Types of companies in Taiwan: limited company, company limited by shares, and sole proprietorships explained

Taiwan’s Company Act recognises four company types — unlimited company, limited company, unlimited company with limited liability shareholders, and company limited by shares (including the closely-held variant). Sole proprietorships and partnerships register instead under the Business Registration Act and are not companies. In practice almost everything you will meet is a limited company or a company limited by shares.

The four types under the Company Act

Limited company (有限公司) — one or more shareholders with liability limited to their contribution, no board required; the most common SME form. Company limited by shares (股份有限公司) — capital divided into shares, can issue stock and raise funds, board required; used by larger companies. The closely-held variant added in 2015 caps shareholders at 50 and restricts share transfers. Unlimited and unlimited-with-limited-liability companies exist in the statute but are very rare.

Company vs sole proprietorship/partnership — the most common confusion

Sole proprietorships and partnerships register under the Business Registration Act. They are not legal persons, and the owner bears unlimited personal liability. Both have a Unified Business Number, but a business registration has no paid-in capital field in the GCIS registry — that is normal, not missing data. If a lookup shows no paid-in capital, first check whether it is a business registration rather than treating it as a red flag.

Two more forms you will encounter

Branch of a foreign company — no separate legal personality; liability sits with the parent. Limited partnership — created by the 2015 Limited Partnership Act, combining general partners (unlimited liability) with limited partners; common in venture capital and film projects.

Why this matters for due diligence

The form determines which signals are meaningful. For a company limited by shares, look at paid-in capital and board structure; for a limited company, paid-in capital and shareholder contributions; for a business registration there is no capital figure at all, so weigh the owner, business scope and years in operation instead. Using the wrong signal produces the wrong conclusion — for example reading a sole proprietorship’s absent capital figure as concealment.

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FAQ

Is a company more trustworthy than a sole proprietorship?

The form itself does not indicate trustworthiness. It changes the liability structure and what data exists: companies have paid-in capital on record, business registrations do not. Judge on years in operation, business scope and official penalty records instead.

Why does this company show no paid-in capital?

Most often because it is a sole proprietorship or partnership registered under the Business Registration Act, which has no such field. Confirm the form before drawing a conclusion.

Can a limited company convert to a company limited by shares?

Yes, through a change-of-organisation registration under the Company Act. The registry then shows the new form, and the Unified Business Number normally carries over.

Official sources:公司法(全國法規資料庫 law.moj.gov.tw)、商業登記法、有限合夥法、經濟部商工登記公示資料 data.gcis.nat.gov.tw
Public-data summary, not legal or investment advice. Updated:2026-08-29。