Forming a Limited Company: Taiwan Costs, Capital, Process, and the Hong Kong Cross-Border Option
Before you rush to check whether a company name is available, settle three things first: how much you expect to spend, how much capital to put in, and whether you will need cross-border payments or overseas clients down the line. This article focuses on market information for setting up a limited company in Taiwan, then contrasts it with a Hong Kong limited company so you can decide on your next structural step.
How much does it cost to form a limited company?
The basic cost of forming a limited company in Taiwan breaks down into government fees, capital verification, and agency/bookkeeping fees.
| Item | Typical Amount |
|---|---|
| Company name pre-check | Online NT$150; in-person NT$300 |
| Incorporation registration fee | NT$1 per NT$4,000 of total capital, minimum NT$1,000; online filing usually gets a NT$300 reduction |
| CPA capital verification | About NT$2,000–5,000 |
| Incorporation-only agency service | About NT$8,000–15,000, often including capital verification |
| Incorporation plus one year of bookkeeping | About NT$25,000–40,000 |
| Bookkeeping and tax filing | About NT$1,500–4,000 per month |
Doing it yourself means lower cash outlay, but you handle the name pre-check, the preparatory bank account, capital verification, registration, and tax registration yourself. If you use an agency, don't just compare prices—confirm whether the quote includes capital verification, tax registration, invoice application, and ongoing bookkeeping.
How much capital should you prepare?
Taiwan has abolished the minimum capital requirement for limited companies, so in theory you can register with just NT$1. However, if the company needs to rent an office, purchase stock, run ads, open a bank account, or sign contracts with corporate clients, capital that is too low usually prompts extra questions from banks and partners.
A small service business can start by budgeting NT$100,000–300,000; if you have inventory, payroll, or cross-border cash-flow needs, factor in the first three to six months of operating funds as well. Once capital reaches NT$500,000 or more, a CPA audit and certification is usually required. Do not verify capital with a loan and then immediately withdraw the funds—Article 9 of the Company Act carries criminal liability for false capital contributions and capital withdrawal, so this is not the place to cut costs.
Limited company setup process and timeline
A common process looks like this:
- Company name pre-check: first confirm the name is available on the Ministry of Economic Affairs' Commercial and Industrial Registration public query service to avoid trademark or similar-name disputes.
- Open a preparatory account: open the account in the name of the company's preparatory office.
- Deposit the capital: shareholders wire in their contributions to the preparatory account.
- CPA capital verification: obtain the capital audit report.
- Apply for incorporation registration: receive the unified business number once approved.
- Complete tax registration: finish business registration with the National Taxation Bureau.
- Apply for invoices and purchase certificates: handle this if you need to issue invoices.
Doing it yourself usually takes 3–4 weeks; with an agency and complete documents, about 2 weeks is more common. Online filing, the Citizen/Business Digital Certificate, FIDO, and digital accounts can let some cases obtain the unified business number faster, but the actual timeline still depends on bank account opening, supplementary documents, and the authority's review.
Limited company vs. company limited by shares: how to choose?
| Comparison | Limited Company | Company Limited by Shares |
|---|---|---|
| Shareholders | 1 or more | 2 or more; 1 allowed for a corporate shareholder |
| Supervisors | Not required | Usually required |
| Board of directors | No mandatory board | In principle at least 3 directors |
| Share issuance | Does not issue shares | May issue shares |
| Share transfer | Usually needs majority consent of the other shareholders | Relatively free in principle |
| Best suited to | Small teams, consultants, e-commerce, studio upgrades | Fundraising, employee stock ownership, frequent equity changes |
One key difference: a limited company can later be converted into a company limited by shares, but a company limited by shares cannot be converted back. When there is no near-term need for fundraising, share issuance, or complex equity arrangements, most small businesses start with a limited company.
Can you form a one-person limited company?
Yes. After the 2018 amendment, a single person can form a limited company. For freelancers, consultants, e-commerce brand owners, or early-stage SaaS founders, a one-person limited company separates personal and corporate liability and is simpler than a company limited by shares.
Limited company vs. sole proprietorship: tax and liability
A sole proprietorship (business firm) is faster and cheaper to set up, but the owner usually bears unlimited liability; a limited company limits liability to the shareholders' capital contributions. On tax, a company's profit-seeking enterprise income tax is 20% (see the Ministry of Finance eTax Portal); a firm's earnings are consolidated into the owner's individual income tax, and the rate may rise with the owner's income bracket.
If you only take on low-risk project work, a firm may be enough; if you will sign long-term contracts, hire staff, purchase stock, run ads, collect corporate payments, or bear product liability, a limited company is usually a better fit.
If your goal is going global and cross-border payments, should you consider a Hong Kong limited company?
Forming a limited company in Taiwan is a common choice for local operations; if your clients, suppliers, platform receipts, or cash flows already extend beyond Taiwan, a Hong Kong private limited company is worth comparing too.
| Item | Taiwan Limited Company | Hong Kong Private Limited Company |
|---|---|---|
| Shareholders/directors | Limited company: 1 or more | Minimum 1 shareholder, 1 director |
| Capital | No minimum capital; depends on operations in practice | Can start from HK$1 |
| Tax | Profit-seeking enterprise income tax 20%, business tax 5% | Profits tax: first HK$2M at 8.25%, then 16.5%, on a territorial source basis |
| Government fees | Registration fee calculated on capital | Registration fee about HK$1,545–1,720; business registration certificate about HK$2,350/year |
| Company secretary | No equivalent regime in Taiwan | Must appoint a Hong Kong resident or Hong Kong company as company secretary |
| Best suited to | Local Taiwan sales, employees, invoicing, local contracts | Cross-border payments, overseas clients, international platforms, outbound structures |
Hong Kong government fees and capital requirements can be checked against the Hong Kong Companies Registry announcements; differences in the tax regimes cannot be read directly as guaranteed tax savings. The actual tax burden, source-of-income determination, bank account opening, and filing obligations all depend on your operating model, transaction documents, and professional advice.
The scope of what Chan & Chung can assist with is limited to Hong Kong company formation, company secretary and annual compliance service coordination, and advisory on cross-border tax, source of income, and bank payment arrangements; such arrangements must be assessed case by case and coordinated with accounting, tax, or legal professionals. Regulated trust or company services are provided by Intelligent Services Limited (TCSP licence No. TC010349), not by Chan & Chung Consultancy Services Limited itself.
FAQ
What is the minimum capital to form a limited company?
Taiwan currently has no minimum capital requirement, so in theory NT$1 is enough to register. In practice, prepare at least NT$100,000–300,000 to avoid shortfalls in account opening, contract signing, or early operating funds.
Can I register a company at my home address?
Yes, but it may affect house tax and land value tax, and you should check your lease, community bylaws, and the actual nature of your business. Using it only as a registered address does not mean all tax costs stay unchanged.
Does a company with no revenue still need bookkeeping and tax filing?
Yes. Once incorporated, a company has bookkeeping and filing obligations; even with no income you should keep vouchers and file on schedule to avoid later back-filing and penalty risks.
Can one person form a limited company?
Yes. A one-person limited company suits entrepreneurs who want to separate personal liability from business risk but do not yet need the structure of a company limited by shares.
What conditions must a Taiwanese meet to form a limited company in Hong Kong?
A Taiwanese can own 100% of a Hong Kong company and can handle it remotely; however, a Hong Kong company must have a company secretary and a registered address. For a fuller assessment, see practical considerations for Taiwanese businesses going global with a Hong Kong company. Where regulated TCSP services are involved, they must be handled by a licensed service provider.
Conclusion
If your business is mainly in Taiwan, using a limited company to organize your liability, invoicing, and bookkeeping structure is usually a pragmatic starting point. If you will next face overseas clients, platform receipts, cross-border contracts, or regional market arrangements, then bring a Hong Kong limited company into the comparison. If you need to assess Hong Kong company formation, company secretary, annual compliance, and cross-border payment arrangements, you can start by booking a discussion from the Chan & Chung services page.