[2026 Guide] How Hong Kong Residents Can Start a Business in Taiwan: Capital, Procedures & Investment Residency
Planning to relocate or expand your business to Taiwan? This comprehensive guide breaks down the latest 2026 regulations, capital requirements, investment screening processes, and residency applications for Hong Kong entrepreneurs!
In recent years, a growing number of Hong Kong residents have chosen to start businesses, establish companies, and obtain residency status in Taiwan. However, navigating the review process by the Ministry of Economic Affairs (MOEA), completing company registration, and applying for subsequent investment residency often feels complex and overwhelming. This 2026 guide will walk you through all the essential steps and regulatory key points!
1. Business Setup Models and Qualifications for Hong Kong Residents
Hong Kong residents (holding a Hong Kong Special Administrative Region passport or permanent identity card, without foreign passports other than BNO, or those complying with the Regulations Governing Relations with Hong Kong and Macau) generally establish businesses in Taiwan through two primary pathways:
🏢 Overseas Chinese & Foreign Investment (Limited Company / Corp.)
Ideal for entrepreneurs planning long-term operations, applying for investment residency, and relocating their families. Requires prior investment approval from the Investment Commission, MOEA, before proceeding with company registration.
🏬 Local Sole Proprietorship / Partnership (If holding residency)
If you have already acquired Taiwan residency through family reunion or other legal avenues, you may consider a local business registration (firm). However, pure inbound investments from Hong Kong typically take the form of Limited Companies.
2. Capital Requirements and Remittance Practices
Capital is one of the core evaluation criteria. Based on current regulations and practical experience, Hong Kong entrepreneurs should note the following:
- Minimum Capital Limit: Although Taiwan’s general company registration has eliminated strict minimum capital requirements (adopting flexible Company Act provisions), applying for an investment residency permit requires demonstrating sufficient operational scale and economic contribution. It is generally recommended to set the capital at at least NTD 500,000 (or NTD 1,000,000+ if hiring local staff or scaling operations).
- Foreign Exchange Remittance: Investment funds must be legally remitted from Hong Kong (or offshore accounts) into Taiwan’s preparatory bank account, followed by foreign exchange validation and capital verification.
- Source of Funds Proof: Proper documentation verifying the legal origin of funds must be prepared to ensure compliance.
3. Step-by-Step Company Setup Process (5 Key Steps)
Name Reservation and Business Scope Application
Apply for company name reservation and business scope verification with the Commerce Development Agency, MOEA.
Apply for Overseas Chinese and Foreign Investment Approval
Submit the business plan, Hong Kong identity documents, and relevant authorization letters to the Investment Commission for approval.
Capital Remittance and CPA Capital Verification
Open a preparatory bank account, remit the capital from Hong Kong, and engage a Taiwan CPA to issue a capital audit report.
Company Registration and National Tax Bureau Tax Registration
Apply for company establishment registration with the local municipal government and complete tax registration to obtain a tax ID.
Apply for “Investment Residency Permit” via the National Immigration Agency
Once the company is officially established and operational substance is verified, apply for the HK/Macau Resident Entry/Exit Permit (Investment Residency).
4. Investment Residency and Permanent Settlement Conditions
What many Hong Kong friends care about most is: “How soon can I obtain residency and an ID card after starting a business?”
💡 Key Indicators for Residency & Settlement:
- Investment Residency Qualification: Meeting the investment amount threshold (generally recommended at NTD 500,000+ with actual operational evidence, leased office space, and local employees). Upon approval by the Investment Commission and Immigration Agency, a 1-to-3-year residency permit is issued.
- Residency to Settlement (Naturalization): Under current regulations, HK/Macau residents who lawfully and continuously reside in Taiwan for a specified period (e.g., legally residing for 1 year or continuously for 2 years with 270+ days of physical presence per year), while maintaining operational records and tax compliance, may apply for naturalization or permanent settlement to obtain a Taiwan ID card and passport.
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Contact Us on LINE Now5. Frequently Asked Questions (FAQ) & Expert Advice
Q1: Do Hong Kong residents need to visit Taiwan in person to start a business?
A: Most initial documents (such as name reservations, Investment Commission applications, and authorization letters) can be handled in Hong Kong through notarization or designated procedures. However, opening the preparatory bank account or completing specific identity verification usually requires a personal trip to Taiwan or legal authorization.
Q2: Does the entire capital need to be remitted all at once?
A: Yes. When applying for CPA capital verification, the full capital amount must be remitted from overseas into the preparatory account. Once verification is complete and company registration is finalized, the funds can be freely used for daily business operations (such as rent, salaries, and inventory).
Q3: Is a physical office address required?
A: Strongly recommended. When reviewing investment residency and operational substance, the Immigration Agency and Investment Commission may conduct on-site visits or require proof of business premises. Virtual or unverified addresses can lead to application delays or rejections.
