Forming a local company - process


#41

You do not always have to bring money in from abroad.


#42

Actually, I think you can probably do this yourself. Or just go to the Investment Commission and ask them for help. It's just a matter of ticking off a few boxes on a form (in Chinese of course).

In the end, you may well save time, aggravation, and money by paying someone to do this for you.

BTW, Lord Lucan's guide earlier in the thread contains just about everything you need to know. Buy the man a drink the next time you see him.


#43

Hi all

Thanks for this great post, indeed a perfect guide !
However I'd like to get some more clue about these two steps... when you say they reject everything upper 500,000, you mean that if you invest like.. 1,000,000 you will have to make 2 different transfer ? :ponder:

And about the step 10. You mention the amont of US$200K... is that the amont of investment that make you automaticly have and ARC/working permit without any education proof ? With TW$900K you will have to give educations proof to get though the arc and work permit procedure ?

Thanks very much again

Quick presentation of myself by the way, since I'm new here. I just came back home (France) from Taiwan where I spent the last year. Planning to go back as fast as I can with some business projects :slight_smile: I reaaally enjoy this forum wich is a great source of informations for me... far from Taiwan make it not really easy to talk with CPA over emails...

:bow:


#44

Hi, I need advice here.

My business partner and I need to form a local company. I am a non-resident, but have Taiwan ID and Passport, while he is a foreigner. We've agreed to a certain split in the ownership of the company.

Can someone advise on how we might go about forming this, or who we can call/talk to?

Thanks in advance.


#45

Sorry for the late reply. Any amount over the amount on the form will be sent back. I used 500k because it was the minimum. You have to make a turnover of 6 times your initial investment amount to renew the ARC, so 6 times 500 is 3m. You'll probably be putting in more than 500k. You can always do that after the company is set up.

At the time I did it, an investment of US$200k or more gets you a residence permit from the Foreign Investment Commission as your sponsoring entity in your capacity as a foreign investor. They told me a person in that category would not need a work permit as such.


#46

Got my answer.

Here's our scenario:
Two people forming a business: 1 is a non-resident with Taiwan Passport and Taiwan ID, and 1 a foreigner.

  • Foreigner is not going to work in Taiwan. So no ARC or Work Permit needed.

I was quoted $NT17,500 by a local Acct Firm, whereas I was quoted $NT25,000 from Victor over at JusRegal CPA (they run the Ads here). However, JusRegal was very professional, thorough, and fluent in English. If I required other services besides Company Registration, I would probably go with JusRegal CPA.

Company Registration Overview:
1. The entire process will take 5 weeks
2. One person must be the 'Director' of the company. This person will be the main point of contact for all legal/admin matters. This has no impact on shareholder value.
3. The foreigner must appoint an 'Agent' (aka Power of Attorney) in Taiwan prior completing company registration. This is a way for the government to verify that the person is real. The agent must be someone with a Taiwan ID and Passport. Agent would need to go to MOEA to sign papers.
4. The 'Director' will have an interview with Tax Personnels.
5. No minimum working capital needed.
6. Must have a business bank account setup before interview with Tax Personnels.


#47

I just went through the whole process on my own. I set up a business (商業), not a company, however. (I'm still not certain exactly what the differences are, but for my business, either would have been fine, with no difference in my business practice or taxation.)

It's fairly straightforward, but there is little to no information out there on how to get it done--not for free at least. It took me about two months in total, and less than NT$4,000 in costs (not counting my "office," which I'm paying NT$2,625/mo. for in Taipei City).

If anyone has questions about the process, feel free to PM me.


#48

Hmmm... there is no type of business entity called a 商業. Perhaps you set up a sole proprietorship? The big difference is limited liability. Also a sole proprietorship cannot obtain work permits for foreign employees or managers.


#49

I believe what Mianbao did is 商業登記. It could either be sole proprietorship/partners. This type of business form is fine as long as it is small.
However, it would be difficult to expand due to rules on selling off partnership. If one considers growing the size of business in the future, the company form is recommended.


#50

Sorry if this is the right place for my question - I looked around this subforum, but I find this whole subject a bit confusing.

I was wondering what are requirements for a foreigner who wants to start a small business here and has no visa at the moment. By small business I mean some sort of coffee shop, market stall, service operation etc...

Is it at all possible? I could come up with some cash (up to 500k if thats the requirement I keep hearing about) and perhaps some Taiwanese local contacts...but thats about it.


#51

How are you staying here?


#52

I`m from a visa exempt country - can stay up to 90 days.


#53

[quote=“youxia”]Sorry if this is the right place for my question - I looked around this subforum, but I find this whole subject a bit confusing.

I was wondering what are requirements for a foreigner who wants to start a small business here and has no visa at the moment. By small business I mean some sort of coffee shop, market stall, service operation etc…

Is it at all possible? I could come up with some cash (up to 500k if thats the requirement I keep hearing about) and perhaps some Taiwanese local contacts...but thats about it.[/quote]

Hello all, any updates on this matter?


#54

I contaced Jusregal and another accounting firm, they gave me some clear information so its best you ask them with your particular situation.
i.e look for some accounting firms or other firms that assist in company registration for a foreigner.


#55

[quote=“youxia”]Sorry if this is the right place for my question - I looked around this subforum, but I find this whole subject a bit confusing.

I was wondering what are requirements for a foreigner who wants to start a small business here and has no visa at the moment. By small business I mean some sort of coffee shop, market stall, service operation etc…

Is it at all possible? I could come up with some cash (up to 500k if thats the requirement I keep hearing about) and perhaps some Taiwanese local contacts...but thats about it.[/quote]

Try the book, “How to start a business in Taiwan”. Here’s the Facebook page, leave a PM and and they’ll get back to you.

https://www.facebook.com/HowToStartABusinessInTaiwan?fref=ts


#56

Hi youxia,

Indeed, with 500,000 in paid in capital you can get a visa as the boss of your own company. The problem is that your second year in operation you need to hit NTD3,000,000 in revenues. So as long as you can sell enough coffee or services to reach that goal you can keep your Visa.

Our book How to Start a Business in Taiwan covers most issues you need to know in order to start a business in Taiwan. And it is written specifically for foreigners: startabusinessintaiwan.tw/. Easiest way to buy it is via our website.

If you are interested in starting a coffee shop or restaurant you might also be interested in an event we are organizing on August 5 about that very topic, in English. I will post the info about it in a few days.

Cheers,
Elias


#57

I just started the process and am now filling in the form for the foreign investment commission. In the form, there is an option to pay part of the paid in capital in NTD and part in foreign currency, as long as you can prove that you legally earned the NTD part (i.e. you have income tax receipts). Has anyone experience with this/is there anything I should be aware of?

Thanks!


#58

I do think it is strange that they have the 3.000.000 NTD rule. For companies that sell products it would be not that difficult to reach that goal I believe. But it is mainly making it more difficult for startups and entrepreneurs that want to build a project that does not generate revenue at start. When you want to promote startup and entrepreneur community in Taiwan, but at the same time have these limitations, it does not make much sense to me. Maybe they should give startups at least 3 years. Does anybody know if they actually enforce this rule?


#59

Yes the rule is enforced strictly as would-be entrepreneurs who have sunk NT$500k and a year of their life discover to their dismay. But you just need to generate NT$3 million in sales, not profit. Do you really want to do a business that has less than NT$3 million in sales? In most cases, a business that small isn’t worth doing unless it is a labor of love.

I completely agree that the rule doesn’t make sense for the service industry.

There are new exceptions for startups with venture funding capital, IP etc but they don’t apply to the kind of retail small business you are talking about. The government wants foreigners to invest in tech businesses (esp. software). It doesn’t prohibit foreigners from setting up coffee shops and market stalls but nor do it encourage them to do so. That is understandable. Taiwan has plenty of coffee shops and market stalls. It doesn’t need foreign investment or expertise to do these kinds of business.


#60

Well, I would if I did it set up a representative office as well, and then have the local limited, getting my work permit through the representative office.

I only made a turnover of NT$3 million in my fourth year of business.