2025 Company Formation Process: Avoid These 5 Common Pitfalls to Ensure a Smooth Operation

In 2025, Taiwan's entrepreneurial environment will prosper in tandem with the rest of the world, and the process of establishing a company will become more convenient due to digitalization. Even so, there are still many details that require attention to successfully setting up a company and ensuring that it runs smoothly. This article will introduce the latest version of the company establishment process in 2025 and list five common pitfalls to help entrepreneurs avoid potential problems and enhance their competitiveness.

Essential for new startups: A comprehensive review of the process of establishing a company in 2025

In Taiwan, although the process of establishing a company is standardized, many startup teams encounter difficulties in the application process due to information gaps and regulatory updates. The following is an outline of the key points of the latest version of the company establishment process in 2025:

1. Pre-application planning and company type selection

The first steps in establishing a company are to clarify the business project, capital planning, and choose the appropriate company form. The following is a comparison of the mainstream company types in Taiwan:

Important reminder:

• The company type determines legal liability and operational flexibility. Do not just look at the registration cost.
• In 2025, the closed joint-stock company provides greater flexibility and is suitable for technical teams to start their own businesses.

Company name and pre-check procedures

Company name search is an important part of the formal process of establishing a company. By 2025, most of Taiwan’s company and business registration name query systems will have realized online search.

Notice:

• If the name pre-check fails, you will need to resubmit the entire case.
• The validity period of the approved company name is six months, and a new query is required after the expiration date.

Establishment registration matters

According to the new law, the establishment process will be greatly simplified starting from 2025, but strict requirements such as "articles of association", "qualifications of responsible persons", and "business premises address" will still be required. The steps to set up a company are as follows:

1. Proposed Charter:The terms must clearly regulate business policies, profit distribution, etc.
2. Payment of capital contribution:You can open special accounts in multiple banks.
3. Shareholders' meeting minutes or resolutions:The list of directors and supervisors must be clearly stated (for joint stock companies).
4. Prepare the documents:Including the ID card of the person in charge, establishment charter, residence certificate, etc.

Government online application and process acceleration

In recent years, the government has promoted the "Single Window for Entrepreneurship" and the "Online Establishment Platform", which has significantly shortened the time required to set up a company. The following are the core official platforms:

Special reminder:In 2025, we will strengthen the verification of the identity of the person in charge to prevent "shell companies" from breaking the law!

Obtain business registration, tax registration and bank account opening

After the company is approved for establishment, it must go through business registration and tax registration. The new system in 2025 requires that tax registration be established in the IRS system simultaneously, otherwise it will be deemed as illegal operation and will be subject to penalties. In addition, commercial banks have strengthened the real-name system and anti-money laundering reporting, and detailed documents and business instructions are required when applying for a bank account.

Welcome to 2025, entrepreneurs must know the subsequent compliance of setting up a company

Digital innovation and the global flow of capital make entrepreneurship in 2025 more challenging and more opportunity-filled. Although establishing a company is only the starting point for success, subsequent compliance, taxation, labor and intellectual property protection are the key to long-term operation. Starting a business requires rigorous planning and compliance operations, and can effectively reduce risks and move towards sustainable development. The News Center calls on entrepreneurs to carefully select entrepreneurial platforms and plan legal and compliant processes in advance.

If more assistance is needed, the government and various entrepreneurship counseling platforms, such asRegulations and wage increasesEntrepreneurship consultation centers in various places provide professional guidance.

*(Reported by the News Department)*