Whether you’re planning to set up a small business or a multinational corporation in Taiwan, understanding the costs involved is crucial for the success of your business.
Taiwan is a vibrant hub of business and commerce in Asia, attracting entrepreneurs and investors from around the world.
However, starting a business in Taiwan requires careful planning and preparation, particularly when it comes to registering your company with the government.
One of the prominent factors in establishing a company in Taiwan is understanding the costs involved in it. By understanding the costs involved in registering a company in Taiwan, you’ll be better prepared to make informed decisions about your business expansion.
In this article, we’ll explore the cost to register a company in Taiwan, from the initial business license application to ongoing tax and insurance expenses.
Cost To Register Company In Taiwan
The cost to register a company in Taiwan involves several fees and expenses and can vary depending on the type of company, the services required, and the complexity of the registration process.
The first step is to obtain a business license, which requires an application fee of approximately NT$3,000. Generally, the cost of registering a company in Taiwan can range from around NT$10,000 to NT$30,000 (approximately USD $350 to $1,050).
In addition to these fees, there is also a capital verification fee, which is based on the authorized capital of the company. This fee ranges from NT$500 to NT$50,000. Companies are also required to pay an annual business registration fee, which is approximately NT$2,000.
However, in Taiwan, all registered companies are required to have a company seal or chop. This is an official stamp that represents the company and is used for important documents, such as contracts and legal papers. The cost of a company seal could differ as per the design and quality of the seal.
Depending on your business needs, you may require additional services, such as tax registration, opening a bank account, or obtaining a business license. These services will also add to the overall cost of registering a company in Taiwan.
The Expense to Start a Business in Taiwan as a Sole Proprietor
The cost to start a business in Taiwan as a sole proprietor could differ as per the nature of your business and the assistance you require.
Here’s a breakdown of the typical costs involved:
To operate a business in Taiwan, you should obtain a business license. The cost of the license differs depending on your business activities. The government fee for a basic business license for a sole proprietorship is around NT$1,000 (approximately USD $35).
If you plan to register your business with the Taiwan government, there will be a registration fee to pay. The government registration fee for a sole proprietorship is around NT$1,000 (approximately USD $35).
Business Name Registration
If you plan to use a company name that is distinct from your private name, you will need to register the name with the government. The fee for enlisting a company name is around NT$500 (approximately USD $17).
All registration documents in Taiwan must be submitted in Chinese. If you don’t speak the language, you may need to recruit a translator to guide you through the process. The fee for translation services could differ as per the number of documents that need to be translated.
As a business owner, you have to enlist your company for taxes. This procedure is typically free, but you might be required to employ an accountant to assist you with the procedure, which could be an additional cost.
In Taiwan, business owners are needed to possess a specific kind of insurance, like liability insurance. The cost of business insurance varies based on the kind and level of coverage you require.
Cost to Register a Company in Taiwan as per Legal Entity
Here’s a more detailed breakdown of the cost to register a company in Taiwan based on the legal entity:
The cost to register a partnership in Taiwan is higher than that of a sole proprietorship. The government registration fee for a partnership is around NT$5,000 (approximately USD $175), and you may also need to pay for translation services and legal fees.
Limited Liability Company (LLC)
The most common lawful entity for businesses in Taiwan is LLC. The government registration fee for an LLC is around NT$6,000 (approximately USD $210). You will be expected to pay for translation services and legal fees, which can vary relying on the complexity of the enrollment procedure.
To register a corporation in Taiwan, you must first establish a branch office in the country. The government registration fee for a corporation branch office is around NT$20,000 (approximately USD $700).
A representative office is a non-yield commodity that cannot engage in profit-making activities. The government registration fee for a representative office is around NT$5,000 (approximately USD $175).
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Ultimately, registering a company in Taiwan can be a highly rewarding experience for foreign investors and entrepreneurs. With its suitable business location to a highly skilled workforce, Taiwan is an attractive destination for those looking to expand their business operations in Asia. The cost to register a company in Taiwan can be a significant investment, and it can yield substantial rewards for foreign investors and entrepreneurs.
To get success, an aspiring business owner needs to develop a plan and obtain the correct advice from professionals, such as Odint Consultancy. With the help of our experts, you will be able to learn about the numerous cost to register a company in Taiwan.
The fees involved in registering a company in Taiwan include business license application fees, company registration fees, and capital verification fees.
Yes, ongoing expenses are associated with maintaining a registered company in Taiwan, such as annual business registration fees, taxes, and insurance premiums.
Yes, foreigners are allowed to register a company in Taiwan, but they must meet certain requirements, such as having a Taiwanese citizen as a director or establishing a branch office in Taiwan.
The registration process can range between a few weeks to a few months, relying upon the intricacy of the company and the completeness of the application.
Yes, there are numerous tax incentives obtainable for firms registered in Taiwan, like tax exemptions and fewer tax prices for particular enterprises.
Reshma Ali has great expertise in mergers & acquisitions, Financial planning, and international company formation and offers advice and knowledge to help businesses achieve their objectives.