Taiwan
Set up in Taiwan in 3–6 weeks — 20% flat CIT, no minimum capital. Access the semiconductor and AI supply chain.
Foreign Ownership Eligibility
Taiwan welcomes 100% foreign-owned companies
Fully remote formation — you never need to set foot in the country.
- 100% foreign ownership permitted in most sectors — no local partner requirement. The investment framework is 'open unless listed' on the MOEA Negative List.
- No minimum paid-in capital for a CLBS or Company Limited by Guarantee as of the 2023 Company Act amendment.
- Minimum 2 shareholders required for a CLBS (股份有限公司); minimum 1 shareholder for a Company Limited by Guarantee (有限公司).
- No local director required, but a local authorised representative is needed for certain MOEA filings and government correspondence.
- Pre-investment filing with the Investment Commission (IC) required for restricted sectors or above reporting thresholds — not required for most standard sectors.
- Foreign investors must report FDI to the Investment Commission (IC) under MOEA within the prescribed period after investment.
- Company seal (chop) is required — both a company seal and a representative's seal must be registered and are needed for most corporate filings and bank account opening.
Ownership
100% Foreign OK
Formation
100% Remote
Note
Physical presence is NOT required for company incorporation — the MOEA GCIS portal supports online registration. However, in-person attendance IS required to open a Taiwan corporate bank account. All major Taiwan banks require the company representative to appear in person with original documents and the company seal. Plan for an in-person visit or authorise a local representative with proper documentation.
Tax at a glance
Taiwan Tax Overview
20%
Corporate Income Tax (CIT) — standard
Flat rate on net profit; Income Tax Act, Article 5; calendar or approved fiscal year
0%
CIT on first TWD 120,000 of annual income
Exemption for enterprises whose taxable income does not exceed TWD 120,000 in a tax year
5%
Undistributed Retained Earnings Tax
Applied to earnings not distributed to shareholders within one year of fiscal year end; reduces incentive to retain profits
12%
Alternative Minimum Tax (AMT / IBT)
Applied to book income to ensure a minimum tax is paid; Income Basic Tax Act
21%
Withholding tax on dividends (non-residents)
On dividends paid to non-resident individuals and corporations; double taxation agreement reductions possible
15%–20%
Withholding tax on interest (non-residents)
15% for financial institutions; 20% for all other non-residents; DTT reductions possible
20%
Withholding tax on royalties (non-residents)
On royalties paid to non-resident recipients; double taxation agreement reductions possible
5%
Business Tax (VAT equivalent)
Standard B2B VAT rate; bi-monthly filing by the 15th of the following month
~35
Tax agreements / conventions
Covering double taxation avoidance with Singapore, UK, Netherlands, Sweden, Australia, Japan, France, and others
31 May
Corporate Income Tax return deadline
Annual return due May 31 for calendar-year companies; National Tax Administration (NTA)
Pros & cons
Advantages & Considerations
Key Advantages
Taiwan hosts the world's most concentrated semiconductor cluster — TSMC, MediaTek, UMC, ASE Group. A company registered in Taiwan has the most direct structural access to the global semiconductor and AI chip supply chain for procurement or participation.
20% flat corporate income tax rate with no progressive tiers and no mandatory minimum paid-in capital as of the 2023 Company Act amendment. A CLBS can be incorporated with any amount of capital that reflects the scale of operations.
R&D tax incentive: a 15% deduction of qualifying R&D expenditure against CIT liability, available to companies conducting research in Taiwan. Hsinchu Science Park and Nankang Software Park provide the physical infrastructure to support this.
Investment framework is 'open unless listed' — all sectors are accessible to foreign investors except those specifically named on MOEA's Negative List. Most standard commercial and technology sectors require only FDI reporting to the Investment Commission, not prior approval.
Four Free Trade Zones at Kaohsiung, Keelung, Taichung, and Taipei airports provide bonded warehousing, expedited customs clearance, and logistics processing.
Strong rule of law, independent judiciary, and WTO membership. Taiwan grants national treatment to foreign investors from WTO member countries under the Statute for Investment by Foreign Nationals.
High-quality STEM workforce with strong engineering talent concentrated in semiconductor, electronics, and ICT sectors. Engineering and technology graduate output supports high-tech operations.
~35 double taxation agreements/conventions covering major trading partners including Singapore, UK, Netherlands, Sweden, Australia, Japan, and France — reducing withholding tax on dividends, interest, and royalties.
Fully SWIFT-connected banking sector with USD/EUR/JPY/CNY transfer capability. After completing IC/CBC reporting and tax obligations, dividends and capital are freely remittable.
The government has committed NTD 50 billion to a startup fund, with accelerator infrastructure in Taipei and Hsinchu.
Considerations
Cross-Strait geopolitical risk is the defining risk factor for Taiwan investment. PRC claims sovereignty over Taiwan; businesses must assess potential supply chain disruption scenarios and review business continuity requirements before committing capital.
Undistributed earnings tax of 5% applies to corporate profits not distributed to shareholders within one year of the fiscal year end. This creates a structural cost for companies choosing to retain earnings for reinvestment rather than distributing dividends annually.
Taiwan's political status limits its formal DTT network to ~35 tax agreements versus the comprehensive networks of Singapore (90+) or the Netherlands (100+). Cross-border tax planning is more complex for investors from countries not covered.
Commercial real estate in Taipei is among the most expensive in Asia. Land acquisition for manufacturing or office space is challenging and costly, particularly in the Hsinchu and Taipei science park corridors.
Tight labour market in semiconductor and high-tech sectors. Competition for STEM talent is intense and salaries for experienced engineers are high relative to other Asian markets.
Mandarin Chinese is dominant in government documentation, legal filings, and regulatory correspondence. English is widely used in business, but translation and bilingual professional support add cost to compliance workflows.
Taiwan's nuclear phase-out policy created near-term power supply concerns. The ongoing renewable energy build-out is addressing this, but energy availability risk in high-consumption manufacturing contexts should be assessed.
Foreign SMEs may find fundraising and access to local capital more challenging compared to established Taiwan incumbents, particularly in capital-intensive hardware sectors.
Export control compliance complexity is increasing. US, Japan, and Netherlands restrictions on semiconductor equipment and advanced chip technology create layered compliance obligations for companies in or adjacent to the semiconductor supply chain.
Structural Comparison
Company Limited by Shares (CLBS / 股份有限公司)
Company Limited by Guarantee (有限公司)
Branch of a Foreign Company
Representative Office (代表人辦事處)
Incorporation Process
The process is strictly digital. Each stage builds on the previous one.
Free consultation with XBandGlobal specialists to confirm the right entity structure (CLBS or Ltd by Guarantee), determine whether Investment Commission review applies to your sector, and outline realistic costs and timelines.
Conduct a Negative List sector check to confirm your business activity is open to 100% foreign investment under MOEA's current Negative List for Investment by Overseas Chinese and Foreign Nationals.
Complete pre-investment filing with the Investment Commission (MOEA) if required for your sector or investment size — typically 5–15 business days. Most standard sectors are reporting-only, not approval-required.
Reserve your company name via the MOEA One-Stop Service (gcis.nat.gov.tw) online portal — confirmation is typically issued within 1–3 days.
Prepare Articles of Incorporation and supporting documents including shareholder and director identification. XBandGlobal's Taiwan partner coordinates with a qualified attorney or company secretary for document preparation.
What you'll pay
Cost Architecture
Government Fees
Annual Ongoing
Professional Services
Government registration fees in Taiwan are very low — total MOEA registration costs for a standard CLBS are under USD 100. The real costs are professional services: a Taiwan attorney or company secretary is effectively mandatory, bilingual document handling adds cost, and the annual audit plus tax compliance (CIT, AMT, undistributed earnings tax) can reach USD 10,000–20,000/year for a mid-sized foreign-owned entity. For investments requiring Investment Commission review, specialist legal support is essential, adding USD 3,000–8,000 to your setup budget.
Still unsure about costs?
These are estimates — your actual cost depends on your structure
Every Taiwan setup is different. A 15-minute call with one of our specialists will give you a personalised cost breakdown — completely free.
Fintech & Banking
Can non-residents open accounts without visiting? NO.
Banking options for non-resident founders in Taiwan. Remote account opening availability varies by institution.
| Institution | Type | Ease for Non-Residents | Notes |
|---|---|---|---|
| CTBC Bank | Local commercial bank | Low (Visit Required) | One of Taiwan's largest private banks. Active international corporate banking desk. Handles USD/EUR/JPY trade finance and cross-border remittances. In-person KYC required for new corporate accounts. |
| Taipei Fubon Bank (Fubon Financial) | Local commercial bank | Low (Visit Required) | Part of Fubon Financial Holdings — one of Taiwan's largest financial groups. Strong corporate banking and trade finance services. In-person attendance required. |
| E.Sun Bank | Local commercial bank | Low (Visit Required) | Consistently rated highly for customer service among Taiwanese private banks. Well-suited to SMEs and foreign-owned companies. Digital banking tools above average. In-person KYC required. |
| Cathay United Bank | Local commercial bank | Low (Visit Required) | Part of Cathay Financial Holdings. Broad corporate banking capability with international remittance handling. Active trade finance and treasury services. In-person visit required. |
| Standard Chartered Taiwan | International commercial bank | Low (Visit Required) | Familiar infrastructure for MNCs with existing Standard Chartered global banking relationships. Handles international trade, structured finance, and cross-border transactions. Thorough AML/KYC process; in-person visit required. |
| HSBC Taiwan | International commercial bank | Low (Visit Required) | Preferred by larger foreign corporates with existing HSBC global relationships. Strong cross-border remittance and treasury management. Expect comprehensive KYC review. In-person attendance required. |
| Citibank Taiwan | International commercial bank | Low (Visit Required) | Corporate and institutional banking focus. Best suited to large MNC subsidiaries with existing Citi global relationships. Limited SME services. In-person KYC required. |
Frequently Asked
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