Teaching Small Number of Privates in home: Rules?

I thought you were allowed to have a small tutoring thing but a local friend told me this horror story.
He lives in a town full of jealous and incestuous cram school owners and a few big unlicensed yet well connected, if you know what I mean , schools run by “Uncles”.
A long time ago, he got a visit from the police, they just told him to take down his sign. All was well.
Recently, in the last couple years he was driven to quit. He told me, it doesn’t matter how many students you teach, 2, 4 or whatever.
The police raided him a couple of times over the years giving him a warning telling him to cease his operation, get licensed within 30 days or face a $30,000 fine.
These actions come only when other cram school owners make complaints. it’s nasty to pick on a retired gentleman who does a lot of community service for the small town.
so what are the rules and should foreigners be worried? By foreigners I mean people with work rights who have permanent residency.

He’s doing it in his home? I guess that’s clear from the title. It would seem that if you’re teaching students in a fixed location you are certainly vulnerable.

depends on local governments. Iirc, it should be registered for 4 or more students in Taipei city. In new taipei city, no lower limit.

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Seems to be 5 or more in Taipei to be considered a “cram school”. That would be 5 in total, and not at one time. But I’m not sure if it means that no other regulations apply if there are less than 5.

http://www.laws.taipei.gov.tw/lawsystem/wflaw_articlecontent.aspx?lawid=p05h1005-20110809&realid=05-08-1005

第 三 條 本規則所稱補習班,指以補充國民生活知識,傳授實用技藝或輔導升學為目的,對外公開招生、收費、授課且有固定班址,預收學生人數並達五人以上之短期補習班。

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There’s no mini cram school or small tutoring center license? I believe you need to have a minimum number of classrooms (3) even if you only use 1.

In new taipei city, floor area of the building should be more than 70 m2, and class room area should be more than 30 m2.

補習班之班舍及教室,應設置於補習托育類用途之建築物。補習班之班舍總面積不得少於七十平方公尺,教室總面積不得少於三十平方公尺,平均每一學生使用教室面積不得少於一點二平方公尺。

Certainly not so in Taipei. Where is this?