How to start a business in Taiwan as a foreigner (2026)
Starting a business in Taiwan as a foreigner: moderate.
Taiwan permits foreign nationals to establish companies and hold 100% equity in most sectors, subject to a mandatory Foreign Investment Approval (FIA) from the MOEA's Department of Investment Review before incorporation. A 'Negative List' prohibits or restricts foreign participation in sectors including certain telecoms, broadcasting, agriculture, and legal/accounting services. The end-to-end process, from name reservation through tax registration, typically takes 4-8 weeks and is partially managed through the MOEA's online One-Stop Portal.
Legal framework
Statute for Investment by Foreign Nationals; Company Act (ROC); administered by the Department of Investment Review (DIR), Ministry of Economic Affairs (MOEA)
Key points: starting a business in Taiwan
Foreign Investment Approval (FIA)
Foreign investors must obtain FIA from the MOEA Department of Investment Review prior to incorporating and remitting capital. This pre-approval step is mandatory and unique to foreign applicants; it verifies the nature and amount of capital contribution.
Negative List & sector restrictions
The Negative List for Investment by Overseas Compatriots and Foreign Nationals classifies certain industries as Prohibited or Restricted. Restricted sectors include wireless and fixed-line telecoms (49% direct FDI cap; 60% total foreign shareholding cap), cable TV, satellite broadcasting, certain agriculture, husbandry, fishing, forestry, transportation, and professional services such as law and accounting.
Minimum capital
Taiwan imposes no statutory minimum paid-in capital for most company types. However, if a foreign national requires a work permit as company manager, capital must be at least NTD 500,000 (~USD 15,000). Capital must be remitted and verified by a Taiwan-licensed CPA before incorporation is completed.
Registration steps & timeline
The process involves: (1) Chinese company name reservation with MOEA, (2) FIA from DIR/MOEA, (3) inward capital remittance and CPA verification, (4) adoption of articles of incorporation, (5) incorporation registration with MOEA, (6) concurrent tax, labor insurance, and pension registration. The MOEA One-Stop Portal handles most steps online. Total timeline is typically 4-8 weeks; subsidiaries may take 68-88 days.
100% foreign ownership generally allowed
Outside restricted and prohibited sectors, foreign nationals may own 100% of a Taiwan company. Taiwan lifted the general cap on total individual foreign shareholding in public companies in December 2000. Foreign-invested enterprises receive national treatment equivalent to locally-owned firms.
Proposed FIA threshold reform
The MOEA's Investment Commission has been drafting amendments to the Statute for Investment by Foreign Nationals that would replace the pre-investment FIA requirement with a post-investment reporting system for investments under USD 1 million in non-restricted sectors. Pre-approval would remain mandatory for restricted industries and larger investments.
Timeline of decisions
- Law · officialStatute for Industrial Innovation Amended: AI & Clean-Energy Investment Tax Credits Expanded for Startups
The Legislative Yuan passed three readings of SII amendments expanding eligible investment tax credits to AI products/services and carbon-reduction initiatives; maximum eligible expenditure rose to NT$2 billion and the individual angel-investor income-deduction ceiling increased from NT$3 million to NT$5 million, while the eligible startup age range widened to 2-5 years. The reform directly reduces the after-tax cost of founding and funding new ventures in strategic sectors.
Executive Yuan R.O.C. (Taiwan)
- Guidance · officialTaiwan Entrepreneur Visa Goes Fully Online; Validity Extended to Two Years
All Entrepreneur Visa applications became mandatory online submissions via the SMESA portal as of 1 July 2023, and the visa validity was extended from one to two years, with renewals permitted without leaving Taiwan. The change reduced administrative barriers for foreign founders who want to establish a company in Taiwan before securing a full residency permit.
Startup Portal Taiwan — SMESA, MOEA R.O.C. (Taiwan)
- Enforcement · officialFirst Mandatory Beneficial-Ownership Filing Deadline Under Company Act Art. 22-1
All non-listed, locally incorporated companies had to complete their inaugural electronic filing of directors, supervisors, and shareholders holding ≥10% of capital by 31 January 2019, per Article 22-1 added in the 2018 overhaul; failure carried fines of NT$50,000-NT$5 million per violation. The new AML disclosure layer raised transparency obligations for every newly registered entity from the moment of incorporation.
MOEA R.O.C. (Taiwan) — Law Portal
- Law · officialLargest Company Act Overhaul in Nearly Two Decades Takes Effect (148 Articles Amended)
Passed 6 July 2018 and effective 1 November 2018, the reform amended 148 of 449 articles: it eliminated the prior government-recognition requirement for foreign companies (allowing direct branch registration), introduced non-par-value shares to ease startup fundraising, added Art. 22-1 beneficial-ownership disclosure (AML compliance), and authorised virtual shareholder meetings. This single legislative act reshaped the entire foundational framework within which businesses are registered and governed in Taiwan.
Executive Yuan R.O.C. (Taiwan)
- Law · officialSII Amendment Introduces VC Pass-Through Taxation (Art. 23-1) and Angel-Investor Income Deduction (Art. 23-2)
Promulgated and enacted on 22 November 2017, the amendment extended pass-through tax treatment to venture capital limited partnerships meeting prescribed capital and investment thresholds, and created a personal income-tax deduction of up to NT$3 million for individuals investing ≥NT$1 million in startups aged under two years. This made Taiwan's Limited Partnership Act (2015) fiscally attractive for VC fund formation and angel investing.
Laws & Regulations Database of R.O.C. (Taiwan)
- Guidance · officialTaiwan Entrepreneur Visa Program Launched, Foreign Founders May Reside Before Registering a Company
MOEA's Small and Medium Enterprise Administration launched the Entrepreneur Visa, allowing foreign nationals to obtain a residency visa without first completing a company registration, removing a key chicken-and-egg barrier. Qualifying criteria included secured VC or government-fund investment, acceptance into a recognised incubator, or holding a domestic or foreign invention patent.
SMESA, Ministry of Economic Affairs R.O.C. (Taiwan)
Sources
- moea.gov.tw/Mns/dir_e/Investment/DirQuestionsAnswers_En.aspx?menu_id=42942
- dir.moea.gov.tw/businessPub.view?lang=en&op_id_one=1
- law.moea.gov.tw/EngLawContent.aspx?lan=E&id=10107
- state.gov/reports/2025-investment-climate-statements/taiwan/
- english.tcooc.gov.taipei/cp.aspx?n=C6AFA1300C30BB27
- startup.sme.gov.tw/en/incorporation
- iclg.com/practice-areas/foreign-direct-investment-regimes-laws-and-regulations
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Next topicOrientation, not legal advice: verify against the primary sources linked above. Last verified 24 May 2026. Methodology & how to cite · State of Technology Regulation 2026