General

Details of the business scope of a profit-seeking enterprise in Taiwan must be registered with the authorities, and licenses must be obtained prior to commencement of operations. Some business activities cannot be carried out in the form of a corporation. These include cram schools, professional accounting, legal and medical services and other specified businesses.

A company may be formed as an unlimited company, an unlimited company with limited liability shareholders, a limited company or a company limited by shares. A limited company and a company limited by shares are the most common in Taiwan. A branch office or a representative office of a foreign company may also be used.

Company

There are two types of company in Taiwan, a limited company and a company limited by shares.Both types of company has the following natures:
• possess legal person status
• liability of each shareholder limited to capital contribution.

A foreign company or individual may set up a company for the purpose of doing business in Taiwan. A company that is a subsidiary of a foreign company differs from a branch office in that it is a Taiwan-based profit-seeking business entity with foreign investors. A Taiwan-domiciled company or subsidiary may have other branch offices in Taiwan and overseas. Aside from business areas designated in the Negative List for Foreign Investment, companies formed by foreign companies or foreign individuals in Taiwan and approved by the Investment Commission under the Ministry of Economic Affairs are not subject to foreign ownership restrictions. Aside from the specifically designated minimum capital requirement for certain industrial sectors, starting 2009, there is no minimum capital requirement, however, initial capital should be sufficient to at least cover organisation costs incurred when establishing the company.

Limited Company
• Generally requires a minimum capital contribution of NT$250,000.
• Should have at least one shareholder.
• Should have at least one, but not exceeding three, directors; no supervisor required.

Company Limited by Shares

• Generally requires a minimum capital contribution of NT$500,000.
• Should have at least one corporate shareholder or two individual shareholders
• Shares held by promoters shall not be transferred until one year following incorporation.
• Should have at least three directors and at least one supervisor.