FAQ

Starting and running a business: your questions, answered

From incorporation to bookkeeping and labor/health insurance, the questions we hear most, all in one place.

Responsible person

Who can be the responsible person of a company? Are there eligibility requirements?An adult who is not a civil servant and has none of the situations listed in Article 30 of the Company Act can generally serve; anyone receiving government subsidies should check first.
What if the company seal or the responsible person's seal is lost?Don't panic: file a seal change registration once. There is no government fee.
If I start a business while employed, will my employer find out through labor and health insurance that I am a responsible person?Your labor and health insurance can stay with your current employer, so that alone won't reveal it; but the responsible person's name is public, so it depends on your employer's rules.

Paid-in capital

How much paid-in capital should I set? Is there a minimum?There is no legal minimum, but in practice we recommend at least NT$100,000; too little invites scrutiny or a later capital increase.
What does the amount of capital affect?Mainly the ceiling on loans and subsidies; if you plan on either, consider NT$500,000 or NT$1 million or more.
How long must the capital stay in the bank? Can I withdraw it right away?You can get the balance certificate in as little as two days, but withdrawing everything right after verification risks a finding of false capital.
Must capital be verified by a CPA? Can a deposit balance certificate substitute?A "company" needs CPA verification regardless of the amount, and the balance certificate cannot replace it; a "business" with capital of NT$250,000 or less needs no proof of capital at all.
Can I set a high authorized capital and pay in the actual capital gradually?This approach suits companies limited by shares with many shareholders; for a small company, making authorized capital equal paid-in capital is simplest.

Banking

Which bank should I open the company account with?Pick one you find convenient and that is close to the company or your home; corporate and personal online banking may be different systems, so ask first.
What do I bring to open a preparatory account? What restrictions do banks commonly have?Bring two forms of ID for the responsible person, the personal seal and the name reservation approval; call the branch first, as requirements vary widely.
How can capital be deposited? Must each shareholder deposit separately?Cash at the counter or transfer both work; the key is that each shareholder deposits from their own account according to their contribution.
Can a company have accounts at more than one bank?Yes. Like an individual, a company can hold several bank accounts at once.
When can the preparatory account become a formal account? What do I bring?About 1–2 weeks after incorporation, once the tax bureau's letter arrives; bring the responsible person's ID, the registration documents, the company seals and the preparatory account passbook.

Registered address

If the company is registered at my home or a relative's home, do I need a lease?A "company" cannot use premises free of charge; we recommend a lease of NT$1,000 per month. Only a "business" using the owner's or a direct relative's property can go rent-free.
How is your registered address service priced? Which business items cannot use it?We offer a registered address in Taichung, including receipt and scanning of government correspondence; export-focused companies and certain regulated industries are not eligible.
When a company rents an address from an individual, how do I download proof of payment for rent withholding and supplementary NHI?Supplementary NHI goes through the NHI Administration's multi-certificate online insurance system; withholding goes through the Ministry of Finance eTax portal, both online with the business certificate.
What documents are needed to register at my own or a relative's home?A copy of the latest house tax bill is enough; the building ownership certificate or a Category 1 transcript is only needed to limit registration to a specific floor.
Other companies are already registered at the same address. What should I watch for?The law does not limit the number, but tax officers look at whether the space is reasonable; avoid registering an invoice-issuing company at a small-scale business's address.
If I register at my own home, how much will house tax and land value tax rise? How can I reduce it?A fully owner-occupied home is taxed at higher rates once a company is registered, but most startups can apply for "one-sixth business use", and pure online sellers may even keep full residential status.
How do I apply for "one-sixth business use" for house tax and land value tax?After incorporation, the property owner applies proactively at the local tax bureau; without applying, it may be assessed as fully business use.
Why do both the registered address and the responsible person's household address receive official letters? What should I know about correspondence?The registered address is the company's "place for service"; the household address receives copies to prevent identity fraud; the three addresses each have a purpose.
What are the rules for using your registered address?Bookkeeping clients only, minimum one year, includes receipt and scanning of government correspondence; send private parcels to your own address.
How do reservation and the lease term for your registered address work?Payment within two weeks of invoicing reserves the slot; the slot is held for six months after payment; the lease starts two days after confirmation.

Incorporation

Should I set up a "limited company" or a "company limited by shares"?1–3 founders with equal shares and no investors yet → limited company; many shareholders, unequal shares or existing investors → company limited by shares.
What is an "electronically served document"? Is there an original?Incorporation cases filed online receive electronic documents that carry the same force as paper originals; most banks can now verify them by scanning the barcode.
I sell online. How do I provide the URL to the tax bureau?Any online sales channel must be registered with the tax bureau along with the account, and the page must display the company name and tax ID.
How do I choose the company's English name? What should I know about import/export registration?English name = main body + entity suffix (e.g. Co., Ltd.); case and abbreviations do not make names distinct; only half-width letters are allowed.
Do you help engrave seals? Should the company seal and bank seal be separate?The incorporation package includes the company seals and invoice stamp; the same set can serve the city government, tax bureau and bank, but a separate bank seal is recommended.
How do I choose business items? Do they affect tax?Business items are for the city government, industry codes for the tax bureau; we suggest 10–30 items, with the main business and lower deemed-profit items first, plus ZZ99999.
The responsible person is abroad. Can incorporation start from outside Taiwan?Only the bank account opening requires the person in person; with a domestic shareholder, you can reserve the name and open the account under that shareholder and switch back when filing.
What is the "Company Act Article 22-1" filing? What happens if I don't file?Every March, report directors, supervisors and shareholders holding over 10% on the TDCC platform; also within 15 days of incorporation or changes. Penalties are heavy.
How do I get a "business registration certificate"?That certificate was abolished in 2009; the incorporation approval letter plus the company registration form (or business transcript) serves as proof of registration.
I'm not receiving your emails. What should I do?Check the spam folder and add service@hhtax.co to your contacts; then confirm the address is spelled correctly and the right people are listed.
What can the business certificate (工商憑證) do? How do I apply?The corporate version of the citizen digital certificate: e-invoice authorization, online labor/health insurance, bill lookups and tax applications all rely on it; we apply for it with incorporation.
After the business certificate arrives, what settings do you help with?Card activation, registration on the Ministry of Finance e-invoice platform with the input summary activated, and designating us as the labor/health insurance operator, all set up at once.

Bookkeeping

What do the incorporation and bookkeeping services include? Is everything covered?Incorporation covers registration end to end, government fees and seals; bookkeeping covers all periodic government filings. Registered address, import/export registration and insurance unit setup are extra.
After the annual return is filed, will the ledgers be sent back to me? What is in them?We keep them for about 2–3 years, then confirm your address and return them once no further accounting work is needed.
What is the difference between expanded-review filing and actual-basis filing? What happens in a tax audit?Under expanded review, ledgers are not submitted and tax is assessed on the industry profit standard; under actual basis, ledgers must be auditable. We evaluate each year which saves more.
The company is set up but has no income yet. Do I still need to file?Yes. Unless suspension is filed, VAT must be filed on schedule even with zero revenue; late filing incurs surcharges.
How are late documents or post-filing corrections charged?VAT by the 15th of odd months, withholding by end of January, corporate income tax by end of May; late submissions or post-filing corrections incur a supplementary fee.
A customer says they don't need an invoice. Can I charge 5% less and skip it?No. Any income must be invoiced, and the tax should already be in the price; missed invoices are back-taxed and fined when found.
I want to pause operations for a while. How much does filing for suspension save?During suspension there is no VAT filing, no labor/health insurance premiums and no new tax; but the registered address still needs to be rented.
Does the bookkeeping fee vary with annual revenue?Yes. Fees are tiered by annual revenue and filing method (expanded review / actual basis), settled at the annual return based on actual revenue.
What do I send you for the bimonthly VAT return?Original input invoices, sales invoices (no need to mail e-invoices), and other expense vouchers bearing the company name.
How and when do I deliver invoices and documents to you?By the 5th of each odd month; deliver in person to the Wuri office, or by post or courier using our prepaid envelope.
Where do I get the Form 401 and other tax filing files?After each filing we email the files to the company contact address: Form 401 around the 18th of odd months, corporate income tax in early June, withholding statements at the end of January.
What is VAT and how is it calculated?A 5% consumption tax collected on the government's behalf, filed every two months; tax payable = output tax − input tax − carried-forward credit.
How should I price products? Should I add tax on top?Add 6–8% to the pre-tax price: 5% is VAT and 1–3% is estimated corporate income tax, so paying tax never feels like it comes out of your own pocket.
What do I need to apply for a "fixed asset" VAT refund?When the period has a credit and you bought equipment, you can apply for a refund; pay in the company's name and prepare the invoice, proof of payment, contract and bank account cover.
Are there ways to reduce VAT?Price with 5% included, collect deductible input invoices diligently, use the input summary to avoid missed deductions, and file and pay on time.
The company will only really start trading some time after incorporation. Do I still file with no inputs or outputs?Yes. With no vouchers, file zeros everywhere; not filing means a NT$1,200 fine and a record.
What is corporate income tax?20% on the company's annual "income", not revenue; income can be calculated by audit or expanded review.
Can I switch corporate income tax filing methods (audit / expanded review) every year?Yes. Each year you can choose whichever method is better for that year, and we evaluate it for you.
What is a dividend distribution? Is it better to distribute or not?Distributed earnings become shareholders' dividend income; undistributed earnings incur an extra 5%. Distribution favors shareholders in the 5% bracket or below; not distributing favors those at 20% or above.

Labor & health insurance

What is the most cost-effective way to insure the responsible person?Health insurance is mandatory and must be through a full-time employer or your own company; labor insurance is optional, through a union, the company, or National Pension instead.
The 2026 minimum wage rises to NT$29,500. What does the company need to do?Employees at the old 28,590 bracket are adjusted automatically; those earning 28,801–29,500 can apply to lower their bracket; the responsible person's minimum NHI bracket becomes 42,000.
Must I enroll employees in labor and health insurance?Anyone you employ must be enrolled; under 12 hours a week may skip health insurance. Enroll on the first day; late enrollment means back payments.
What is an employee and what is a contractor? How do I tell them apart?Taking direction during working hours = employee, requiring labor/health insurance and salary reporting; only the result matters, not the process = contractor, paid via a service fee slip with no insurance.
The company has fewer than five employees. Can I skip labor insurance?Health insurance, employment insurance, occupational accident insurance and pension are mandatory; "core labor insurance" is optional under five employees, but most companies enroll fully anyway.
The responsible person has another full-time job, and a partner has quit to prepare the company. What insurance arrangement is most cost-effective?The responsible person stays with the full-time employer; the partner is cheapest through a union (40% government subsidy) but gets no pension or employment insurance.
What is the difference in benefits between company and union enrollment?Company enrollment adds "employment insurance"; responsible persons cannot claim employment insurance benefits either way.