Foreign Investment Comparison
View the decision guideCompare and analyze various investment options for overseas Chinese and foreign investors, including Mainland Chinese investors. Explore different choices for establishing a business entity in Taiwan, such as company incorporation and sole proprietorship, and gain insights into relevant regulations, capital requirements, and best practices. Contact Yiita Accounting & Bookkeeping Service to receive assistance
Start with the role you need in Taiwan
First decide whether you need a separate Taiwan entity or an extension of the foreign head office.
- Form a Taiwan company
Use the first comparison to choose between a limited company and a company limited by shares as a separate legal entity.
- Extend a foreign head office
A Taiwan branch may conduct business; a representative office does not have business qualification.
Eligibility, investment review, address, and tax requirements vary by case. Yiita will confirm the current path before filing.
Limited company and company limited by shares
On mobile, scroll sideways to compare every column.
| Comparison | Limited company | Company limited by shares |
|---|---|---|
| Eligible shareholders | Foreign legal entities or individuals | Foreign legal entities or individuals |
| May conduct business | ✓ | ✓ |
| May import and export | ✓ | ✓ |
| Separate legal entity | ✓ | ✓ |
| Number of shareholders | One or more individuals or legal entities | Two or more individuals, or one or more legal entities |
| Required roles | At least one director One investment registration agent | Directors and supervisor as required by law One investment registration agent |
| Registered address | Must satisfy applicable business-use rules | Must satisfy applicable business-use rules |
| Minimum capital | No general minimum; capital must be sufficient for formation costs | No general minimum; capital must be sufficient for formation costs |
| May publicly issue shares | No | Yes, subject to applicable requirements |
| May open a securities investment account | ✓ | ✓ |
| Foreign work permit applicants | Managers or technical personnel | Managers or technical personnel |
| Uniform invoices | ✓ | ✓ |
| Business tax rate | 5% | 5% |
| Profit-seeking enterprise income tax rate | 20% | 20% |
| Withholding on earnings distributed to non-residents staying under 183 days | 21% unless an applicable tax treaty provides otherwise | 21% unless an applicable tax treaty provides otherwise |
| Additional tax on undistributed earnings | 5% | 5% |
| Documents generally requiring authentication | 1. Parent company registration document 2. Power of attorney for the investment agent | 1. Parent company registration document 2. Power of attorney for the investment agent |
| Development and limitations | Cannot publicly issue shares without converting to a company limited by shares; may establish its own Taiwan branch | May publicly issue shares or seek a listing when applicable; may establish its own Taiwan branch |
General company application sequence:
Authenticate the parent-company registration document and power of attorney (5 days) ➡ company-name review (1 day) ➡ investment review (5 days) ➡ bank account opening in person (1 day) ➡ capital remittance (3 days) ➡ capital verification (5 days) ➡ address agreement (timing varies) ➡ company registration (4 days) ➡ tax registration (5 days) ➡ responsible person signs in person (1 day)
General estimate: approximately 30 business days
Taiwan branch and representative office
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| Comparison | Taiwan branch | Representative office |
|---|---|---|
| Parent organization | Foreign head office | Foreign head office |
| May conduct business | ✓ | No |
| May import and export | ✓ | No |
| Separate legal entity | No | No |
| Shareholders required | No | No |
| Required roles | One representative One manager | One representative |
| Registered address | Must satisfy applicable business-use rules | A general office address may be registered, subject to review |
| Minimum operating capital | No general minimum; foreign-currency investment must be remitted from abroad | None |
| May publicly issue shares | No | No |
| May open a securities investment account | No | No |
| Foreign work permit applicants | Managers or technical personnel | Representative |
| Uniform invoices | Required | Not applicable |
| Business tax rate | 5% | Not applicable |
| Profit-seeking enterprise income tax rate | 20% | Not applicable |
| Withholding when profits are remitted | No dividend withholding on remitted branch profits | Not applicable |
| Additional tax on undistributed earnings | Not applicable | Not applicable |
| Documents generally requiring authentication | 1. Head-office registration document 2. Head-office articles 3. Board minutes 4. Power of attorney for the branch representative 5. Power of attorney for the branch manager | 1. Head-office registration document 2. Power of attorney for the representative |
General Taiwan branch application sequence:
Authenticate head-office documents (5 days) ➡ company-name review (2 days) ➡ address agreement (timing varies) ➡ bank account opening in person (1 day) ➡ branch registration (4 days) ➡ operating-fund remittance (5 days) ➡ fund verification (5 days) ➡ tax registration (5 days) ➡ representative signs in person (1 day)
General estimate: approximately 28 business days
General representative-office application sequence:
Authenticate the head-office registration document and power of attorney (5 days) ➡ representative-office registration (5 days) ➡ tax registration (1 day)
General estimate: approximately 11 business days