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How to Set Up a Taiwan Branch Office (2025 Edition)
Updated on September 1, 2025
Establishing a branch office in Taiwan is an excellent strategy for foreign companies looking to expand into Asia. With its vibrant economy, favorable business infrastructure, and strategic location, Taiwan offers a compelling base for regional operations. This guide walks you through essential steps, legal obligations, and timelines.
Pros and Cons of Setting up a Branch Office
Setting up a branch office in Taiwan offers several advantages for foreign companies. The registration process is relatively straightforward, it provides direct access to Taiwan’s diverse markets, and it positions your business in one of Asia’s most strategic locations. Another key benefit is that income tax is imposed only on the branch’s Taiwan-sourced profits and no dividend tax when the branch office remits after-tax profits to its foreign head company.
That said, it is important to recognize that a branch office in Taiwan is not an independent legal entity—it functions purely as an extension of the foreign parent company. As a result, the head company is fully liable for all actions of the branch. For the comparison of the limited company and branch office, please read the article:
Company structure comparison: Limited company VS Branch Office
However, if your foreign head company provides services to Taiwan clients, the Taiwan branch will be considered a Permanent Establishment in Taiwan of the head office. Therefore, the branch office is required to file VAT and income tax for the services rendered by the foreign head company.
Extension reading: Tax Implications for Foreign Service Providers with a Branch in Taiwan
Requirements for Setting Up a Branch Office in Taiwan
Chinese Company Name
The name of a branch office should follow this format: [ Foreign head company name] + Taiwan Branch
For example, a UK-registered company named Songjer Consultancy Limited applies to set up a branch office in Taiwan, the branch office name would be: Songjer Consultancy Limited Taiwan Branch
Additionally, every Taiwan branch is required to register under a Chinese name. Our team can assist in creating a Chinese business name that either reflects the sound of your English name or conveys a similar meaning.
Registered Operating Fund
Registered operating fund is the fund that helps the branch sustain the business operation. You must determine the registered operating fund for your Taiwan branch. The funds should be remitted from the head company’s bank account in foreign currency and converted into New Taiwan Dollars for registration.
Business Scope
A Taiwan branch is generally allowed to conduct the same business activities as a local company under Taiwan’s Company Act. However, some business activities are regulated. For example, if you're planning to run a pet store that breeds, trades, and fosters pets [A401031 Pets Service Manufacturing], you'll need to obtain a business permit from the Council of Agriculture. Similarly, if you plan to register a pharmaceutical company [ C802041 Drugs and Medicines Manufacturing ], you'll need to obtain a business permit from the Ministry of Health and Welfare.
Legal Representative (Responsible Person)
The branch must appoint a Legal Representative. This individual can be of any nationality, and there is no requirement for them to reside in Taiwan.
Branch manager
The branch must appoint a Branch Manager. This individual can be of any nationality. The Legal Representative and the Branch Manager can be the same person.
Registered Address
A physical address is mandatory for branch registration. Companies may either lease an office or use a business center address for registration purposes. A signed lease is mandatory for branch registration.
Extension reading: Choosing the Right Registered Address
Taiwan Branch Registration Process
The procedure for registering a branch office in Taiwan is quite similar to setting up a limited company. You must prepare the required documents and submit them to the Department of Commerce, Ministry of Economic Affairs. The entire process generally takes about two months, depending on government and bank processing times. The key steps are as follows:
1. Reserve a Chinese company name with Moea
2. Apply for investment approval with Moea
During the process, you are required to disclose the head company's holding structure down to the ultimate beneficial owner, who must be an individual. This involves providing the shareholder list for each layer of the holding companies.
3. Open a preparatory bank account
Setting up a preparatory business account to receive the operating fund is the mandatory step. Please refer to the article: Opening a business bank account in Taiwan.
4. Remit the capital and verify it by a CPA
Once the remittance of capital has been confirmed, the operating fund needs to be verified by a Taiwan CPA as part of the company registration process.
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5. Apply for branch registration
6. Register for VAT with the local tax office
7. Convert the preparatory bank account into an official account and open an online bank account.
FAQ:
(1) What is the minimum registered operating fund for the branch?
There is no statutory minimum. However, to ensure smooth operations, we recommend setting the amount sufficient to cover the business activities for at least three months without relying on additional funding. If the initial capital is set too low, the authorities may require the company to submit a 3-year financial plan demonstrating its ability to operate sustainably with limited capital.
In addition, if you plan to apply for a work permit for a foreign national to serve as the company’s manager, the fund must be over or equal to NTD 500,000.
(2) I am still looking for a permanent office. Can I register the company in a business center temporarily?
Yes. Finding a suitable office can be challenging with so many factors to consider. You may temporarily register your company at a business center or even at your home, and then relocate to a permanent office later. However, please note that certain types of businesses — such as import/export and trading companies, restaurants, and manufacturers — are not permitted to register in a business center or residential address. In such cases, the government may reject the application.
Estimated Timeline
The whole process should take about 8~10 weeks
Post-Incorporation Compliance
a. Export/Import Registration
Businesses must apply to the Bureau of Foreign Trade to register as importers or exporters in Taiwan. After approval, an Import/Export License will be issued. In some cases, additional permits or certifications, such as product-specific permits or certificates of origin, may also be required.
Businesses must maintain compliance with all relevant import/export regulations, as violations can result in fines, penalties, or disruptions to operations.
b. Work Permit Application
If the company intends to employ foreign nationals, it must apply for work permits through the Ministry of Labor. The process generally requires proof of sufficient paid-in capital, employment contracts, and supporting documentation of the employee’s qualifications.
c. Trademark Registration
Companies may register their trademarks with the Taiwan Intellectual Property Office to secure brand protection in Taiwan. Registration helps safeguard against infringement and ensures exclusive rights to use the mark in commerce.
d. Copyright & Patent Registration
To protect intellectual property, companies may file copyright or patent applications with the Intellectual Property Office. Patents are essential for inventions and technologies, while copyright protects creative works.
e. VAT filing every two months
After the branch setup, it needs to register for Value-Added Tax (VAT) with the local tax authority. VAT returns are filed every two months, and failure to submit on time can result in penalties. Maintaining accurate invoicing and bookkeeping is essential for compliance.
f. Accounting and Daily Bookkeeping
All companies in Taiwan are required to maintain proper accounting records in accordance with accounting principles. Daily bookkeeping ensures accurate financial statements, supports tax filings, and prepares the company for potential audits.
g. Annual Company Income Tax Filing
Either the company or the branch needs to file annual corporate income tax returns with the National Taxation Bureau, typically due by the end of May for the preceding fiscal year. The return must include audited financial statements if revenue exceeds statutory thresholds.
VAT, company income tax, salary, and shareholder meeting filing schedule
h. Annual Shareholders Meeting Filing
A shareholders’ meeting must be held annually to approve financial statements, allocate profits, and make key corporate decisions. Resolutions must be recorded and submitted to the Ministry of Economic Affairs (MOEA) as required.
i. Employee Health Insurance and Labor Pension Enrollment
Employers are required to register employees for National Health Insurance (NHI) and the Labor Insurance program, as well as contribute to the Labor Pension Fund. These obligations ensure employee welfare and compliance with labor laws.
j. Payroll Calculation, Compliance, Submission, and HR Management
Employers must calculate and withhold income tax, labor insurance, health insurance, and pension contributions from employees’ salaries each month. Payroll reports must be submitted to the relevant authorities on time to avoid fines or penalties.
k. Human Resource Management
Human Resources management includes establishing employment contracts, maintaining employee records, and ensuring compliance with Taiwan’s labor laws and regulations. Effective HR management also involves handling onboarding, performance evaluation, and employee relations to support both business operations and workforce well-being.
Incorporation
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Company Registration
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Branch Office Registration
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Rep Office Registration
Accounting and Tax
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Taiwan Company Tax
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Taiwan Individual Tax
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VAT Filing
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Bookkeeping
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Tax Benefit Application
Managing Business
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Business License
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Payroll and Compliance Service
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Registered Office
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Taiwan Statutory Compliance
Audit
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Tax Attestation
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Financial Statement Audit
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Special Purpose Audit