How to register a company in Taiwan: A guide for employers

Scale in Taiwan: Asia’s compact powerhouse for tech innovation!

Taiwan, an advanced East Asian economy, offers immense business opportunities. With a highly skilled workforce and a robust digital infrastructure, Taiwan is an attractive destination for companies going global. The country is particularly well-known for its dominance in high-tech manufacturing, semiconductors, and innovation-driven industries.

However, registering a company in Taiwan involves understanding local regulations, business structures, and compliance requirements. The country has strict regulations and foreign investment restrictions. Besides, Mandarin is the primary language for contracts, government documents, and daily operations, which may hinder foreign entrepreneurs unfamiliar with the language and laws.

For businesses seeking a quick and simple market entry, an Employer of Record (EOR) can be ideal. It ensures compliance on your behalf and offers you local expertise to help you navigate the complex laws.

As a business, you have much to gain from expanding here, whether you establish a legal entity or hire talent via an EOR.

The business benefits of registering your company in Taiwan

Taiwan’s dynamic economy, investment-friendly policies, and access to international markets make it a top choice for global businesses.

Here are some of the key benefits of registering your company in Taiwan:

• Access to a highly skilled workforce: Taiwan has a well-educated workforce with proven expertise in sectors such as technology, manufacturing, and finance.
• Strong intellectual property protection: Taiwan’s robust legal system offers one of Asia’s most substantial IP protection environments, making it ideal for innovation-driven companies.
• Strategic location for regional expansion: Taiwan is a gateway to China, Japan, and Southeast Asia, making it an ideal location for companies looking to scale in Asia.
• Competitive business costs: While Taiwan offers a highly developed infrastructure, its business costs are lower than in other advanced economies such as Japan or South Korea.
• Advanced digital and logistics infrastructure: Taiwan has a world-class internet penetration rate, advanced transportation networks, and smart city initiatives, ensuring smooth business operations.
• Trade agreements and market access: Taiwan participates in several free trade agreements (FTAs), enabling businesses to trade efficiently with international markets.

While setting up a legal entity in Taiwan has benefits, recent foreign investment restrictions and geopolitical risks make some entrepreneurs cautious. Let’s explore a more flexible, low-risk alternative—using an Employer of Record (EOR) for your Taiwan expansion plans.

What is the difference between standard company registration and Employer of Record (EOR) in Taiwan?

If you’re expanding into Taiwan, it’s essential to understand your options. Depending on your business needs, you can register a legal entity or use an Employer of Record (EOR).

Here’s how they compare:

Aspect	Standard company registration	Employer of Record (EOR)
Purpose	Establish a legal entity in Taiwan.	Hire employees and operate without setting up a legal entity.
Control	Full control over operations, hiring, and business decisions.	EOR manages legal employment, while the company oversees work responsibilities.
Cost	Higher upfront costs (registration fees, legal setup, accounting, payroll, and taxes).	Lower costs—fixed monthly fee per employee covers compliance, payroll, and taxes.
Compliance	Must comply with Taiwanese tax laws, labor regulations, and corporate filings.	EOR handles all compliance, reducing administrative risks.
Setup time	2–4 weeks or more, depending on business structure and paperwork.	A few days—EOR enables immediate hiring and market entry.
Scalability	Requires entity registration for each location; exiting the market can be complex.	Flexible hiring, expansion, or exit without legal complications.

While standard registration is ideal for businesses planning a long-term presence and full operational control, an EOR is perfect for companies that want fast, cost-effective market entry.

How an EOR simplifies Taiwan company registration

Expanding into Taiwan offers incredible opportunities, but setting up a legal entity comes with complex regulatory, tax, and compliance challenges. Businesses must navigate foreign investment restrictions, corporate tax filings, labor laws, and payroll processing, which can delay market entry and increase operational costs.

An Employer of Record (EOR) provides a simplified, cost-effective alternative. It hires employees on your behalf, manages payroll, ensures tax compliance, and handles a large chunk of your administrative responsibilities. Best of all, you avoid the risks, time, and costs of setting up a legal entity here.

Here’s how an EOR simplifies your entry into Taiwan:

• Fast and hassle-free setup. Expand into Taiwan without company registration. Start operations within days instead of months.
• Effortless payroll and tax management. Ensure accurate salary processing, tax deductions, and social security contributions, all handled in compliance with Taiwanese regulations.
• Avoid legal risks. The EOR ensures you adhere to Taiwan’s employment laws, tax codes, and workforce regulations without internal HR complexities.
• Significant cost savings. Eliminate high upfront costs associated with company registration, legal fees, payroll administration, and ongoing compliance.
• Workforce scalability and flexibility. Easily hire, expand, or downsize without the long-term commitment and liabilities of entity registration.
• Seamless talent acquisition. Gain access to Taiwan’s skilled workforce with locally compliant employment contracts and benefits.
• Risk mitigation and legal protection. Reduce compliance risks, employee disputes, and financial penalties that result from employee misclassification, wrong work permits, or incorrect tax filings.

For businesses that want to quickly begin hiring and growing teams in Taiwan while avoiding complexity, an EOR offers an elegant solution for expansion. But before choosing your approach, here’s a detailed guide to registering a company in Taiwan.

A step-by-step guide to registering a company in Taiwan

Expanding into Taiwan requires navigating legal requirements, tax obligations, and labor laws.

Here is an eight-step guide:

Step 1: Choose your business structure

Before registering, determine the best legal entity for your business:

• Limited company: Suitable for small and medium-sized enterprises, requiring at least one shareholder and one director.
• Company limited by shares: Ideal for larger businesses, allowing multiple shareholders and the issuance of shares.
• Branch office: A foreign company’s extension in Taiwan, operating under the parent company’s name.
• Representative office: For non-commercial activities such as market research and business development.

Step 2: Reserve a business name

• Submit a reservation request for your Chinese company name to the Ministry of Economic Affairs (MOEA). As of 2025, MOEC contact information is: 8F, No. 7, Sec. 1, Jhongjheng District, Roosevelt Rd., Taipei City, Taiwan (R.O.C.). Or you can apply online.
• Ensure the name follows local naming conventions and is not already in use.

Step 3: Obtain foreign investment approval (if applicable)

• If you’re a foreign investor, apply for Foreign Investment Approval from the Investment Commission of the MOEA. This step is mandatory before proceeding with company registration.
• After obtaining approval, you must open a preparatory bank account in Taiwan and remit the capital. The amount should comply with regulatory requirements.
• A local certified public accountant (CPA) must verify the injected capital and issue a Capital Verification Report.

Step 4: Register your company

• Submit the Capital Verification Report and company registration application to the Department of Commerce under the MOEA.
• Once approved, you’ll receive a company registration certificate and a Unified Business Number (UBN).
• Required documents typically include:
  • Articles of incorporation
  • Business scope and operational plan
  • Shareholder and director information
  • Proof of minimum capital deposit (if applicable)

Step 5: Register for tax identification

• Apply for a Taxpayer Identification Number (TIN) from Taiwan’s National Taxation Bureau.
• Register for Value-Added Tax (VAT) if applicable to your business operations.

Step 6: Open a corporate bank account

• Open a corporate bank account to facilitate business transactions or convert your preparatory account into an official corporate one.

Step 7: Obtain business permits and industry-specific licenses

• Depending on your industry(e.g., finance, healthcare, e-commerce), you may require additional permits.
• Apply for relevant business operation licenses with local authorities.

Step 8: Register for labor insurance and social security

• Enroll employees in Taiwan’s labor insurance and national health insurance programs.
• Comply with employment laws, including pension fund contributions and payroll tax deductions.

The entire registration process can take 2 to 4 weeks, depending on the business type and approval timelines. For businesses that want a quicker market entry, an Employer of Record (EOR) is an excellent alternative to company registration. An EOR is also useful if your business wants to test the waters in Taiwan before incurring the significant costs of company registration. Before you decide, let’s break down these expenses.

Understanding the costs of company registration in Taiwan

Registering a company in Taiwan involves several costs, including government fees, legal expenses, and operational expenditures.

Here are some estimated costs:

• Company registration fees: NT$1 for every NT$4,000 of registered capital (minimum NT$1,000).
• Notary and legal fees: NT$10,000 – NT$30,000 (depending on service provider).
• Capital verification: Required for a company limited by shares (cost varies).
• Office rental: Starting from NT$10,000 per month for small offices in Taipei.
• Corporate tax: 20% standard rate on net profits.
• VAT (value-added tax): 5% on most goods and services.
• Payroll and social contributions: Includes labor insurance, national health insurance, and pension contributions.

Note: These costs are indicative and may vary based on your business. Consult an expert before deciding. Our team can also help you compare registration costs with an EOR.

Comparing costs: Legal entity registration vs. Employer of Record (EOR)

For businesses expanding into Taiwan, understanding the cost differences between setting up a legal entity and using an Employer of Record (EOR) can help.

Below is a cost comparison:

Cost category	Legal entity registration	Employer of Record (EOR)
Setup and registration fees	NT$300,000 – NT$600,000 (legal, registration, and setup fees)	No setup costs
Minimum capital requirement	Varies by business structure, can be NT$500,000+	Not required
Business licenses	NT$10,000 – NT$50,000 (depending on industry)	Included in EOR service
Monthly payroll and compliance	Company manages payroll, tax withholdings, and statutory contributions	EOR handles payroll, taxes, and labor law compliance
Accounting and auditing fees	NT$100,000 – NT$300,000 per year	Included in EOR service
Corporate tax (9–15%)	Company is responsible for tax filings (20% corporate tax rate)	EOR ensures tax compliance and proper deductions
Hiring timeline	4–8 weeks for full registration and setup	Immediate—EOR enables instant hiring and market entry
Employment contracts	Requires drafting and legal review	EOR provides locally compliant contracts
Risk and compliance	Business bears full responsibility for compliance and penalties	EOR ensures adherence to all Taiwanese labor laws

For businesses that want a cost-effective way to test the market without heavy investments, an EOR like Multiplier is a flexible, easy-to-scale, low-risk alternative to traditional entity registration.

Choose Multiplier for your Taiwanese expansion

Expanding into Taiwan can be a complex process, requiring businesses to navigate local regulations, compliance requirements, and administrative procedures. Instead of setting up a legal entity, partnering with a global Employer of Record (EOR) like Multiplier simplifies the process and ensures full compliance with Taiwanese labor laws.

• Quick market entry: Skip the long registration process and start operations immediately.
• Full compliance assurance: Our experts handle payroll, taxes, employment contracts, and statutory benefits.
• Cost savings: No need for a physical office, legal teams, or capital investments.
• Streamlined hiring: Easily hire top talent in Taiwan without setting up a local entity.
• Efficient payroll management: Timely salary payments, tax deductions, and compliance with Taiwan’s labor regulations.
• Multi-currency payments: Pay employees in New Taiwan Dollars (NTD) or any preferred currency.
• Employment contract management: Generate fully compliant contracts in Mandarin and English.
• Risk mitigation: Avoid penalties and legal issues related to non-compliance.

Multiplier simplifies workforce expansion in Taiwan. We want you to focus on growing your business with complete peace of mind. Learn how EOR-supported expansion can help—Book a demo today.