Can I shut down my Taiwan company after getting my ID?
No โ not safely. Investment immigration requires the company to operate continuously for at least three years, and you must submit CPA-audited financial statements to the Investment Commission every year. Shutting down early gives the authorities grounds to revoke your settlement approval, since the residence right was granted on the condition of genuine investment and operation.
The three-year rule
The clock starts when the company is established and begins operating โ not when your residence permit is issued. During these three years you must:
| Requirement | Detail |
|---|---|
| Continuous operation | At least 3 years of real business from establishment |
| Annual audited statements | CPA-audited financial reports plus employee headcount, submitted by end of June each year |
| Local employment | At least 2 Taiwan-national employees each year (you may hire yourself in addition) |
| Insurance compliance | Labor/health insurance enrollment records, CPA-certified |
Why early closure is dangerous
Your settlement (ๅฎๅฑ ) approval is conditional on the investment plan the Investment Commission approved. If you close the company before the three years are up โ or let it go dormant โ the Commission can determine that the investment conditions were not fulfilled and move to revoke the settlement permit. Getting the ID card does not erase the conditions attached to how you got it.
What counts as "shutting down"
This includes formal liquidation, but also de facto closure: zero revenue, dismissed staff, cancelled office lease, no invoices. The annual review looks at substance, so a company that exists on paper only is treated the same as a closed one.
If you genuinely want to exit
Finish the three years first, keep filing the audited statements on time, and only then wind down in an orderly way. If the business is struggling, consider restructuring (changing business lines is allowed) rather than closing โ talk to your CPA before making any move that affects the headcount or revenue.
A cautionary pattern
The cases that end badly follow a familiar script: year one looks fine, year two the office shrinks to a registered address, year three the CPA can't sign because there are no real books โ and then the settlement application lands on a reviewer's desk with three years of thinning substance. Reviewers see this pattern constantly. If the business is genuinely struggling, documented restructuring (new business lines, honest filings showing the dip) reads far better than quiet hollowing-out.
Frequently asked questions
Does the three years start from company registration or from when I arrive?
From when the company is established and starts operating, per the Investment Commission's Q&A.
What if my business loses money โ does that violate the requirement?
Not necessarily. The requirement is genuine operation, not profitability. Honest losses with real activity, real staff, and proper filings are far safer than fake profits or no activity.
Can I change the company's business scope during the three years?
Generally yes, as long as it remains a genuine operating business with the required employees and filings. Major changes should be discussed with your CPA and, if needed, reported.
Sources
- https://www.midland.com.hk/zh-hk/property-news/uncategorized/%E3%80%90%E7%A7%BB%E6%B0%91%E5%8F%B0%E7%81%A3%E3%80%91%E5%8F%B0%E7%81%A3%E6%8A%95%E8%B3%87%E7%A7%BB%E6%B0%91%E6%96%B0%E6%94%BF%E7%AD%96-%E4%B8%AF%E5%8F%AF%E4%B8%AF%E7%9F%A5%E7%9A%84%E5%B9%BE%E4%BB%B6/
- Taiwan Investment Commission Q&A (tcbc.com.tw) โ 3-year operation from establishment; annual CPA-audited statements and insurance records due by end of June; 2 Taiwan-national employees required