A complete guide to Malaysians opening a company and obtaining permanent residency in Taiwan

A complete guide to Malaysians opening a company and obtaining permanent residency in Taiwan

Preface: Why choose to start a business in Taiwan?

For many Malaysians, Taiwan is not only a country with a similar culture and convenient living conditions, but also offers an excellent environment for entrepreneurship and development. The Taiwanese government provides a clear regulatory path for foreigners to obtain permanent residency through starting a business. This guide will explain the entire process in a simple and understandable manner.

Basic procedures for Malaysians to open a company in Taiwan

The following is an overview of the complete process for Malaysians to set up a company and obtain residency in Taiwan:

1. Key preparations before starting a company

1. Investment application and review

Who needs to apply?

• All Malaysians who do not have a Taiwan ID card, including those who hold various residence permits (work, family dependents, permanent residence permits)
• Malaysian students attending universities in Taiwan can also apply, but the review process may take longer.

Review focus:

• Investor's educational background
• Legality of the source of funds
• The integrity and feasibility of the investment plan

Required documents:

• Personal ID (passport)
• Proof of academic qualifications and experience
• Proof of financial resources (bank passbook, monthly financial statement)
• Detailed investment plan

2. Company type selection

Malaysians can choose to set up the following business types in Taiwan:

3. Capital planning

Notes on fund remittance:

• The capital must be remitted from abroad in foreign currency (mostly US dollars) and cannot be directly converted into Taiwan dollars abroad.
• The money must be remitted to the company's preparatory office account in the investor's personal name and cannot be remitted by relatives or friends.
• If using NT$ deposits in Taiwan as capital, complete proof of source of funds is required

2. Key Steps after Company Establishment

1. Apply for a foreign manager work permit

Application requirements:

• The company's capital is NT$500,000 or more
• Foreign investment accounts for more than one-third of the shares
• Can apply for a foreign manager

Work permit features:

• Approval period: 1-3 years (determined by the Ministry of Labor)
• Can be self-employed (investors themselves act as managers) or externally hired
• Renewal conditions: The company has been established for more than one year, and the average turnover in the most recent year or the previous three years is more than 3 million yuan

2. Apply for a residence permit

Characteristics of applying for a residence permit:

• The residence period is the same as the work permit approval period
• Spouse and minor children can reside with relatives
• During the period of family-based residence, the spouse cannot work (unless certain conditions are met), and minor children can apply for schooling

III. Path to Permanent Residency

1. Basic conditions

According to Taiwan's Immigration Act, foreigners applying for permanent residence must meet the following conditions:

• Continuously reside in Taiwan for 5 years , with more than 183 days per year
• Hold a valid residence permit
• No criminal record
• Have enough property or skills to be self-reliant

2. Advantages of permanent residence

3. Other ways to obtain permanent residence

In addition to obtaining a 5-year residency by starting a business and working, Malaysians may also consider:

Investment Immigration Program:

• Investing in a profitable business of NT$15 million or more and creating 5 or more jobs for 3 years
• Investing in central government bonds with a face value of NT$30 million or more for three years

Entrepreneur Visa:

• Suitable for innovative entrepreneurs, the first year is valid for 2 years and can be extended
• No need to establish a company in advance to apply

4. Taxation and Financial Planning

1. Main tax burdens of companies

2. Personal income tax

• Residency for 183 days or more: 5%-40% progressive tax rate applies (same as Taiwanese citizens)
• Residence less than 183 days: flat rate 21%

5. Common Problems and Precautions

1. Business item restrictions

Foreign investment is not permitted in all industries in Taiwan. Some businesses are protected and prohibited from foreign investment. When applying for a preliminary review of your company name, you must avoid the prohibited and restricted items listed in the "Negative List of Overseas Investment."

2. Company address requirements

The company must have a legal business address for registration. If a physical office is not required, you can consider renting a virtual office (borrowed address registration) in a business center.

3. Number of visits by the responsible person to Taiwan

If the company's principal does not reside in Taiwan, he or she must visit Taiwan at least twice during the establishment process:

• First time: opening a company preparation office account
• Second time: Go to the IRS to sign and receive the purchase certificate

Conclusion

There is a clear and feasible path for Malaysians to establish a company and obtain permanent residency in Taiwan. The entire process takes approximately 2-4 months to set up, plus a 5-year residency period. It is important to comply with regulations, prepare all necessary documentation, and ensure the company is operating smoothly.

Taiwan is very friendly to foreign entrepreneurs. As long as they follow the prescribed steps, Malaysian friends can not only realize their entrepreneurial dreams in Taiwan, but also eventually obtain long-term residence rights and live and work in peace and contentment on this land.

If you have any questions during the process, it is recommended that you consult a professional accountant or law firm. They can provide more personalized guidance and assistance to make your entrepreneurship and residency journey smoother.