Set Up a Limited Liability Company in Taiwan

Updated on Wednesday 21st July 2021

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As an investor in Taiwan you could set up a limited liability company which gives you the possibility to bear financial responsibility only for your part of investment. This Taiwan legal structure is similar to the limited liability legal forms available anywhere in the world, which allows foreign entrepreneurs to easily operate their businesses in Taiwan. One of our consultants in company formation in Taiwan can assist you with the registration of an enterprise in this jurisdiction by helping you comply with the provisions stated by the Company Law.
 

The first steps in opening a limited liability company in Taiwan

 
In order to determine whether a limited liability company is a suitable legal structure for your business profile and objectives, you could consult with one of our specialists in company formation in Taiwan. You should consider the initial investment capital as well as the number of partners with whom you intend to establish your company. According to the Company Act in Taiwan, an entrepreneur can also be the unique shareholder in a limited liability company

It is important to make some previous research before choosing a name for your company and starting the application for registration. For registration, you need to prepare the formation documents and address the Ministry of Economic Affairs. Our Taiwan company formation consultants can help you get informed on the restrictions and regulations contained in the Business Registration Act and help you prepare all the documents required for registration and submit them with the Ministry of Economic Affairs. 
 
If you want to open a limited liability company in Taiwan, you must be aware that you need to fulfill all the conditions in the list below, presented by our team of specialists in Taiwan company formation. For any of the steps mentioned below, our team can represent you in the relation with the local institutions: 
 
  • prepare the company’ statutory documents, which have to be notarized in front of a public notary in Taiwan;
  • then, you must find a suitable location where your company can have its official business address, where investors can meet with their partners and receive official business documents;
  • you must also decide on the business activities developed by the company and list them in the company’s statutory documents;
  • all companies in Taiwan must have a trading name and investors will have to search for one that is not already taken by another business;
  • companies must also have a company seal, which must contain the company’s name;
  • investors or our team of consultants in company registration in Taiwan have to address to a local commercial bank for opening a corporate bank account. 

 

Characteristics of limited liability companies, presented by our Taiwan company registration experts

 
The legal structure which allows several shareholders to invest in a business without being financially responsible for the entire amount of investment in the company is called a limited liability company. The particularities of this legal form are similar with those of limited companies from all over the world.

In order to register a limited liability company in Taiwan foreign investors need to obtain a work permit and be able to provide a minimum of NTD$500,000 (about USD 16,577) as initial investment. If there are multiple owners, each of them needs to provide at least one third of this amount.  
 

What is the management structure of a Taiwanese limited liability company?


The management of a limited liability company in Taiwan is formed of simpler structure compared to other company types, such as the public company. First, the investor is considered part of the management structure of the company and in order for the company to be incorporated, the limited liability company will need at least one investor, also referred to as a founder or a shareholder. 

Please mind that the local commercial legislation allows for a limited liability company to have a shareholder who can be a natural person, or a shareholder who is a corporate entity. There aren’t any residency requirements applicable in this case. Then, in order to open a company in Taiwan, the management structure must include the director. 

The director is the person in charge with making sure that all the executive structures of the company work in such a manner that the company’s objectives can be achieved. The director will directly report to the company’s founders. In a limited liability company, there is the need to have at least one director, who can only be a natural person. 

Although in other jurisdictions, the founders of a limited liability company may need to appoint a company secretary in a limited liability company, in the case of the Taiwanese limited liability company, investors do not need to appoint a secretary as a part of the managerial structure. 

The director of the company will always be elected by the company’s shareholders. In the case in which the investors decide to elect a new director, the procedure will be done through a shareholders’ meeting. You can request legal advice on other management obligations applicable to a limited liability company from our team
 
 

What are the elements of a registration application form in Taiwan?


Firstly, when applying to register a limited liability company, you will have to complete a set of documents. One of them is the Application for Establishment (Change) Registration of Limited Company. The form contains a set of details that the investors have to complete. 

Although the document contains numerous elements, for foreign investors there is the possibility of completing forms that contain an English translation of the Chinese elements. Although this can ease up the process, it can still feel unfamiliar to foreigners, and in this case, you can rely on the services of our team of consultants in company registration in Taiwan.  

The form will contain elements regarding the personal data of the applicant, of the company, such as the business name and the registered address, details on the articles of incorporation, the application for a Business Certificate Primary Card and others. 
 

Macroeconomic data on the Taiwanese economy 
 

Investors who want to open a company in Taiwan will definitely be interested in discovering as many details as possible regarding the local economy. Please feel free to verify all the documents provided by the National Statistics Office, which can offer a more comprehensive imagine on the following macroeconomic factors:
 
  • the economic growth rate estimated for 2021 is expected to be of 5,46% (on a year-to-year basis);
  • the unemployment rate registered in Taiwan in May 2021 stood at 4,11%;
  • the value of exports from Taiwan in May 2021 was of US$ 52,294 million;
  • the country's foreign exchange reserves accounted for US 543,28 billion in June 2021;
  • in May 2021, the country received 10,719 visitors. 


Feel free to contact one of our experts in setting up a company in Taiwan in order to help you with the papers and documentation so that you can start your business activity as soon as possible. We can also help you with the VAT registration procedure.