Forming a local company - process


#61

Mr. He: This is useful information. I guess it will depend on the nature of the business. I understand that the markup on coffee and food sold at a cafe is very high. If so, it might well be worth running a business with a gross of NT$3 million. I suppose that’s why see so many people setting up cafes.


#62

There is another reason to that people set up cafes. You do not need to invent a business model. You basically own the job of being a cafe manager, with some extra decision making powers thrown in.

In my industry, margins are limited, I would think that I in the fourth year of business netted NT$40k a month. If I were still on that level, I would look for a job, however in the startup and learning phase, it’s OK. Then again, I was and am playing a long game.


#63

There is another reason to that people set up cafes. You do not need to invent a business model. You basically own the job of being a cafe manager, with some extra decision making powers thrown in.

In my industry, margins are limited, I would think that I in the fourth year of business netted NT$40k a month. If I were still on that level, I would look for a job, however in the startup and learning phase, it’s OK. Then again, I was and am playing a long game.[/quote]

Thanks. Another great point.


#64

The first time you run a business, you learn, may not earn.


#65

Hi guys,

I’m not sure if there is a thread on my situation as I’ve already searched through the forum - but if there is, please let me know!

My wife and I plan on making an online business within the service industry. Since I will be receiving my JFRV via marriage with Taiwanese citizen/resident by the next week, I understand that I won’t have any work permit issues. So as I understand it, from reading through this thread, I won’t be needing any capital reqs for the formation of my company (correct me if I’m wrong).

As to getting started in obtaining a business license, what is the process in my case? Do I go straight to a lawyer for all the paper work? What would be my average quote? Would it be cheaper for my wife to go to a local lawyer? Are there any significant drawbacks for doing the latter as a US citizen with little to no understanding of the Chinese language? I figured my wife would translate most of the papers/rules/regs with the best of her abilities, however.


#66

There are no capital requirements.

If you are here in Taiwan already, you can either set up the company yourself with the information in Elias Ek’s useful book plus the information on the Invest in Taiwan site.

Alternatively, get help from an English-speaking accountant such as JusRegal. It’s much cheaper than going to a lawyer and they do a good job.

Lawyers are more useful if you are outside Taiwan and the investor is a corporation. I wouldn’t recommend randomly hiring a Taiwanese lawyer. Most are not business lawyers. Another situation in which a lawyer is a good idea is if you have a group of investors. In that case, you probably need advice on shareholder agreements and structuring things properly. If you are a US citizen, it would be a good idea to consult a US lawyer or CPA about US tax issues.

Good luck–and make sure you understand Taiwanese law on return and refunds if you are doing an online business.

[quote=“kimcheese”]Hi guys,

I’m not sure if there is a thread on my situation as I’ve already searched through the forum - but if there is, please let me know!

My wife and I plan on making an online business within the service industry. Since I will be receiving my JFRV via marriage with Taiwanese citizen/resident by the next week, I understand that I won’t have any work permit issues. So as I understand it, from reading through this thread, I won’t be needing any capital reqs for the formation of my company (correct me if I’m wrong).

As to getting started in obtaining a business license, what is the process in my case? Do I go straight to a lawyer for all the paper work? What would be my average quote? Would it be cheaper for my wife to go to a local lawyer? Are there any significant drawbacks for doing the latter as a US citizen with little to no understanding of the Chinese language? I figured my wife would translate most of the papers/rules/regs with the best of her abilities, however.[/quote]


#67

Thank you for the response.

[quote=“Feiren”]There are no capital requirements.

If you are here in Taiwan already, you can either set up the company yourself with the information in Elias Ek’s useful book plus the information on the Invest in Taiwan site.

Alternatively, get help from an English-speaking accountant such as JusRegal. It’s much cheaper than going to a lawyer and they do a good job.

Lawyers are more useful if you are outside Taiwan and the investor is a corporation. I wouldn’t recommend randomly hiring a Taiwanese lawyer. Most are not business lawyers. Another situation in which a lawyer is a good idea is if you have a group of investors. In that case, you probably need advice on shareholder agreements and structuring things properly. If you are a US citizen, it would be a good idea to consult a US lawyer or CPA about US tax issues.

Good luck–and make sure you understand Taiwanese law on return and refunds if you are doing an online business.

[quote=“kimcheese”]Hi guys,

I’m not sure if there is a thread on my situation as I’ve already searched through the forum - but if there is, please let me know!

My wife and I plan on making an online business within the service industry. Since I will be receiving my JFRV via marriage with Taiwanese citizen/resident by the next week, I understand that I won’t have any work permit issues. So as I understand it, from reading through this thread, I won’t be needing any capital reqs for the formation of my company (correct me if I’m wrong).

As to getting started in obtaining a business license, what is the process in my case? Do I go straight to a lawyer for all the paper work? What would be my average quote? Would it be cheaper for my wife to go to a local lawyer? Are there any significant drawbacks for doing the latter as a US citizen with little to no understanding of the Chinese language? I figured my wife would translate most of the papers/rules/regs with the best of her abilities, however.[/quote][/quote]


#68

I am now halfway (?) through the process and have all the documents in hand for the company registration. I used the one-stop website for the name application and intend to use it for corporate registration too. Does anyone have experience with this? (i.e. is there any part that will make it impossible for foreigners to complete the process online?)


#69

I am a foreigner and own a Taiwanese limited liability company. I now want to start a 50/50 Joint Venture company with a Taiwanese-owned company. For this new venture, do we need to go through the Foreign Investment Committee again or does this count as investment by two local partners (since my company is a local entity)?

Has anyone been in a similar situation before?