Taiwan – Self-Employment

How does self-employment work for expats in Taiwan?

Foreign nationals are entitled to be self-employed or operate businesses in Taiwan, but this right is contingent on holding the correct legal status. Anyone wishing to carry out work within Taiwan must possess a valid work permit. Conducting work without one — including informal freelancing while on a tourist entry or under visa-exempt status — is against the law and may lead to deportation and future entry bans.

The primary legal framework governing foreign professionals is the Act for the Recruitment and Employment of Foreign Professionals, administered by the National Development Council (NDC) in conjunction with relevant ministries. Its purpose is to strengthen the recruitment of overseas talent, streamline the application process for work and residence permits, and expand both the pathways and incentives for long-term stays in Taiwan. The Act was amended in 2021 and again in 2024 to further refine how talent is attracted to the country.

Within this framework, certain categories of occupations and visa holders allow foreign nationals to apply directly to the Ministry of Labor for a work permit without needing a sponsoring employer. Alternatively, foreign nationals may apply directly to the Ministry of the Interior for an Employment Gold Card, through which the Ministry of Labor jointly assesses work qualifications. Upon approval, the holder is free to independently carry out professional work. This is the route most commonly taken by expat freelancers and independent professionals.

Self-employment in Taiwan broadly refers to working on your own account rather than under a formal employment contract. In practice, this covers sole traders operating under their own name, freelancers delivering services to multiple clients, and company directors who are also the working owners of their own entity. Each category carries distinct registration requirements, tax treatment, and visa implications — all of which are covered in the sections that follow.

What are the different self-employment and business structures available in Taiwan?

Taiwan provides a range of legal structures for self-employed individuals and business founders. The structure you choose has meaningful consequences for liability, tax treatment, and your ability to secure a work permit. The principal options are as follows:

• Sole Proprietorship (獨資) — A business registered under the owner’s personal name, comparable to the sole trader model used in many other jurisdictions. The owner bears unlimited personal liability for all business debts. While straightforward to establish, this structure is generally accessible to foreign nationals only if they hold permanent residency or are otherwise exempt from the standard work permit framework.
• General Partnership (合夥) — An arrangement in which two or more individuals share ownership and carry unlimited personal liability. Like the sole proprietorship, this structure is difficult for most foreign nationals to access without permanent residency. This step is only relevant if you intend to make investments in Taiwan as a sole proprietorship or as a general partnership with one or more co-owners.
• Limited Liability Company (有限公司 — LLC) — The most widely used business entity in Taiwan. An LLC requires at least one shareholder and one director, with shareholders’ liability confined to their capital contribution. LLCs are typically employed by small and medium-sized enterprises and represent the structure most frequently chosen by foreign founders.
• Company Limited by Shares (股份有限公司) — A larger corporate form better suited to businesses seeking external investment or contemplating a stock exchange listing. It requires at least three directors and a supervisory board, making it administratively more demanding than an LLC.
• Branch Office — An extension of a foreign parent company rather than a standalone legal entity. The principal distinctions between a branch office and a subsidiary relate to independence and liability. Regulatory requirements also vary based on the nationality of the investor.
• Representative Office — A non-revenue-generating option for foreign companies wishing to explore the Taiwanese market or coordinate regional activities. A representative office may conduct functions such as market research but cannot issue invoices or earn income. It is best suited to preliminary market investigation only.

For most foreign nationals starting out in Taiwan, the Limited Liability Company is the recommended route. Foreigners are able to incorporate an LLC in Taiwan, which is the most common business vehicle for international investors. This structure permits 100% foreign ownership across the majority of industries, offering entrepreneurs both flexibility and control. Critically, owning and directing a registered LLC is one of the clearest pathways to obtaining a work permit as a self-employed individual.

How do you register as self-employed in Taiwan?

Registering a business in Taiwan involves several government bodies, principally the Ministry of Economic Affairs (MOEA) and its subordinate Department of Commerce. Much of the process can be completed through the MOEA One-Stop Portal, which allows applicants to handle most steps online. The process typically covers name reservation, foreign investment approval where applicable, and submission of incorporation documents. The steps below relate primarily to the LLC structure, which is the most practical option for self-employed expat business owners.

1. Confirm your visa and work authorisation status. Before proceeding with registration, verify that your current residency or visa category permits you to engage in self-employed commercial activity. If you hold an Employment Gold Card or Entrepreneur Visa, you are already authorised to proceed. If not, you may need to apply for the relevant permit concurrently with, or ahead of, your business registration.
2. Reserve a company name. Submit your proposed business name to the Ministry of Economic Affairs (MOEA) for review and approval. The approved name remains valid for six months. Your Taiwan company name must be registered in traditional Chinese, though you may additionally register a Latin-script name for international purposes.
3. Apply for foreign investment approval. Foreign investors are required to obtain approval from the Investment Commission under the Ministry of Economic Affairs before proceeding. This step applies to all non-Taiwanese nationals investing in a new entity. The Investment Commission (MOEAIC) can be found at moeaic.gov.tw.
4. Open a preparatory bank account and deposit your capital. You will need to open a preparatory bank account in Taiwan under your reserved company name to receive the full amount of your registered capital, which must be remitted from an overseas account. You or a local representative holding a notarised power of attorney will need to attend a local bank branch in person with the required documentation.
5. Complete capital verification with a certified public accountant (CPA). Once the capital has been deposited and converted into New Taiwan Dollars, the bank will issue an inward remittance certificate. This document is required for the capital verification process, which must be conducted by a licensed CPA. This step formally establishes that the declared capital is in place.
6. Submit incorporation documents to the MOEA. Submit all required documentation to the Ministry of Economic Affairs to complete your company’s official registration. Required materials typically include articles of incorporation, shareholder agreements, proof of business address, and bank account details.
7. Register for a Unified Business Number (UBN) and tax. All businesses must obtain a Unified Business Number (UBN) in order to fulfil their tax obligations. Registration is administered through the National Taxation Bureau; visit ntbt.gov.tw to locate the relevant regional office.
8. Register for labour and health insurance if you employ staff. As a business owner with employees, you will be obligated to make contributions to both Labour Insurance and National Health Insurance on their behalf.

The entire process generally takes between four and eight weeks, though timelines depend on the completeness of your documentation and whether your business sector requires additional approvals. Always verify current fees and processing times directly with the MOEA at moea.gov.tw, as these are subject to change.

How do you set up a company in Taiwan as an expat?

Taiwan generally places no restrictions on foreign ownership; however, foreign nationals wishing to establish a business must complete the necessary registrations and submissions, and obtain any sector-specific post-incorporation licences required for the industry in which their company will operate. This is a notable advantage compared with many other Asian markets that require local co-ownership.

A foreign individual or corporate entity may hold 100% of a Taiwan company. Approval from the Investment Commission is required before company registration is submitted. There is no requirement for a locally resident shareholder or director. The entire board of directors of a foreign-funded LLC may consist of foreign individuals or foreign corporate entities.

Regarding minimum capital: no regulation prescribes a minimum capital amount for a foreigner establishing a company in Taiwan. That said, prevailing local practice suggests that initial capital should be sufficient to cover the company’s early operating costs. As a practical guide, an initial capital amount of at least NTD 200,000 is commonly recommended (as of 2025; verify current guidance with the MOEA). All registered capital must be denominated in New Taiwan Dollars.

A physical registered address in Taiwan is a mandatory requirement. Maintaining a locally registered office address is compulsory for company registration purposes. Virtual office services in Taipei and other major cities can satisfy this requirement at relatively modest cost, making it a convenient option for founders who are not yet permanently based in Taiwan.

For larger companies, it is worth noting that Taiwanese companies with paid-in capital of at least NTD 30 million are required to undergo statutory audits (as of 2024; confirm current thresholds with the MOEA). Companies below this threshold follow standard accounting practices without a mandatory audit requirement.

Taiwanese banks operate under stringent anti-money laundering and Know Your Customer (KYC) procedures, meaning corporate bank account opening can take anywhere from a few days to several weeks depending on the bank’s internal processes and your company’s profile. This is frequently identified as one of the most time-consuming elements of the entire setup process.

One regulatory distinction worth noting: if the investor is not from mainland China, establishing a branch of a foreign company in Taiwan does not require approval from the Investment Commission. Where the foreign investment involves a Chinese investor, however, prior approval is mandatory. This distinction reflects Taiwan’s additional scrutiny of investments involving Chinese capital on national security and regulatory grounds.

Can you work as a digital nomad in Taiwan?

Taiwan now offers a formal Digital Nomad Visa (數位遊牧停留簽證). Introduced in January 2025, this visa allows foreign nationals from visa-exempt countries to remain in Taiwan for up to six months, positioning Taiwan as one of the more recent yet increasingly well-organised destinations for location-independent workers in Asia.

The principal eligibility requirements for the Digital Nomad Visa as of 2025 are:

• Nationality: The visa is restricted to nationals of visa-exempt countries (67 as of 2025). The current list can be found at the Bureau of Consular Affairs (BOCA).
• Income: Applicants aged 30 or above must demonstrate earnings of at least USD 40,000 per year in at least one of the previous two years. Applicants aged between 20 and 29 must show earnings of at least USD 20,000 per year in at least one of the previous two years.
• Bank balance: Applicants must maintain an average monthly account balance of at least USD 10,000 or the equivalent in another currency.
• Health insurance: Evidence of international health insurance providing coverage for the entire duration of the stay in Taiwan is required.

It is important to understand that the Digital Nomad Visa does not confer entitlement to Taiwan’s National Health Insurance, labour insurance, pension contributions, or a Taiwan work permit. It is specifically intended for those who work remotely for overseas employers or clients — not for individuals wishing to register a local business or engage Taiwanese clients directly.

For those seeking a longer-term and more comprehensive arrangement, the Employment Gold Card offers considerably more flexibility. A foreign specialist professional intending to carry out professional work in Taiwan may apply directly to the National Immigration Agency for a four-in-one Employment Gold Card combining a work permit, resident visa, Alien Resident Certificate, and re-entry permit valid for one to three years. The Gold Card facilitates job-seeking, employment, career changes, self-employment, and freelance work.

A distinct Entrepreneur Visa is available for those looking to establish or invest in a business. Qualifying routes include holding an established enterprise with a minimum NTD 1 million (approx. USD 32,900) investment in Taiwan, or having secured investment or funding of at least NTD 2 million through a government-approved startup fundraising platform. Successful applicants receive an Entrepreneur Visa with a two-year validity period.

The Entrepreneur Visa may be extended for a maximum of two additional years provided that the business has generated at least NTD 3 million in sales revenue, employs at least three Taiwanese employees on a full-time basis, or can otherwise demonstrate a positive contribution to Taiwan’s economic development. Always verify the most current thresholds and requirements with the National Immigration Agency and BOCA, as these figures are subject to revision.

What taxes and social contributions apply to self-employed expats and business owners in Taiwan?

Taiwan’s tax framework applies to both individuals and companies based on residency status and the source of income. Developing a clear understanding of your obligations before you begin trading is essential, as the rules differ considerably depending on how much time you spend in Taiwan each calendar year.

Tax residency threshold: Taiwan determines tax residency on the basis of physical presence — spending more than 183 days in a tax year generally qualifies you as a tax resident. Tax residents are liable to income tax on their worldwide income, while non-residents are typically subject to tax only on Taiwan-sourced income at a flat withholding rate. Those who spend fewer than 90 days in Taiwan may be subject to an 18% withholding tax on Taiwan-sourced income.

Personal income tax: Taiwan operates a progressive personal income tax system for residents, with rates ranging from 5% to 40% according to income level. Self-employed individuals and sole traders are taxed at these personal rates on their net business income. Current rates and thresholds are available from the National Taxation Bureau of Taiwan at ntbt.gov.tw.

Corporate income tax: Companies are subject to a flat corporate income tax rate of 20% (as of 2025), broadly in line with corporate tax rates across many developed economies. Taiwan also levies a surtax on undistributed retained earnings, which is an important planning consideration for company owners who choose to retain profits within the company rather than distributing them.

VAT (Value Added Tax): Taiwan’s VAT system operates at a standard rate of 5%, notably lower than the equivalent rates in most European countries. Businesses must register for VAT once their turnover exceeds the applicable threshold — confirm the current threshold with the Ministry of Finance at mof.gov.tw. VAT is invoiced using Taiwan’s government-issued uniform invoices (統一發票), a distinctive feature of the Taiwanese tax system that demands careful compliance.

Social insurance contributions: Unlike salaried employment, where contributions are deducted automatically by an employer, self-employed individuals and company directors in Taiwan must enrol in the relevant schemes themselves. Employment Gold Card holders who are employed in Taiwan, or who are operating as employers or self-employed entrepreneurs, can bypass the standard six-month waiting period and enrol directly in Taiwan’s National Health Insurance system. Labour insurance and pension contributions also apply once you are operating as a registered employer.

Tax incentives for Gold Card holders: The Gold Card visa carries significant tax advantages — including a 50% income tax deduction for the first five years on annual salaries exceeding NT$3 million (as of 2025; verify current thresholds with the Ministry of Finance). This makes Taiwan especially attractive for high-earning specialist professionals.

Double taxation agreements: Countries that have tax treaties with Taiwan may benefit from reduced withholding tax rates and other protections. Taiwan has entered into double taxation agreements with a number of countries; the current list is published by the Ministry of Finance at mof.gov.tw. It is worth establishing whether your home country has an active treaty with Taiwan before drawing conclusions about how your income will be treated.

Are there any incentives, grants, or programmes to encourage expat entrepreneurs in Taiwan?

Taiwan has made substantial investment in programmes aimed at drawing in foreign talent and business founders. The following schemes are the most pertinent for self-employed expats and company owners.

The Employment Gold Card is arguably the centrepiece of Taiwan’s talent attraction strategy. The platform through which it is accessed provides applications for an Employment Gold Card, Employment Pass Card, and Entrepreneur Visa and Alien Resident Certificate, consolidating all the permits you may require to work in Taiwan — including a work permit, resident visa, alien resident certificate, and re-entry permit — in a single convenient location. The Gold Card is particularly valuable because it removes the need to secure a sponsoring employer, making it the ideal pathway for independent professionals. Applications are submitted via the Foreign Professionals Online Application Platform.

The Entrepreneur Visa provides a dedicated route for foreign nationals who wish to establish or invest in a business in Taiwan. Taiwan offers a Resident Visa for Entrepreneurs designed for individuals who intend to relocate to Taiwan in order to start a new venture or invest in an existing one. As outlined above, qualifying routes include demonstrating a minimum NTD 1 million investment in an established enterprise, securing funding through a government-approved platform, or achieving recognition in international competitions (as of 2025; check current criteria at immigration.gov.tw).

Tax incentives for R&D investment: Investors in Taiwan can benefit from income tax credits applied to qualifying research and development expenditure. This is particularly relevant for technology startups and companies operating in STEM sectors, which feature prominently in Taiwan’s national development priorities.

Export Processing Zones and Free Trade Zones: Foreign nationals can register an export-oriented company within a special economic zone (SEZ). This typically requires the submission of a business plan and a substantial capital investment — usually at least USD 200,000. This route is generally best suited to businesses that already anticipate significant investment and plan to export more than 75% of their output.

The Act for the Recruitment and Employment of Foreign Professionals provides the overarching legislative foundation that underpins many of these initiatives. The NDC has been consistently active in revising the Act to strengthen talent recruitment further. The most recent revision was passed in 2024, with implementation currently underway. Full details are available at foreigntalentact.ndc.gov.tw.

National Development Council (NDC) support: The NDC functions as Taiwan’s central investment promotion body and offers resources, guidance, and direct advisory services to foreign entrepreneurs. Their website at ndc.gov.tw is an excellent starting point for researching available schemes and eligibility requirements.

What are the practical challenges of being self-employed or running a business in Taiwan?

Language barriers in official processes: The vast majority of official procedures are conducted in Mandarin, which frequently leads to errors in forms or misunderstandings about what is required. While English is commonly used in Taiwan’s business community, government forms, tax filings, and legal documentation are primarily in traditional Chinese. Engaging a bilingual accountant or legal adviser from the outset is strongly advisable.

The role of local accountants (CPAs): A licensed Certified Public Accountant (CPA) is not simply a good idea in Taiwan — their involvement is a legal requirement at key stages of the business formation process, including the capital verification step. The CPA’s role is analogous to that of a gestor in Spain or a registered tax agent in Australia: they serve as an official intermediary certifying compliance with financial regulations. Factor ongoing CPA retainer fees into your operating budget from the start.

Banking access for foreigners: Opening a corporate bank account is a critical but often complicated step in Taiwan, largely due to the rigorous due diligence procedures in place. Foreign-owned companies can face heightened scrutiny, and incomplete supporting documentation may cause significant delays. Having a local adviser with established contacts at particular bank branches can considerably accelerate this stage.

The uniform invoice system: Taiwan’s VAT framework relies on government-issued uniform invoices (統一發票) distributed by the tax authorities rather than generated independently by businesses. Self-employed individuals and companies must apply these correctly to all taxable transactions. Incorrect invoicing is among the most common compliance failures encountered by new expat business owners. Your accountant should establish this system as part of your initial registration.

Industry-specific licences: Businesses in regulated sectors also risk overlooking sector-specific licensing requirements, which can give rise to serious legal complications. Industries such as financial services, healthcare, food and beverage, education, and telecommunications carry additional licensing obligations. Thoroughly researching your particular sector’s requirements with the relevant ministry is essential before committing to a business structure.

Company name registration: The official language of Taiwan is Mandarin Chinese, and therefore all company names must be registered in traditional Chinese. Where a company anticipates conducting international transactions, an additional English-language name may be registered for the Taiwan company. This dual-naming process is a step that expat founders frequently overlook.

Seeking professional support: While the setup process involves a number of legal and administrative steps, working with experienced local consultants or legal advisers can make the experience considerably more manageable. Many expat business owners in Taiwan rely on a combination of a local CPA and a bilingual business consultant, particularly during the first year of operation. The cost of this support is generally modest in comparison with the risks associated with compliance errors.

Frequently asked questions

Can I be both employed and self-employed at the same time in Taiwan?

The answer depends on your visa and work permit type. Employment Gold Card holders benefit from a flexible open work permit that allows them to engage in multiple forms of professional activity simultaneously, encompassing both employment and self-employment. Those holding a standard employer-sponsored work permit are tied to that specific employer, and independently operating a separate business or side activity may require additional approval. Always review your specific permit conditions with the National Immigration Agency before taking any action.

How do I issue invoices to foreign clients from my Taiwan company?

Under Taiwan’s tax rules, invoices for services rendered to overseas clients are generally zero-rated for VAT purposes — meaning a 0% VAT rate applies. You must nonetheless use the correct uniform invoice format and report the transaction to the tax authorities. Your accountant should configure your invoicing arrangements correctly at the point of setup. Maintain thorough records of all foreign-source income, as these will be needed for your annual tax return.

What happens to my business registration if my visa changes or expires?

Your company registration with the MOEA is legally separate from your visa status, but the two are closely linked in practice. If your work authorisation lapses, you are no longer legally entitled to operate your business. Should your residency status change — for instance, moving from an Entrepreneur Visa to an Employment Gold Card — you should notify the relevant authorities and update your company’s registration details accordingly. Renewing your visa or residency permit before it expires is essential to avoid any interruption in your legal status.

Do I need a local partner or Taiwanese shareholder to set up a company?

No, a locally resident shareholder is not required to incorporate a foreign-funded Limited Liability Company (LLC) in Taiwan. A foreign-funded LLC may be entirely owned by foreign individuals or foreign corporate entities without any need for a resident shareholder. However, if you wish the company’s foreign representative director to apply for a work permit sponsored by that company, the foreign ownership stake must exceed one-third of the total share capital.

Is the Taiwan Digital Nomad Visa suitable for someone running an online business?

The Digital Nomad Visa does not carry a Taiwan work permit, which means holders cannot legally provide services to Taiwanese clients or employers under this category. It is designed specifically for remote workers whose work is performed exclusively for overseas employers or clients. Anyone wishing to serve clients in Taiwan or formally establish a local business will need to pursue a different visa category — such as the Entrepreneur Visa or Employment Gold Card.

How long does it take to open a bank account for my Taiwan company?

Taiwan’s banks operate under stringent AML and KYC requirements, meaning that the account opening process can take anywhere from a few days to several weeks depending on the institution’s internal procedures and your company’s profile. Foreign-owned companies tend to face more intensive scrutiny than domestically owned businesses. Enlisting the assistance of a local CPA or business consultant with established relationships at specific bank branches can substantially reduce the time involved.

Are there tax obligations in Taiwan even if all my clients are abroad?

If you qualify as a Taiwan tax resident — that is, if you spend more than 183 days per year in the country — your worldwide income is in principle subject to Taiwan income tax, regardless of where your clients are located. That said, Taiwan has concluded double taxation agreements with a number of countries, and foreign tax credits may be available to prevent the same income from being taxed twice. The Ministry of Finance maintains the current list of treaty partners at mof.gov.tw. Professional tax advice is strongly recommended if your income is drawn from multiple countries.

Do I need a physical office address to register my business in Taiwan?

A locally registered office address is a compulsory element of company registration in Taiwan. This need not be a dedicated workspace that you use on a daily basis — many expat business owners use virtual office providers in Taipei or other major cities to fulfil this requirement at low cost. Ensure that your chosen provider is recognised by the MOEA as an acceptable registered address, as certain co-working or virtual address services may not meet the official criteria.