Operating a Business

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: - Latest available data.

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

The Active Population in Figures

Employed Persons, by Occupation (% of Total Labour Force)	2014
Manufacturing	27.1%
Wholesale and retail trade; repair of motor vehicles and motorcycles	16.5%
Construction	8.0%
Accommodation and food service activities	7.1%
Education	5.8%
Agriculture, forestry and fishing	4.9%
Transportation and storage	3.9%
Human health and social work activities	3.9%
Financial and insurance activities	3.8%
Public administration and defence; compulsory social security	3.4%
Professional, scientific and technical activities	3.2%
Administrative and support service activities	2.5%
Information and communication	2.2%
Real estate activities	0.9%
Arts, entertainment and recreation	0.9%
Water supply; sewerage, waste management and remediation activities	0.7%
Electricity, gas, steam and air conditioning supply	0.3%
Mining and quarrying	0.0%

For Further Statistics: National Statistics
Ministry of Labour

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.

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

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%
Labour Unions: Taiwan Confederation of Union Trade
Regulation Bodies: Ministry of Labour

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