Register a Company in India from Taiwan

Author: Manu Rao | Updated: March 2026

At a Glance

Why Taiwanese Investors Are Setting Up Companies in India

Taiwan-India bilateral trade reached a record USD 11.78 billion in FY 2024-25, a 16.5% increase over the previous year. From January to August 2025 alone, trade already crossed USD 8 billion, putting it on track to break the record again. The trajectory is unmistakable: this corridor doubled from approximately USD 5 billion in 2017.

Over 250 Taiwanese enterprises now operate in India, up from 106 in 2021 — more than triple the count in seven years. Collective Taiwanese investment stands at approximately USD 4.5 billion, per the Taipei Economic and Cultural Center (TECC) in India. The potential pipeline is far larger: India could attract USD 15 billion in Taiwanese investment across printed circuit boards (PCBs), electronic components, and electric vehicle (EV) infrastructure.

The semiconductor partnership defines the next chapter. In 2024, Tata Electronics and Taiwan's Powerchip Semiconductor Manufacturing Corp (PSMC) announced a Rs 91,000 crore (approximately USD 11 billion) joint venture to build India's first AI-enabled greenfield semiconductor fabrication facility in Dholera, Gujarat. PSMC provides technology licenses and engineering support. This aligns with India's National Semiconductor Mission, backed by a USD 10 billion government incentive program.

Foxconn leads the charge in electronics manufacturing. The company operates 12 facilities across India, with its Tamil Nadu iPhone assembly operations producing millions of units annually. Foxconn committed USD 1.54 billion in November 2023 and announced a USD 433 million joint venture with HCL Group for a display driver chip plant operational by 2027. In January 2025, Foxconn CEO Young Liu received India's Padma Bhushan — the third-highest civilian honor.

Tata Electronics acquired Wistron's iPhone assembly facility in Karnataka for USD 125 million in 2023 and secured a 60% stake in Pegatron Technology India in January 2025, approved by the Competition Commission. These acquisitions transferred Taiwanese manufacturing know-how into Indian hands while maintaining the Taiwan-India supply chain link.

FTA negotiations started in December 2021 and are actively ongoing, with Taiwanese officials publicly pushing for acceleration. A Bilateral Investment Agreement was signed in 2002 and upgraded in 2018 to cover indirect investments. An MoU on labour cooperation was signed in February 2024, potentially opening Taiwan's manufacturing sector to Indian workers.

No DTAA with India's Income Tax Act — But a Treaty Exists

This is the single most important fact Taiwanese investors must understand: India and Taiwan do not have formal diplomatic relations. There is no DTAA signed between sovereign governments. Instead, the tax treaty was signed on 12 July 2011 between the Taipei Economic and Cultural Center in New Delhi and the India-Taipei Association in Taipei — a unique quasi-diplomatic arrangement.

The treaty functions identically to a standard DTAA in practice. India's Income Tax Department lists it and applies its rates. But structurally, it was notified under Section 90 of the Income Tax Act, 1961, through a government notification rather than a formal intergovernmental agreement. This distinction matters for one reason: some Indian tax officers have historically questioned the treaty's applicability in assessment proceedings, though courts have consistently upheld it.

Key withholding rates under the treaty: dividends at 12.5%, interest at 10% (with exemptions for government entities and central banks), royalties at 10%, and fees for technical services at 10%. Capital gains on shares are generally taxable only in the alienator's home territory, with exceptions for immovable property and shares deriving over 50% value from immovable property in the other territory.

To claim treaty benefits, your Taiwanese entity must obtain a Tax Residency Certificate from Taiwan's National Taxation Bureau. Indian tax authorities may also require a Tax Residency Certificate (TRC) in the prescribed Form 10F format and proof of beneficial ownership.

There is no Limitation of Benefits (LOB) clause in the India-Taiwan treaty — unlike the India-Singapore or India-Mauritius DTAAs. This makes the treaty somewhat more flexible, though GAAR still applies to all cross-border structures from April 2017.

Choose Your Entity Type

Four main options exist for Taiwanese investors entering India.

Private Limited Company — the dominant choice among Taiwanese manufacturers. Foxconn, Wistron (now Tata Electronics), and Pegatron all operated through Indian private limited subsidiaries. Requires at least two directors (one must be an Indian resident who stayed in India for at least 182 days during the financial year under Section 149(3) of the Companies Act, 2013). Allows 100% FDI through automatic route in most sectors. This is the structure you want for manufacturing, electronics assembly, or any operational subsidiary.

Limited Liability Partnership (LLP) — lighter compliance burden, no mandatory audit below INR 40 lakh contribution or INR 25 crore turnover. The resident partner must have stayed in India for 182 days. FDI in LLPs is allowed only under the automatic route in sectors where 100% FDI is permitted. Less common for Taiwanese investors but suitable for consulting or trading operations.

Branch Office — approved by RBI under FEMA regulations. Can carry out the parent company's business activities in India. Profits are taxable in India. A reasonable option for companies wanting to test the Indian market before full incorporation.

Liaison Office — cannot earn income in India. Activities limited to market research, communication, and promotion. RBI approval needed. Permission granted for 3 years, renewable. Some Taiwanese companies start with a liaison office before scaling to a subsidiary.

FDI Route and Sector Rules

Taiwan is not a bordering country. Press Note 3 (2020), which requires government approval for investments from China, Bangladesh, Pakistan, Nepal, Myanmar, Bhutan, and Afghanistan, does not apply to Taiwanese investors directly.

However, here is a critical nuance: if the Taiwanese entity has beneficial ownership from any Press Note 3 country (particularly China), government approval becomes mandatory. Given the complex cross-strait business relationships between Taiwan and mainland China, this is worth verifying with counsel before filing.

Sectors allowing 100% FDI via automatic route include electronics manufacturing, IT and software, semiconductor fabrication, food processing, renewable energy, healthcare, and single-brand retail (up to 100%). These align precisely with the sectors where Taiwanese capital flows into India.

Government approval is required for defence (beyond 74%), print media, multi-brand retail, and broadcasting.

Under the Production Linked Incentive (PLI) scheme, Foxconn, Wistron, and Pegatron received over Rs 4,400 crore in incentives for meeting mobile phone manufacturing targets. New PLI schemes cover semiconductors, advanced chemistry cell batteries, and IT hardware — all sectors where Taiwanese investment is concentrated.

Step-by-Step Registration Process

Here is the actual process for a Taiwanese investor, step by step.

Document Checklist for Taiwanese Investors

For the foreign director or shareholder based in Taiwan:

• Passport (color scan, all pages) — ROC passport
• Address proof — utility bill or bank statement not older than 2 months
• Passport-size photograph
• Board resolution from Taiwanese parent company authorizing India investment (notarized and attested)
• Certificate of Incorporation of Taiwanese parent company (attested through ITA)
• Memorandum and Articles of the Taiwanese company (attested through ITA)
• Bank statement showing source of funds
• Tax Residency Certificate from Taiwan's National Taxation Bureau (if claiming DTAA benefits)

The attestation process through the India-Taipei Association in Taipei is the critical path. Budget 2-3 weeks for the full notarization-MOFA authentication-ITA attestation chain. Common mistakes: assuming apostille works for Taiwan (it does not), submitting documents without MOFA authentication (ITA will reject), and providing address proof older than 2 months.

DTAA Tax Rates: India-Taiwan

Here is what you actually pay under the India-Taiwan tax treaty (signed 12 July 2011 between TECC and ITA):

Surcharge and cess are not levied on top of treaty rates. To claim these rates, obtain a Tax Residency Certificate from Taiwan's National Taxation Bureau and file Form 10F with Indian tax authorities. Note that the India-Taiwan treaty does not contain an LOB clause, but GAAR provisions (effective April 2017) apply. Transfer pricing documentation is mandatory for related-party transactions between the Taiwanese parent and Indian subsidiary.

Realistic Timeline

Total: 7-10 weeks from start to operating status. Here is the honest breakdown.

• DSC + DIN: 1-3 days
• Name reservation: 1-4 days
• Document preparation + attestation through ITA in Taipei: 2-3 weeks (this is slower than apostille countries)
• SPICe+ filing to Certificate of Incorporation: 5-15 working days
• Bank account opening: 2-4 weeks (enhanced KYC for foreign-owned entities)
• GST registration (if needed): 1-3 weeks
• FC-GPR filing with RBI: within 30 days of share allotment

Competitors quote "7-15 days." That number excludes document attestation (the longest step), bank account setup, and the reality of coordinating between Taipei and India. We give you the real number.

Post-Registration Compliance

Once your Indian company is incorporated, the compliance calendar starts immediately.

• FC-GPR filing with RBI — within 30 days of share allotment to the foreign investor. Mandatory under FEMA. Penalties for non-compliance.
• Board meetings — 4 per year for a Private Limited company. First meeting within 30 days of incorporation.
• Annual General Meeting — by September 30 each year.
• AOC-4 filing — financial statements filed with MCA within 30 days of the AGM.
• MGT-7 annual return — filed within 60 days of the AGM.
• Statutory audit — mandatory every year regardless of turnover.
• Income tax return — due by October 31 for companies requiring transfer pricing audit (which virtually all Taiwanese subsidiary structures do given intercompany transactions).
• GST returns — monthly or quarterly if registered.
• Transfer pricing documentation — required for related-party transactions between Taiwanese parent and Indian subsidiary. Indian tax authorities scrutinize cross-border technology transfer fees and component pricing.

Bank Account Opening

Plan for 2-4 weeks after receiving your Certificate of Incorporation.

Foreign-owned companies face enhanced KYC requirements. You will need FATCA/CRS declarations and verification through an Authorized Dealer (AD) bank. The AD bank will scrutinize the source of initial capital and the parent company's credentials.

HDFC Bank, ICICI Bank, and Yes Bank have dedicated desks for foreign-invested companies and are generally more efficient than public sector banks. SBI works but tends to be slower.

For Taiwanese electronics manufacturers setting up in industrial parks or Special Economic Zones (SEZs), some banks have on-site branches or dedicated relationship managers familiar with foreign manufacturing operations.

Profit Repatriation

Getting money back to Taiwan involves several steps.

Dividends — the most common method. TDS at 12.5% under the treaty. Process: declare dividend, deduct TDS, issue Form 16A, obtain CA certificate (Form 15CB), file Form 15CA with the income tax portal, instruct the AD bank to remit.

Royalties and technical fees — 10% WHT under the treaty. Requires a proper intercompany agreement and arm's-length pricing documentation. Taiwanese companies frequently charge technology transfer fees and licensing royalties — ensure these are documented at arm's length to avoid transfer pricing adjustments.

Share buyback — taxed as additional income in the hands of the company. Can serve as an exit mechanism.

Taiwan does levy corporate income tax (20%) on incoming dividends from foreign subsidiaries, but provides a credit for taxes paid in India. The effective tax burden depends on your Taiwanese entity's overall tax position.

Exit Strategy

If your India operations need to wind down:

Strike-off under Section 248 of the Companies Act, 2013 — for dormant companies with no assets or liabilities. File STK-2 with MCA. Takes 3-6 months. Requires nil tax liabilities and closed bank accounts.

Voluntary liquidation under the Insolvency and Bankruptcy Code, 2016 — for active companies with operations. Requires a special resolution, appointment of a liquidator, and completion within 12 months (extendable). More complex but cleaner for companies with real operations, employees, and assets.

How Beacon Filing Helps

We handle the complete India entry process for Taiwanese investors. From initial structuring through ongoing compliance:

• FDI advisory — route selection, sector analysis, Press Note 3 beneficial ownership verification, RBI compliance, and FC-GPR filing
• Resident Director services — appointment of a qualified Indian resident director meeting the 182-day requirement under Section 149(3) of the Companies Act, 2013 (or the 120-day resident designated-partner test under the LLP Act 2008, as amended, where relevant)
• Company setup and incorporation — SPICe+ filing, DSC, DIN, name reservation, and Certificate of Incorporation
• Tax and DTAA advisory — treaty benefit structuring under the TECC-ITA framework, transfer pricing documentation, and annual corporate tax compliance
• Accounting and statutory audit — bookkeeping, financial statements, ROC filings, and GST returns

Related Country Guides

Setting up from a different country? These guides cover similar territory:

• Register a Company in India from China
• Register a Company in India from Japan
• Register a Company in India from South Korea
• Register a Company in India from Singapore
• Register a Company in India from Vietnam
• Register a Company in India from Hong Kong
• Register a Company in India from Thailand

Get in Touch

Setting up an Indian company from Taiwan? Talk to us. No commitment, no generic sales pitch. We will walk you through the structure, timeline, and costs specific to your situation.

WhatsApp: +91 874 501 3644 | Email: [email protected]