Setting up a company with 250000nt, dream or reality?ali

Business Money
1

Hi, I finaly decided to post here cause I keep going in circle like a dog chassing his tail.

Here’s what happened: I used to do handcraft work and to sell it during week ends on market in order to make a bit cash. It was selling well but handcraft takes a lots of time and Taiwanese people still wanted I give a dicount. So I decided to open a business even that field is really unknown to me. So I came back to France, save up about 350,000nt and came back at the en of last year to set up my company there. First I looked for suppliers and sales, once i found it I decided to go for it and set up that company as someone i knew had set up a company with 100,000nt like 2 years ago.

So I went to MOEA, where they were really friendly, positive, even made a meeting and were all really enthusiastic about my project (told me they could introduce me to some sale networks ect…). They even told me that my 250,000nt were enough to set up a business with no problems and that I would get an ARC from it. Then they told me to go to MOEAIC in order to start registering my company. There I met a really sweet lady that wasn’t as enthusiatic as the MOEA branch. She explained to me well that I could only open a limited company and that I should invest at least 500,000nt.

I was really confused then… So I decided to ask more places in order to know if I could open it. I asked the immigration: they said 200,000us. I called back MOEA: 200,000us (later they also told me the 500,000nt). I mailed MOFA who said "oh no problem, you just open the company, make the money transfert (250,000nt) and then you get the transaction certificate and you come back here and we give you ARC for as long as you want but not over 3 years.

I wasn’t quite sure about what the man from MOFA said was true or not so I went to a CPA, who charged 18,000 in order to set up the company but couldn’t apply for work permit and visa. So I went to Council of Labor Affairs where a pretty rude lady speaking too fast told me that I should invest 500,000nt in order to get a work permit and then apply ARC.

I was even more confused at that time, so I called back the man from MOFA who told me that i should invest 200,000us ==

So basicly here is what I found out . With 250,000nt you can open a company but you cannot work for your company… Does it make any sense? ^^

So here I am today, cause I read many blogs here that are all interesting but I have the feeling that laws are keeping changing in Taiwan. So here is what I would like to know:

1- Can I open a company with 250,000nt in Taiwan and being able to work in it?
2- Or should I open a branch in Hong Kong, France or Honolulu and set up a branch in Taiwan?
3- If so, do I need a minimal capital requirement in order to get a work permit?

Thanks

2

Read "llary’s guide…’ thread, do a search on here. I believe the branch office idea was a favoured option as to get an ARC through your own Taiwanese limited company has high capital and especially revenue requirements.

3

The bad news is that to get a manager’s ARC from a limited company it needs a capitalization of at least TW$500,000. The good news is that there are ways around it (such as rep office or branch office).

Yes, it is possible to set up a limited company in Taiwan or in fact almost any country in the world without being automatically entitled to residency rights. For example if I set up a company in France for 100 Euros over the internet it doesn’t make sense that someone should then just hand me a French resident visa.

In Taiwan the minimum capital for a limited company is now TW$50,000. It was lowered recently hence the confusion from government officials and quoted figures of $250,000; $200,000 etc… What that means is that any company must be founded with at least $50,000 cash but that applies to Taiwanese and foreigners alike (many countries such as the UK or US allow companies to be formed without proving the existence of capital and have no nominal minimum, which is why this is an alien subject for many people).

I started out here with less than $100k, it just takes a lot of hard work.

4

A helpful hint alright, you don’t always need an ARC to open and run a company, in fact I was a student when I opened a previous company here. However you need a way to live in Taiwan…hence the branch office (where at least your business interests and residency co-incide) or get married or get an ARC through another local company or be a student.
I opened another company recently and the capital amount has indeed decreased, before many people would use accountants or just get the money lodged temporarily, at least they have done away with that charade now. It makes sense for them to make it fairly easy to open a company as then they can get more tax!

5

Free advice - I’m a business consultant her - Sell at Traditional/Night Markets (as it appears you have been doing) and forget about the “formal business” procedure.

This is TAIWAN.

No Charge.

6

Wow thanks a lot for those fast answers, I am a bit in a rush now, but if i understand well I should open a company aboard and then make a branch in Taiwan? Thanks so much, it fels like seeing some light in that dark underground i have been in :smiley:

7

To open a rep. office is one way to get arc, but you can not have business transaction in TW that means you can’t issue TW invoice to your customer. To open branch office and get ARC, you still have to wire in $ equals to NT 500,000. Being a TW CPA, I will suggest you go find the CPA and discuss with them.

8

I’m not a CPA, here or in Taiwan, but I would suggest that if you DO employ a CPA, you choose one with a bit more knowledge than andrew1967! The guy doesn’t have a SCOOBY what he’s talking about! :noway:

9

I read the whole llary’s guide and it helped me to clarify the situation. It is possible to have a Representation office in Taiwan but the head office should be out of Taiwan. As a French I don’t really want to have it in my own country as it is over taxed and very complicated (to not say an administrative asylum) to run a business there. It seems that Hong Kong is the best place as i will produce in Guan Zhou.
However I see many websites that helps to “open” a business for 800$ or up to 5000 euros (that one is at the top of the rip off I think ^^) But they do not appear as CPA, would anyone know a good CPA and some good websites like the jusreagal one that tell simply in a board all we need to know for a limited company in hong kong?

Thanks :slight_smile:

10

Detailed setup - try to talk to Jusregal, they are a real CPA, they are well attuned to the needs of foreigners running business here.

There are several people offering to open HK companies, even in Taiwan.

11

establishing a company in Hk seems to be an easy job and you can buy one of those on shelf companies for around HK$3000 withen three days. virtual offices with full services and good address start from HK$1800. if you go to Hong Kong you can see those advertisements in newspapers.

12

Hi,

I got a 2 year ARC based on having the equivalent of US$100K in a local bank. I am set up as a company with me as sole owner. The procedure was very easy (though I used a CPA to help with the process). The capital doesn’t have to be used for any business venture, though it is likely the authorities will expect to see some kind of business activity should you want to renew the ARC. You are free to use your capital for personal use as soon as you get your approvals.

You can do it with less start-up capital (as you have been told), but I was advised to use US$100K as this “guarantees” you will get ARC.

Good Luck !