Hi, I read a lot of topics here and around the web about opening an LLC in Taiwan as a foreigner, got pretty familiar with most of the steps, but still couldn’t find direct confirmation to some of my questions
I hold a work ARC and am thinking of opening an LLC on my own. Is it legal to open a company while being employed? Is there anything like the second work permit I should get before starting the registration process?
If anyone went through the same process, would highly appreciate sharing your experience
Thanks in advance!
Yes, if you don’t have an open work permit, you’ll need to attain the work permit when opening it up.
In a nutshell, you would, with your CPA, open the business first, and then have the headless company hire you as their ‘specialist’ like any other job.
And you’ll need to import at least $500000 TWD or equivalent into the country as paid-in-capital to be eligible for the work permit.
With the work permit, you’d be entitled to make your ARC purpose as a worker of your company. It is legal to hold two work permits. Changing your ARC to this company does not interrupt your eligbility for an APRC or Citizenship.
I do have a question, how long have you had this ARC for?
Does it mean that my second work permit will be counted as “work permit by investment”? Or I can’t define my own starting capital because I’m not an open work permit holder?
Thank you lots for such a detailed response. I’ve had this ARC for 2 years now
No. The work permit will look and be the same as any other. If you get an ARC, it will still be an employement ARC. Investment ARCs are for those who invest $200000 US into Taiwan. Those come with less restrictions. You’re just getting hired by a headless company.
The requirements are $500000 TWD paid-in-capital minimum for the work permit.
I’d wait a few months. maybe wait till it’s 2½ or 3 years in. The maximum the work permit is valid for is three years, but it’s up to the discretion of the Workforce development agency. To renew the work permit, you need to show about $3 million TWD in gross revenue for the previous year of business.
BUT!
If you hit 5 years on your ARC before that, then you can get your APRC and subsequently, the open work permit, which means you are home free and not required to show sales figures. I’d wait one year to be better protected. The MOE and WDA seem to be a bit more strict with foreign startups than when I opened.
I was given three years for both my work permits. But I’ve heard anecdotes of others receiving less time.
Does it need to be imported? Can you use your savings from your Taiwanese bank account instead? It doesn’t seem to be explicitly stated in Article 39.
Once you’ve got your work permit through your headless company, can you resign from your existing employment outside your headless company without it affecting your ARC? Or should you change your purpose of residence on your ARC so that your work permit through your headless company becomes your primary work permit and listed on your ARC?
Yes. It needs to be foreign investment. There may be a way to use Income as a proof of investment, but the CPA knows more than I do about this.
You just change the job as if you were changing to any other job. It doesn’t affect time contributed to the APRC. That’s why I suggest doing it with about two years remaining on your journey to the APRC.
