Starting a business in Taipei requires careful planning, and one of the most crucial steps before company registration is the business location pre-check. While the Ministry of Economic Affairs provides standardized forms and documents for company registration across Taiwan, Taipei City imposes an additional requirement: a pre-approval of the business address to ensure compliance with zoning and building regulations.
Neglecting this step can lead to fines, denied registration, or forced relocation, making it essential for entrepreneurs to understand the process before signing any lease agreements.
National vs. Taipei City Requirements
Anyone can access the “National Commercial and Industrial Administration Portal” maintained by the Ministry of Economic Affairs to download standardized documents required for company registration or business registration.
However, Taipei City is unique. In addition to these national documents, applicants must submit a “Business Location Zoning and Building Regulation Inquiry Form” issued within the past six months. Only after confirming that the location does not violate urban planning or building management regulations will the Taipei City Government approve the company registration.
How to Check Your Business Address?
Entrepreneurs can apply for the pre-check online via the Taipei City Department of Commerce “Business Location Pre-Check” webpage. The service is free, and applicants typically receive a formal response within three days.
The pre-check result will indicate whether the location is compliant:
- Both Urban Planning (UP) and Building Management (BM) opinions must be marked “Compliant” for the address to be approved.
- The response will specify which business activities are allowed, e.g., the address may be approved for F501060 Restaurant Operations.
- Any additional notes in the review must be carefully observed. For example, the City may specify:
- Only the first floor can be used
- No occupation of the platform or basement areas
If either UP or BM marks “Non-Compliant”, the address cannot be used for the intended business. The same location might be suitable for a restaurant but illegal for a bar. To convert a non-compliant location to compliant, professional assistance from an architect is required—this typically adds costs to your setup.
Choosing the Right Business Use Type
When filling out the pre-check application, many applicants are confused by the “Restricted Use?” section. This field determines whether the business address is limited to office use. There are three main options:
1.Primary Business
- For businesses with physical stores such as retail shops, restaurants, cafes, or gyms
- Typically used for first-floor storefronts
2. Office-Only Use
- For locations without inventory or display, solely for employees to work
- Usually applies to offices on upper floors
3. Residential-Office Hybrid Use
- For home-based businesses, freelancers, e-commerce operators, or incubator tenants
- Office space must not exceed two-fifths of the total residence area
- Applicants must submit a declaration form confirming compliance
Note: Taipei City authorities do not randomly inspect private homes; enforcement generally occurs only after a report or complaint.
Tax and Legal Considerations for Home-Based Offices
Registering a company at a residential address increases property and land taxes. It is recommended to:
- Obtain the homeowner’s consent
- Evaluate the additional tax burden
- Consider implications for insurance and legal compliance
Legal Risks of Violating Usage Rules
Misrepresenting business use during the pre-check carries serious consequences. For example, if an address approved for a restaurant is used as a bar without proper authorization, Taipei City can impose fines ranging from NTD$60,000 to NTD$300,000, cut off utilities, and enforce other penalties until compliance is restored.
Recent news reports highlight multiple cases of repeated violations, emphasizing the importance of adherence.
Practical Advice for Entrepreneurs
- Pre-Check Before Signing a Lease
Always submit an address pre-check application and wait for approval before signing any rental contract. This ensures your business can legally operate at the chosen location. - Include Lease Clauses for Protection
Consider including a clause in the lease agreement stating:
If the address cannot be used for office, restaurant, warehouse, or other purposes, the contract becomes void, and the landlord agrees to return the full deposit. - Engage Professionals if Needed
When locations are non-compliant, hiring an architect or consultant early can save time and avoid costly penalties later.
Conclusion
The business location pre-check is a critical step for any entrepreneur planning to establish a company in Taipei. It ensures compliance with urban planning and building regulations, prevents fines and operational disruptions, and safeguards your investment.
By understanding the pre-check process, selecting the correct business use type, submitting accurate documentation, and waiting for formal approval, entrepreneurs can avoid common pitfalls and secure a legally compliant business address—laying a strong foundation for long-term success in Taipei.