{"id":9030,"date":"2023-04-20T03:32:12","date_gmt":"2023-04-20T03:32:12","guid":{"rendered":"https:\/\/www.hanse.group\/knowledge\/entrepreneurship-process-qa\/"},"modified":"2025-06-25T11:16:36","modified_gmt":"2025-06-25T11:16:36","slug":"entrepreneurship-process-qa","status":"publish","type":"knowledge","link":"https:\/\/www.hanse.group\/en\/knowledge\/entrepreneurship-process-qa\/","title":{"rendered":"Starting a Business: Step-by-Step Guide and FAQs\uff5cHanse Helps You Take the First Step!"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.hanse.group\/en\/knowledge\/entrepreneurship-process-qa\/#What_should_first-time_entrepreneurs_be_aware_of\" >What should first-time entrepreneurs be aware of?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.hanse.group\/en\/knowledge\/entrepreneurship-process-qa\/#Should_I_register_a_company_or_a_sole_proprietorship_for_my_first_business\" >Should I register a company or a sole proprietorship for my first business?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.hanse.group\/en\/knowledge\/entrepreneurship-process-qa\/#A_common_question_for_all_entrepreneurs_what_are_the_pros_and_cons_of_registering_a_company_versus_a_sole_proprietorship\" >A common question for all entrepreneurs: what are the pros and cons of registering a company versus a sole proprietorship?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.hanse.group\/en\/knowledge\/entrepreneurship-process-qa\/#Benefits_of_registering_a_company_or_a_sole_proprietorship\" >Benefits of registering a company or a sole proprietorship:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.hanse.group\/en\/knowledge\/entrepreneurship-process-qa\/#Company_Establishment_Prerequisites_and_Basic_Procedures\" >Company Establishment Prerequisites and Basic Procedures<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_should_first-time_entrepreneurs_be_aware_of\"><\/span><b>What should first-time entrepreneurs be aware of?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Essential preparations and key steps for starting a company: aside from choosing a good name, the first and foremost task is to determine whether to set up a company or a sole proprietorship, depending on future plans. You must also designate a responsible person for the company\u2014someone with full legal capacity. Note: government employees are not allowed to have side businesses.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">This article clearly explains the differences between a company and a sole proprietorship, the steps involved in company registration, and answers to common questions. After reading it, you\u2019ll be better equipped to move forward with your entrepreneurial journey.<\/span><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"size-full wp-image-5485 aligncenter\" src=\"https:\/\/www.hanse.group\/wp-content\/uploads\/\u516c\u53f8\u8a2d\u7acb\u6b65\u9a5f\uff5c\u5275\u696d\u6d41\u7a0b\uff5c\u548c\u4ed5\u96c6\u5718.png\" alt=\"\u516c\u53f8\u8a2d\u7acb\u6b65\u9a5f\uff5c\u5275\u696d\u6d41\u7a0b\uff5c\u548c\u4ed5\u96c6\u5718\" width=\"488\" height=\"736\" \/><\/p>\n<h2><\/h2>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Should_I_register_a_company_or_a_sole_proprietorship_for_my_first_business\"><\/span><b>Should I register a company or a sole proprietorship for my first business?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"A_common_question_for_all_entrepreneurs_what_are_the_pros_and_cons_of_registering_a_company_versus_a_sole_proprietorship\"><\/span><span style=\"font-weight: 400;\">A common question for all entrepreneurs: what are the pros and cons of registering a company versus a sole proprietorship?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Which is more suitable or cost-effective: a company or a sole proprietorship?<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Whether you set up a company or a sole proprietorship, both will have a uniform business number (UBN) and can issue invoices and provide labor and health insurance for employees.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">A company name typically ends with \u201cLtd.,\u201d while sole proprietorships include types such as \u201centerprises\u201d or \u201cstudios.\u201d<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">You must decide upfront whether to register a company or a sole proprietorship, as they cannot be converted into each other later.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Company names must be unique nationwide, while sole proprietorships must be unique within a city or county.<\/span><\/p>\n<h2><\/h2>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Benefits_of_registering_a_company_or_a_sole_proprietorship\"><\/span><b>Benefits of registering a company or a sole proprietorship:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>Company (Ltd.)<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No capital requirement (except for specific industries).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Certain industries can only be operated under a company (e.g., residential property management).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Invoices: 5% VAT (bi-monthly reporting).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For government tenders or larger contracts, company status is often required.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you aim for national expansion or need product labeling, a company is recommended.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u201cLimited\u201d implies limited liability: liability is restricted to the amount of capital invested.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Responsible persons and shareholders can be changed.<\/span><\/li>\n<\/ul>\n<p><b>Sole Proprietorship<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">No capital requirement (except for specific industries).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Capital under NT$250,000 does not need to be certified.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Suitable for small, local businesses.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sole proprietorships can change to partnerships (not vice versa).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Receipts: 1% (quarterly tax bill); Invoices: 5% VAT (bi-monthly reporting).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Only sole proprietorships can apply for exemption from using uniform invoices.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Company_Establishment_Prerequisites_and_Basic_Procedures\"><\/span><b>Company Establishment Prerequisites and Basic Procedures<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">One-Stop Online Application for Company or Business Registration<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">The process of applying to register a company or business can be divided into five main steps:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>\u201cPre-check for Company Name and Business Scope\u201d<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">You can apply through the Ministry of Economic Affairs\u2019 \u201cCompany, Business, and Limited Partnership One-Stop Online Application\u201d system, or through the local government offices. For example, after applying via Taipei City Government, it usually takes about 4 working days to obtain the \u201cCompany Name Pre-Approval Certificate.\u201d<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Before the pre-check, it\u2019s best to find a business address. If you don\u2019t have a suitable one or don\u2019t want to borrow a friend\u2019s address, many people now choose to register at a \u201cbusiness center\u201d because these are typically in prime locations and offer services like mail and parcel reception, making them a convenient option.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>\u201cStamp Engraving &amp; Opening a Preparatory Bank Account\u201d<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">You\u2019ll need to make company chops (large stamp) and a personal chop for the responsible person. You can choose the style and material yourself.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Bring the name approval certificate, ID documents, and the personal chop to the bank and inform them that you\u2019re opening a preparatory account. Once the account is opened, you can deposit the capital. For limited companies, it\u2019s recommended to consult with an accounting firm first about how to proceed.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>\u201cCPA Audit and Certification\u201d<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">After obtaining the deposit certificate from the bank, find a CPA for a capital verification report. (This step is not required for business registration.)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>\u201cApply for Company Registration\u201d<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Prepare the registration form, company charter, and other documents, and submit them to the Department of Economic Development or Commercial Division of the local government. You will receive the company\u2019s Unified Business Number, and then you can make the official invoice stamp.<\/span><\/li>\n<\/ol>\n<p><b>\u201cTax Registration\u201d<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Go to the National Taxation Bureau to apply for tax registration. Bring the previously submitted documents and the tax bureau\u2019s application form. If you need to issue invoices, apply for an invoice purchase certificate at this time.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Once the tax bureau sends the notice to the business address, the company representative needs to bring ID and stamps to the bureau in person. After signing, the entire setup process is completed!<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><b>Starting a One-Person Company \u2013 What to Expect?<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Entrepreneur FAQs<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><b>Q1: What are the costs involved in setting up a company?<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Costs include rent, utilities, renovation, HR, office equipment, inventory, marketing, etc. The largest expenses are typically rent and renovations. Business centers provide a professional setup and help reduce renovation costs.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><b>Q2: What if I don\u2019t have an address for registration?<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">It\u2019s recommended to use a \u201cbusiness center\u201d for virtual address services. They offer speed, convenience, and a prestigious address, plus all necessary documentation.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><b>Q3: How long does it take to set up a one-person company?<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">For non-special industries, it takes around 2 to 3 weeks, and usually no more than a month.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><b>Q4: Does the amount of capital affect taxation?<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Taxation is based on revenue and taxable income, not capital amount.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><b>Q5: How much capital should I set?<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">There\u2019s no longer a minimum capital requirement, but it&#8217;s generally advised not to go below NT$100,000. Increasing capital later incurs extra costs.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><b>Q6: How to choose a bank for account setup?<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Choose a bank close to your home or office, or one you\u2019re familiar with. Internet banking or checks must be applied for at the same bank, so proximity can save time.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><b>Q7: Is it mandatory to deposit capital proportionally?<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Proportional deposits are standard, but one party may transfer funds on behalf of others. The key is that the capital must go into an account under the shareholder\u2019s name.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><b>Q8: Can a foreign company set up a company in Taiwan?<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Yes, as long as the Investment Commission approves the application.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><b>Q9: How long must the capital stay in the account before it can be used?<\/b><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">It must remain for at least 2 days. Once you obtain the deposit certificate, the CPA will issue the capital verification report. After that, you can use the funds.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><b>Q10: If a company has no transactions right after setup, does it still need to file taxes?<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\">Yes. Whether or not there are transactions, filing is mandatory. Failure to do so results in a NT$1,200 fine and a record of the violation.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Essential preparations and key steps for starting a company: aside from choosing a good name, the first and foremost task is to determine whether to set up a company or a sole proprietorship, depending on future plans. You must also designate a responsible person for the company\u2014someone with full legal capacity. Note: government employees are not allowed to have side businesses.<\/p>\n","protected":false},"author":1,"featured_media":7799,"template":"","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"knowledge_category":[61],"class_list":["post-9030","knowledge","type-knowledge","status-publish","has-post-thumbnail","hentry","knowledge_category-knowledge-en"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Starting a Business: Step-by-Step Guide and FAQs\uff5cHanse Helps You Take the First Step!<\/title>\n<meta name=\"description\" content=\"Essential preparations and key steps for starting a company: aside from choosing a good name, the first and foremost task is to determine whether to set up a company or a sole proprietorship, depending on future plans. 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