Operating a Business

flag Taiwan, China Taiwan, China: Operating a Business

In this page: Legal Forms of Companies | The Active Population in Figures | Working Conditions | The Cost of Labour | Management of Human Resources

 

Legal Forms of Companies

Limited Company is a Private Limited Company.
Number of partners: At least one partner.
Capital (max/min): No minimum capital required.
Shareholders and liability: Liability is limited to the amount contributed.
Company Limited by shares is a Public Limited Company.
Number of partners: At least 2 shareholders, 3 directors and 1 supervisor.
Capital (max/min): No minimum capital required.
A minimum limit of TWD 5 million is required as start-up capital if the company wishes to employ foreign professionals to work in Taiwan in the first year.
Shareholders and liability: Liability is limited to the amount contributed.
Unlimited Company is a General partnership
Number of partners: Minimum 2 partners.
Capital (max/min): No minimum capital required.
Shareholders and liability: Liability is unlimited.
Limited partnership (SCS)
Number of partners: Minimum 2 partners. 2 types of partners: active partners and sleeping partners.
Capital (max/min): No minimum capital required.
Shareholders and liability: Liability is unlimited for active partners and limited for sleeping partners.
 

Business Setup Procedures

Setting Up a Company Taiwan, China
Procedures (number) n/a n/a
Time (days) n/a n/a

Source: The World Bank - Doing Business, Latest data available.

 
The Competent Organisation
MOEA.
For Further Information
Consult Doing Business Website, to know about procedures to start a Business in Taiwan.
 

Financial Information Directories

Dun & Bradstreet - Worldwide directory with financial information on businesses

 

Recovery Procedures

Principle
For information on bankruptcy procedures consult this link.
Bankruptcy Laws
Taiwan Bankruptcy Law
Reorganization and Rehabilitation Laws
Taiwan Company Act

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The Active Population in Figures

 
 
For Further Statistics
National Statistics
Ministry of Labour

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Working Conditions

Opening Hours
 
  • Legal Weekly Duration
48 hours per week or 8 hours per day.
  • Maximum Duration
12 hours per day, 84 hours per two weeks and no more than 46 overtime hours per month.
  • Night Hours
10 pm to 6 am.
Working Rest Day
For every seven days, an employee is entitled to at least one day of rest, as a regular day off for the employee.
Paid Annual Vacation
Work for 1~3 year could have 7 days paid annual vacations.
Work for 3~5 years could have 10 days paid annual vacations.
Work for 5~10 years could have 14 days paid annual vacations.
Over 10 years, could have 1 more day each year, maximum 30 days.
More information available on Invest in Taiwan (investment guide)
Retirement Age
65 years or work for 30 years.
Child Labour and Minimum Age For Employment
Minimum 15 years old.
Informal Labour Market
Quite important.

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The Cost of Labour

Pay

Minimum Wage
According to the Labor Ministry data, the minimum wage was set to TWD 25,250 per month in January 2022.
Average Wage
The ILO does not have data for Taïwan.
According to the latest figures from the Budget Directory General of Taïwan, the gross average monthly wage was TWD 55,440 in May 2022.
Other Forms of Pay
  • Pay For Overtime
Less than 2 hours: Regular wage (one hour) + 1/3 regular wage (one hour).
More than 2 hour: Regular wage (one hour) + 2/3 regular wage (one hour).
  • Pay For Rest Days Worked
Double regular wage (one day).
 

Social Security Costs

The Areas Covered
Only basic care. More information on the website of the National Health Insurance Administration and on Invest in Taiwan (investment guide).
Contributions
Contributions Paid By the Employer:
  • Labour Insurance Program: 10.5% on the employee's monthly insured salary up to TWD 45,800, with an additional 1% levied for unemployment insurance; of which the employer bears 70%
  • National Health Insurance Program: 4.69% of monthly insured salary, up to TWD 182,000, of which the employer bears 60% + a supplementary premium at the rate of 1.91% where the monthly pay exceeds the monthly insured salary range (capped at TWD 182,000)
  • Labour Pension Program: at least 6% of the employee's monthly insured salary up to TWD 150,000.

Contributions Paid By the Employee: •    Labour Insurance Program: 10.5% on the employee's monthly insured salary up to TWD 45,800, with an additional 1% levied for unemployment insurance; of which the employee bears 20%
•    National Health Insurance Program: 4.69% of monthly insured salary, up to TWD 182,000, of which the employee bears 30% + a supplementary premium at the rate of 1.91% where the monthly pay exceeds the monthly insured salary range (capped at TWD 182,000)
Competent Organization
National Health Insurance Administration

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Management of Human Resources

 

Recruitment

Method of Recruitment
Human Resource Agency, newspaper.
Recruitment Agencies
For a list of recruitment agencies consult this link.
Recruitment Websites
E-job
104 Human Resource Agency
 

The Contract

Type of Contract
It depends on the company. In general contracts offer little protection. The open ended contract does not exist. Full time employment is still the main type of labour contract in Taiwan, but companies increasingly hire independent contractors or temporary workers.

Breach of Contracts

  • Retirement
65 years or work for 30 years. Upon retirement, an employee may currently receive benefits from two sources. One is from the
company, if he or she works for a Labor Standards Law (LSL) covered company, which may provide up to 45 months of full salary for 30 years of service. The other source is the old age benefit of the Labor Insurance (LI), which provides up to 45 months of the LI insured salary.
  • Dismissals
Dismissal is possible at any time but some notice is necessary. Severance pay increases with seniority.
  • Other Possible Methods
Expiration of the contract, resignation, collective dismissal.
Labour Laws
Link to labor related legislation (in Chinese)
Information by Certified Public Accountant Limited
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.
 

Dispute Settlement

 

Conciliation Process

Cases of Dispute
The labor dispute cases are decreasing since 2003. The majority of these disputes were in the following areas: wages, labor contracts, occupational hazards, retirement, labor insurance, welfare benefits, and management. More information available on Invest in Taiwan (investment guide)
  • Legal Framework
Information available on HG and on Invest in Taiwan (investment guide)
  • Procedure
Taiwan's civil litigation system is based primarily on the provisions of the Code of Civil Procedure, which was enacted in 1930 and has been amended 12 times since then.
 

Judicial Structures

  • Legal Framework
The Code of Civil Procedure.
  • Competent Legal Body
District Courts.
 

Social Partners

Social Dialogue and Involvement of Social Partners
Unions have little power and strikes are rare.
Unionisation Rate
30%
Regulation Bodies
Ministry of Labour
 
 

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Latest Update: February 2025