Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.
Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Taiwan. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.
This information was collected from World Bank: Doing Business
| No. | Procedure | Time to Complete | Associated Costs |
|---|---|---|---|
| 1 | Use the online application (http://onestop.nat.gov.tw) to search the name, apply for incorporation and tax registration, apply for Labor Insurance, National Health Insurance and Pension Plan Report with the Bureau of Labor Insurance and register for work | 7 days | NTD 150 (online search) or NTD 300 (governement fee) + 0.025% of capital (in case the registration fee payable is less than NTD 1,000, the registration fee shall be NTD 1,000) |
| 2 | Make a company seal | 1 day | NTD 450 (depending on the number/ material used, each range from NTD 450 to NTD 1000) |
| 3 | submit a CPA audit report showing that the amount of capital invested is sufficient to cover company establishment cost | 2 days | NTD 5,000 - 20,000, fee varies across firms |