Taiwan’s dynamic economy and strategic position in the Asia-Pacific region have made it a growing hub for employment and staffing services. Businesses from around the globe are recognizing the value of establishing local entities to connect talent with opportunities. One specific legal structure gaining popularity is the Private Employment Services Institution (PESI). Whether you’re a local entrepreneur or a foreign investor aiming to provide recruitment, staffing, or manpower outsourcing services, incorporating a PESI in Taiwan offers a legitimate and scalable path to operate within the regulatory framework.
In this guide, we’ll walk you through the essential steps, legal requirements, and key considerations for setting up a Private Employment Services Institution in Taiwan.
What Is a Private Employment Services Institution in Taiwan?
A Private Employment Services Institution is a licensed company authorized by the Taiwanese government to engage in employment-related services. This includes permanent and temporary staffing, recruitment, headhunting, employment outsourcing, and labor dispatching (subject to licensing and compliance).
These institutions must adhere to Taiwan’s Employment Services Act and are regulated by the Ministry of Labor (MOL). Incorporating such a company requires specific approvals, licenses, and capital thresholds, particularly when dealing with foreign workers or cross-border labor services.
Types of Employment Services Allowed
Once licensed, a PESI in Taiwan can offer a broad range of services, including:
- Local and international talent recruitment
- Temporary staffing solutions
- Professional headhunting
- Employee outsourcing or contract management
- Workforce consultation and human resource planning
- Employment matchmaking platforms
It’s essential to note that if you plan to provide labor dispatch services (派遣), additional licensing and compliance obligations apply under the Labor Standards Act.
Who Can Incorporate a PESI in Taiwan?
Both Taiwanese nationals and foreign investors can set up a Private Employment Services Institution, provided they meet the legal requirements. Foreign individuals or entities must undergo an investment approval process before registration. Furthermore, if the founder intends to reside in Taiwan and manage operations, additional visa and work permit steps are necessary.
Incorporation is suitable for:
- Local entrepreneurs aiming to formalize HR services
- International recruitment firms expanding to Taiwan
- Employer of Record (EOR) providers managing local employment contracts
- HR consultancies offering hiring and staffing support for overseas clients
Step-by-Step Process to Set Up a Private Employment Services Institution in Taiwan
1. Choose Your Business Structure
Most PESIs are established as limited companies (有限公司) or companies limited by shares (股份有限公司). For small to medium-sized operations, a limited company structure is usually more practical and cost-effective.
2. Reserve the Company Name
Before registration, you must submit a proposed Chinese company name and business scope to the Ministry of Economic Affairs (MOEA) for pre-approval. Make sure your name does not conflict with existing registered companies and accurately reflects your services.
3. Define the Business Scope
The business scope must clearly include employment or human resource services. Common business codes for a Private Employment Services Institution include:
- IZ12010: Manpower Dispatched
- I701011: Employment Service
If your services will include labor dispatch (派遣服務), you must ensure this is clearly stated and that your company satisfies the additional licensing and compliance requirements related to labor laws and workforce protection standards.
4. Meet the Minimum Capital Requirement
For operating a PESI, Taiwan mandates a minimum paid-in capital of NTD 5 million (approximately USD 160,000), especially if you plan to engage in labor dispatch or cross-border recruitment. For general HR or placement services, a lower threshold may be accepted, but having sufficient capital demonstrates financial capacity and is often necessary for license approval.
5. Apply for Foreign Investment Approval (MOEAIC)
Foreign investors must first obtain approval from the Investment Commission, Ministry of Economic Affairs (MOEAIC) to remit operating capital into Taiwan.
- Submit the investment application to MOEAIC for review and approval.
- Open a preparatory bank account in the name of the proposed company.
- Remit the approved capital into the preparatory account from overseas.
6. Apply for Pre-Establishment Approval for Employment Services License
Submit an application to the Workforce Development Agency, Ministry of Labor to obtain pre-establishment approval for operating a Private Employment Services Institution. The review process typically takes around 1 month.
Required Documents:
- Application fee of NT$500 (paid via postal money order)
- Application Form (Form A-1)
- Company Registration Information Sheet (Form A-2)
- A copy of the “Company Name Pre-Approval Application Form” or “Application to Change Company Name or Business Scope”
- Company Articles of Incorporation, including:
◦ Shareholder list
◦ Copies of shareholder ID or passports - Business Plan (Form A-3)
- List of Service Charges and Pricing (Form A-4)
- Proof of Capital (either a Capital Verification Report or a copy of Company Registration Certificate)
7. Incorporate the Company
Submit company registration documents to the local competent authority for company registration based on the company’s registered address. (Taipei City Hall etc.) Required documents include:
- Articles of Incorporation
- Shareholder and director information
- Proof of capital verification (after capital remittance)
- Lease agreement (registered physical office address)
- ID or passports of directors/shareholders
Once approved, your company will be issued a Unified Business Number (UBN).
8. Provide Financial Guarantee
As part of the licensing requirements, you must submit a NT$3 million guarantee certificate through a local bank or credit cooperative. This financial guarantee ensures compliance with the Employment Services Act.
9. Apply for the Private Employment Services Institution License
After receiving pre-approval and completing incorporation, you may apply for the official operating license. The review process also takes about 1 month.
Required Documents:
- License issuance fee of NT$2,000 (paid via postal money order)
- Official Application Form (Form AA-1)
- Employee Roster (Form AA-2)
- Copies of certificates and ID of professional staff
- Copy of Company Registration Certificate
- Original and one copy of the NT$3 million Guarantee Certificate
- Documentary evidence of the pre-establishment office setup
- Copy of the Pre-Establishment Approval Letter from the Ministry of Labor
The license is valid for 3 years and must be renewed before expiration.
10. Register for Tax and Open Official Bank Account
After obtaining your license:
- Register for Value-Added Tax (VAT) with the National Taxation Bureau
- Open the company’s official corporate bank account
- Ensure compliance with Taiwan’s accounting, bookkeeping, and tax filing systems
Compliance and Ongoing Responsibilities
Operating a licensed employment services institution in Taiwan means continuous compliance. Key responsibilities include:
- Submitting regular operational reports to the Ministry of Labor
- Renewing the PESI license before expiration
- Ensuring all service contracts and employee agreements follow Taiwan labor law
- Maintaining accurate records of placements and employment matches
- Avoiding prohibited activities such as collecting placement fees from job seekers (illegal in most cases)
Foreign employers must also stay updated on local labor law amendments, especially those affecting labor dispatch, outsourcing, and cross-border hiring.
Why Taiwan Is a Strategic Location for Staffing and HR Services
Taiwan offers a skilled and educated workforce, robust legal infrastructure, and growing demand for flexible employment solutions. As companies across industries adapt to digital transformation, the need for outsourced HR services, recruitment, and staffing is growing—particularly in sectors like:
- IT and software development
- Semiconductor and electronics
- Finance and fintech
- Healthcare and biotechnology
Taiwan’s transparent business environment and government support for entrepreneurship further enhance its attractiveness for HR service providers.
Final Thoughts
Incorporating a Private Employment Services Institution in Taiwan is a rewarding step for entrepreneurs and HR professionals looking to formalize and scale their operations. While the licensing process requires compliance with strict legal requirements, it ensures credibility and long-term sustainability in a competitive market.
Whether you plan to offer local staffing solutions, global recruitment, or serve as an Employer of Record, Taiwan’s legal framework allows you to establish a legitimate and professional presence in the labor services sector.
If you need help navigating incorporation, investment approvals, licensing, or compliance, consider partnering with a local advisor or corporate service provider who understands the local employment ecosystem.
