Set Up Company In Taiwan

A foreign-funded company that wishes to invest or operate a business in Taiwan may do so by establishing a subsidiary, branch or a representative office. A subsidiary is a company set up in Taiwan with foreign capital. A subsidiary has the same function as a general company in Taiwan and has legal personality. A branch office which is a branch of the parent company in Taiwan and does not have legal personality, but can conduct business in Taiwan. A representative office not only has no legal personality in Taiwan, but also cannot operate, and its function is only communication with foreign companies.

Related Q & A for representative office
1. What is the biggest difference between a branch, a subsidiary and the representative office set up by a foreign company in Taiwan?
A: A subsidiary company has legal personality; a branch company does not have legal personality but has business qualification; a representative office doesn’t have legal personality and business qualification, only has the function of communication and assistance to foreign companies, and engages in business in Taiwan such as contract sign, quotation, bargaining, bidding, procurement, market research activities, etc.
2. What are the requirements for the name of the representative office?
A: When setting up the representative office, if the name of the foreign company is not in Chinese, the name must be translated into Chinese, and add the country where the company is located, for example, if the company is from the U.S., it should be called "U.S. ○○ Co., Ltd.
3. Does the representative office need a capital?
A: No, it does not. There is no capital requirement for a foreign company to set up an office in Taiwan.
4. Does the representative office need to be examined by the Investment Commission?
A: No, the competent authority for office establishment and examination is the Department of Commerce, Ministry of Economic Affairs.
5. Does the representative office in Taiwan need to be registered with business address?
A: Yes, the office must be registered with a business address that is in compliance with the regulations. You may choose “Taipei Entrepreneur Business Center”.
6. Can the representative office do business in Taiwan?
A: No, the office is not allowed to do business.
7. If the owner of the representative office is a foreigner, does the owner need to come to Taiwan in person?
A: No, the representative office and foreign companies or branches are different, and do not need to open an account at a bank or report to the Internal Revenue Service.
8. Can a foreign company set up the representative office in Taiwan, can it be entrusted to do so?
A: Yes, you can entrust "Taipei Entrepreneur Business Center" to handle the work for you.
9. How long does it take to complete all process for a foreign company to set up the representative office in Taiwan?
A: It takes about 15 working days.
10. What is the difference between the process of setting up the representative office for Chinese-based company and a foreign company in general?
A: The establishment and subsequent examination of the office of a land-based company is more stringent, requiring the provision of an annual work plan and budget to the competent authorities, while foreign companies do not have such requirements.