How to set up a one-person company? 5 steps to avoid pitfalls in 2025

[New Startup Focus Report] As the innovation and entrepreneurship boom continues to ferment in 2025, more and more professionals, SOHO workers and Internet workers choose to challenge market opportunities in the form of one-person companies. According to statistics from the Department of Commerce, as many as 57% of the newly established companies in Taiwan are one-person companies, indicating that "individual entrepreneurship" has become the mainstream of the market. However, "how to set up a one-person company" still daunts many new entrepreneurs. The following news team analyzes the latest 5 steps for setting up a one-person company in 2025, combined with professional checklists and fee tables to help you avoid pitfalls and start your business with more peace of mind!

1. Key points to know before setting up a one-person company

1. Determine when to set up a one-person company

As long as you meet the following conditions, you can consider setting up a one-person company:

• If the monthly operating income exceeds 200,000 yuan, an invoice is required (according to current tax laws).
• If you plan to undertake large-scale projects or cross-border cooperation, you may need to enhance your company's professional image.
• Need to diversify personal financial and career risks.

Remember: If your revenue is between 80,000 and 200,000, you can choose to register a business name. If your revenue is more than 200,000, it is strongly recommended to set up a one-person company.

2. Choose the right company type: Limited Company vs. Company

Warm reminder: If you are mainly focusing on personal branding, online marketing, knowledge services, etc., it is recommended to directly set up a one-person limited company, which is safer.

3. Plan the company name, industry, and business address

• Company name suggestions precede Department of CommerceThe website conducts a "company name pre-check" to avoid duplication and unavailability.
• Industry code options: "ZZ99999 In addition to permitted business, the company may engage in business that is not prohibited or restricted by laws and regulations" is the most common and most flexible option.
• The business address must be legal: you can "register for a borrowed address" at your own home, commercial office or business center. In 2025, there will be more choices for new start-up spaces, with flexible fees. The choice should be based on cost saving, legality and compliance.

II. Five steps to set up a one-person company in 2025

Overview of the 5 steps

Note: If you entrust an agent to handle the matter, the total fee will be approximately RMB 8,000 to 15,000, which will save time and effort.

1. Conduct preliminary investigation on company name and business

First go toDepartment of Commerce, Ministry of Economic Affairs"Preliminary check of company name and industry on the official website. "How to set up a one-person company" First of all, you must ensure that the name is unique and the industry code is appropriate. It is usually recommended to list 2-3 different names in advance for reference. The preliminary examination fee is 150 yuan, and the results will be available in 2-3 working days.

2. Determine the business address of your company

In 2025, the government will encourage small businesses to register at their own homes, but they must pay attention to land regulations and possible adjustments to property taxes and land value taxes. The easiest way is to "register at a borrowed address" (business center, virtual office), the cost of which ranges from approximately 2,000 to 3,500 yuan per year, and often includes mail receiving and sending, listing and accounting services.

3. Practical issues that cannot be ignored after the establishment of a one-person company

1. Tax declaration and account management

Business tax (5%) is declared every two months, and income tax is declared every May. It is recommended to outsource to a bookkeeper/accountant at a cost of NT$2,000 to NT$3,000 per month to ensure compliance and avoid underreporting or fines.

2. Labor health insurance/employer self-insurance measures

It is not mandatory for a one-person company to purchase labor insurance, but the boss must join the health insurance program as a company and pay the highest level of insurance premiums. Do not neglect this.

3. Document preservation and reporting obligations

After the company is established, it must report the information of the responsible persons and major shareholders to the competent authority platform within 15 days. In addition, "company establishment documents" such as articles of association, approval letters, tax registration certificates, etc. must be properly preserved in case of future changes and financial operations.

Common oversights include forgetting to file annual tax returns and failing to update business items in a timely manner, which lead to fines and deferrals.

4. 2025 Entrepreneurship Tips and Important Trends

1. The one-dollar capital theory is not advisable

Although the law allows capital as low as 1 yuan, in practice it is recommended to have a capital of more than 100,000 yuan in order to build trust, facilitate banking transactions, and be suitable for subsequent employees and investors to join.

2. Adopt a simplified digital process

The government will continue to optimize the "One-Stop Application for Companies" platform in 2025, and most steps can be applied online. It is recommended to make more use of official digital resources to reduce tedious manual work.

3. Seek professional assistance to reduce the pitfalls of entrepreneurship

When starting a business, you can consider entrusting a professional agent and an accountant to focus on developing the main business and avoid regulatory and tax concerns.

5. Overview of startup costs and estimated timeline for one-person company

By setting these budget thresholds, the financial pressure in the early stages of entrepreneurship can be effectively reduced.

6. One-person company vs. affiliate marketing: Application of emerging business strategies

In 2025, the digital economy is highly mature, and more and more "one-person companies" choose to form alliances with powerful alliance marketing platforms to expand side businesses, traffic and revenue sources.AffiMarket Easy AllianceBecoming one of the most popular choices in the industry:

AffiMarket Easy Alliance Introduction

AffiMarket is the preferred alliance platform that connects Taiwan with international promotion resources. The platform covers multiple fields such as travel accommodation, shopping e-commerce, AI and digital technology. Whether you create your own brand, run your own media, or are a Youtuber or IG creator, as long as you join the Easy Alliance, you can get free marketing instruction and professional training, earn commissions by promoting partner businesses, and create a stable personal income. It even provides diverse resources and support for the initial operation of a one-person company, making entrepreneurship more diverse and flexible.

Conclusion

How to set up a one-person company is actually the first step in innovation and entrepreneurship. Following the latest establishment standards and operating procedures in 2025 and keeping in mind the above 5 steps can not only avoid common pitfalls, but also reduce risks and costs. Most importantly, by combining trends such as business networks, digital management and alliance marketing, a one-person company will have a solid operating foundation from the beginning, allowing it to move forward in both personal professional development and further expansion of social media traffic and overseas markets. There is no shortcut to starting a business, but with the right methods, professional information and action, you can be one step closer to success!