsequent capital remittance and company establishment procedures.
After investment approval is obtained, the investor remits the approved investment capital to the designated preparatory account in Taiwan.
Once the funds have been remitted, the investor must complete the required capital verification process before proceeding with company registration.
For a subsidiary, the company can proceed with company registration after completing the required investment procedures.
For a branch office, the foreign company must complete the required recognition and branch registration procedures in accordance with Taiwan's regulations governing foreign companies. It must also complete subsequent tax registration and other applicable procedures.
After the company or branch has been established, additional arrangements may include opening a corporate bank account, completing tax registration, hiring employees, securing an office address, and handling other administrative requirements.
If a full-scale office is not necessary at the initial stage, a business center can provide a more flexible way to establish a Taiwan presence through business registration addresses, private offices, meeting rooms, and administrative support services.
Subsidiary, Branch Office, or Representative Office?
Business Structure | Suitable For | Can Conduct Business? | Legal Status |
Subsidiary | Companies planning long-term operations in Taiwan | Yes | Independent legal entity in Taiwan |
Branch Office | Companies operating in Taiwan under their overseas parent company structure | Yes | Not a separate legal entity |
Representative Office | Market research, communication, and non-commercial activities | No direct commercial activities | Not a separate legal entity |