Taiwan Company Registration & Legal Setup

Framework

IRON LAW: Entity Type Determines Everything Downstream

The choice between 行號 (sole proprietorship), 有限公司, and 股份有限公司
determines: liability exposure, tax treatment, fundraising ability, and
exit options. This decision is hard to reverse — choose based on your
3-5 year plan, not just today's simplicity.

Entity Type Comparison

| Feature | 行號 (Sole Prop) | 有限公司 (LLC) | 股份有限公司 (Corp) | |---------|----------------|--------------|------------------| | Liability | Unlimited personal | Limited to capital | Limited to capital | | Min. capital | None (but need proof) | No minimum (since 2018) | No minimum (since 2018) | | Shareholders | 1 person | 1+ (max no limit) | 2+ (or 1 for gov't/corp shareholder) | | Fundraising | Cannot issue shares | Limited (no public offering) | Can issue shares, convertible notes, ESOP | | Tax | Personal income tax | Corporate tax 20% | Corporate tax 20% | | Best for | Freelancers, side projects | Small teams, lifestyle businesses | Growth startups, seeking investment |

Registration Process (股份有限公司)

Phase 1: Pre-Registration (1-2 weeks)

1. Choose company name → search on 經濟部公司名稱預查系統 (must be unique)
2. Prepare Articles of Incorporation (公司章程)
3. Open a bank escrow account (籌備處帳戶) and deposit capital
4. Obtain capital verification from CPA (會計師資本額查核)

Phase 2: Company Registration (1-2 weeks)

1. Submit to 經濟部 (MOEA) for company registration → get 統一編號 (Tax ID)
2. Register with local 商業處 for business registration
3. Register with 國稅局 for tax filing obligations
4. Register with 勞保局 for labor insurance (if hiring)

Phase 3: Post-Registration (ongoing)

1. Open company bank account (with 統編)
2. Set up accounting system (帳冊)
3. Register for e-invoice if B2C (see tw-einvoice-guide)
4. Apply for relevant permits (food, medical, financial services have additional requirements)

Key Documents Needed

| Document | Purpose | Where to Get | |----------|---------|-------------| | 公司章程 (Articles) | Defines company structure, rules | Draft with lawyer or use template | | 股東同意書 | Shareholder consent for formation | Signed by all shareholders | | 董事願任同意書 | Director acceptance | Signed by directors | | 會計師資本額查核報告 | Capital verification | CPA firm | | 公司設立登記表 | Registration application | 經濟部 website |

Common Startup Legal Tasks

| Task | When | Estimated Cost | |------|------|---------------| | Company registration | Day 1 | NT$5K-15K (DIY) or NT$15K-30K (via accountant) | | Trademark registration (TIPO) | Within first 3 months | NT$3K filing fee + NT$10K-20K if using agent | | Employment contract template | Before first hire | NT$5K-15K (lawyer draft) | | Privacy policy (PDPA compliance) | Before collecting user data | NT$5K-10K (lawyer draft) | | Shareholder agreement | Before accepting investment | NT$20K-50K (lawyer draft) |

Output Format

markdown
# Taiwan Startup Legal Checklist: {Company Name}

## Entity Selection
- Recommended type: {行號 / 有限公司 / 股份有限公司}
- Rationale: {why this fits the user's situation}

## Registration Checklist
- [ ] Company name pre-check (經濟部)
- [ ] Articles of Incorporation drafted
- [ ] Capital deposited + CPA verification
- [ ] Company registration (統編 obtained)
- [ ] Tax registration (國稅局)
- [ ] Labor insurance registration (if hiring)
- [ ] Business bank account opened

## Estimated Timeline & Cost
| Step | Timeline | Cost |
|------|----------|------|
| {step} | {days/weeks} | NT${X} |

## Next Steps
1. {immediate action}

Gotchas

• 統一編號 is your identity: The 8-digit 統編 is used for everything — tax filing, invoicing, contracts, bank accounts. Get it first, then set up everything else.
• Capital verification is a one-time check: CPA verifies capital at registration. After that, the money can be used for business operations. You don't need to keep it sitting in the bank.
• Foreign founders: Non-ROC nationals can register companies but need an ARC (居留證) or APRC, and there are additional MOEA investment approval requirements.
• Address matters: The registered address determines which tax office you deal with. Using a virtual office is legal but may trigger more scrutiny.
• This is educational guidance, not legal advice: Taiwan company law is complex. Consult a licensed accountant (會計師) or lawyer (律師) for specific situations.

References

• For tax obligations after registration, see the tw-tax-basics skill
• For e-invoice setup, see the tw-einvoice-guide skill