According to the 2019 operation status investigation and analysis report of the Investment Commission, the overseas investment cases in 2018 have increased by 6.03% compared with 2017, and the total investment amount has increased by 52.27%, which is the highest amount in 10 years. The five industries with the highest proportion of overseas investment in 2018 were electronic component manufacturing, finance and insurance, chemical material manufacturing, wholesale and retail, and real estate.

If foreigners plan to invest in Taiwan, they can first understand the following information to reduce the difficulties encountered when setting up a company.

1. Company Type
   
   Before setting up a company, a foreigner should first decide on the type of company which intends to set up. They include limited company, limited company by shares, branch and representative office. Generally speaking, foreign individuals will choose to set up a limited company, and foreign companies will choose to set up a branch in Taiwan.
   
   
2. Capital
   
   Taiwan's company law has no restrictions on the minimum capital amount. The capital amount set by the company should take into account the operating expenses that the company has no income at the beginning and the company needs to pay after its establishment, such as maintenance costs for accounting and tax reporting, office rental costs, office equipment costs, and purchase costs. The company can set the capital amount to be enough to cover the expenses for about half a year after the company is established, which is about NT$500,000. If the amount of capital invested by the investor is too low, it may be necessary to increase capital in the short term, which will cause additional costs.
   
   Regardless of the establishment of a company or branch in Taiwan, the actual amount of capital must be invested. Before the company is formally established, the investor needs to complete the investment of the capital amount and obtain a capital verification report from Taiwan CPA to complete the registration.
   
   
3. Company Name Reservation
   
   The name of a Taiwan company can only be used after a pre-check application. Therefore, after the investor decides the company name, we could assist in the name pre-check. Investors can provide 2 to 5 company names for inquiry. The main purpose of the name pre-check is to ensure that the name does not duplicate with those registered. Before going through the pre-check of the company name, the investor must provide the business projects in Taiwan to facilitate the application.
   
   
4. Identity of Investor
   
   Taiwan has no restrictions on the nationality of directors or shareholders. However, when the shareholder or director is from China, the company establishment procedure must be handled in accordance with the procedures for the establishment of a company by mainland investment. If the shareholders or directors set up a company with foreign investment, but the passport shows that the place of birth is in mainland China, when applying for investment in the company, it is necessary to provide the original certificate of resignation issued by the local Ministry of Public Security verified by the mainland notary office.
   
   
5. Business Plan
   
   If a foreign investor intends to invest and set up a company in Taiwan, it is necessary to provide the Taiwan company's business plan and the investor's resume for review. The business plan should detail the business items, business plan, estimated revenue, and number of employees employed in Taiwan of the company to be established in Taiwan. If the investor is a natural person, the investor's passport, all academic backgrounds, and all work experience should be provided. If the investor is a legal person, it is required to provide the company's establishment certificate, registration information, the company's shareholding structure, organizational chart, the company's annual revenue, the company's current status report, and the identity document of the company's ultimate beneficiary.
   
   
6. Company Registered Address
   
   Taiwan's company law does not stipulate that companies must have a physical office in Taiwan, however, companies must have a registered address in Taiwan to receive letters from government units or banking units. If the investor does not have an actual operating address at the initial stage of establishment, he may consider short-term leasing of a virtual address from the business center. After the company has the actual operating address, the company may consider moving the registered address to the address of the actual office.
   
   
7. Corporate Bank Account Opening
   
   Since a company in Taiwan needs to go through the capital verification process before it is established, the investor needs to open an account in the bank preparatory office first. The preparatory office account is mainly for investors to remit the capital of the company. Since account opening requires geographical relations, the location for opening a bank account needs to be close to the registered address.
   
   After the company is officially established, the person in charge of the company needs to go to the bank in person to convert the preparatory account into a formal account. At the same time, the person in charge of the company also needs to go to the IRS in the place where the company is registered to go through the opening procedures. After completing these two procedures, the company can start operations, such as issuing invoices, hiring employees, etc.

See also:
Taiwan Company Limited by Shares Registration Fees (For Foreign Company and Individual Apply for Registration of Taiwan Company  Limited by shares)
Taiwan Company and Bank Account (For Company Registered in Places other than the Mainland China)
Taiwan Branch Registration Procedures and Fees (For Company Registered in Places other than the Mainland China)
Taiwan Representative Office Registration Procedures and Fees (For Companies Registered in Places other than Mainland China)