How to Hire Your First Employee in Taiwan: Subsidiary, Branch Office or EOR?

HuntByte Team 十月 15, 2026

How to Hire Your First Employee in Taiwan

If a foreign company wants to hire its first employee in Taiwan, there are three common routes: set up a Taiwan subsidiary, register a branch office, or hire through an EOR (Employer of Record). The right choice depends on where you are in your plans for the Taiwan market.

Many overseas companies see an opportunity in Taiwan, whether it is customers, technical talent or supply chain partners, and want to start with one salesperson, a Country Manager, an engineer or an operations hire. The role is usually clear. What holds things up is the question of who the employer is: who enrolls the employee in labor and health insurance, who runs payroll, who signs the employment contract, and whether the Taiwan team can act for the company locally.

So before asking "how do we recruit?", you need to answer "who will employ this person?" This guide compares a subsidiary, a branch office and an EOR, and explains the limits of using an EOR in Taiwan that are easy to miss. For the actual setup, tax and employment arrangements, check your specific situation with an accountant, lawyer or other qualified adviser.

Answer These 5 Questions Before You Compare the Options

Many companies start by asking which option is cheapest. But cost is an outcome. What really decides the choice is what you plan to do in Taiwan, and for how long. Think through these five questions first, and the comparison that follows will be much more useful.

What will this employee do in Taiwan?

Will they test the market, develop customers, provide technical support, coordinate suppliers, or build a local sales and operations team?

The role affects whether you will need to handle ongoing transactions in Taiwan, issue invoices, collect payments or set up local management processes. These needs narrow down your options and may also require company and tax registration.

How many people will you hire at first, and in a year?

One person testing the market, a team of three, and a long-term department of ten or more call for very different cost structures and management approaches. Think about where you want to be in a year, not only today.

When does the employee need to start?

If you want someone working soon, the time needed to prepare documents and set up a company may change your choice. If your market entry plans are still taking shape, you have time to evaluate the long-term structure first.

Will the Taiwan team handle transactions, payments or customer delivery?

This question separates "hiring someone to test the market" from "doing business in Taiwan". If the team will regularly handle local transactions, collect payments or issue invoices, check early with an accountant whether you need a local entity and the related registrations.

How much local administration and compliance is headquarters willing to take on?

Payroll, labor and health insurance, employment contracts, attendance and leave, expense claims and HR policies do not disappear just because you hire one person. They simply sit with different parties depending on the option you choose.

The Three Common Options at a Glance: Subsidiary, Branch Office and EOR

Here is a quick comparison across the points companies care about most. The actual setup process and timeline vary with the investor's background, the industry, how ready your documents are and your specific situation.

Taiwan subsidiary

Best for: Companies that have decided to operate in Taiwan for the long term
Legal status: A separate Taiwanese legal entity; the parent company's liability is generally limited to its capital contribution
Can it sign contracts and issue invoices: Yes, it is a full operating entity
Who employs your staff: The Taiwan subsidiary
What to prepare: Foreign investment approval, company registration, accounting and tax, HR and day-to-day administration

Taiwan branch office

Best for: Overseas headquarters expanding directly into Taiwan
Legal status: Not a separate legal entity; its rights and obligations are directly tied to the foreign head office
Can it sign contracts and issue invoices: Yes, it can carry out business activities
Who employs your staff: The foreign company's Taiwan branch
What to prepare: Branch registration, tax registration and local operating arrangements

EOR (Employer of Record)

Best for: Companies still evaluating the market, not yet ready to set up an entity, or planning a small initial team
Legal status: The EOR provider is the employer on the employment contract; your company sets goals and manages the day-to-day work
Can it replace a local entity: No. An EOR handles employment only. It cannot do business, collect payments or take on commercial transactions in Taiwan for you
Who employs your staff: The EOR provider
What to prepare: Check whether the service model could count as labor dispatch, and plan recruitment, management and a future transition

This comparison is a starting point. It does not mean any option is automatically cheaper or lower-risk.

Option 1: Set Up a Taiwan Subsidiary If You Plan to Stay for the Long Term

A subsidiary is the most complete local structure of the three, and also the one that takes the most preparation.

When do companies usually choose a subsidiary?

When they have decided Taiwan is a long-term market, expect to keep hiring, need to build a local brand and organization, or want the Taiwan team to work with customers, sign contracts and collect payments directly.

A subsidiary is a separate Taiwanese legal entity. For companies that want to keep Taiwan business risks separate from headquarters, or plan to build a full local organization, this is often an important factor.

Flexibility and setup effort

A subsidiary gives you a complete employer and operating structure. You control everything from employment contracts and benefits to signing local contracts.

In return, you need to arrange company registration, accounting and tax, HR policies and daily administration. You can build these in-house or work with local accounting, legal or HR service providers.

Example

A European equipment maker already has two customers in Taiwan and plans to build a sales and technical support team within a year. The team will also need to handle contracts and delivery directly with customers.

In this case, it makes sense to put a subsidiary at the top of the list. Even if the first employee starts under a different arrangement, planning for the subsidiary should begin at the same time.

Option 2: Register a Taiwan Branch Office If Headquarters Will Run the Business Directly

Both a branch office and a subsidiary can do business and hire staff in Taiwan. The main differences are who carries the liability and how the business is managed.

How is a branch different from a subsidiary?

A branch office is not a separate legal entity. Legally, it is directly tied to the foreign head office, which is generally responsible for the branch's rights and obligations.

The registration process, whether investment approval is needed and how long it takes all depend on the investor's background, the industry and how ready your documents are. Check with an accountant, lawyer or the relevant authorities before you decide, rather than choosing whichever process looks faster.

When might a branch office be the better fit?

When the Taiwan business will be managed directly by overseas headquarters, products and the business model are set centrally, and the company has already decided to operate in Taiwan for the long term.

The tax, liability and funding differences between a branch and a subsidiary can be complex. Ask an accountant to assess them based on where your headquarters is, your planned business model and your expected growth.

Don't overlook the representative office

A representative office suits early-stage work such as market research, gathering information and liaison. In principle, it cannot carry out business activities.

If the person you plan to hire will develop customers, bring in revenue or handle local commercial transactions, a representative office is usually not enough. Whether it can support the hiring and work you have in mind depends on what you actually plan to do.

Option 3: Use an EOR If You Want to Hire Before Setting Up an Entity

An EOR may be the fastest of the three options to start. But it should not be treated as a catch-all where you find the person first and then ask a third party to sign the contract. In Taiwan especially, you need to check the EOR's service model and your recruitment process first.

What is an EOR, and who is responsible for what?

An EOR (Employer of Record) is a service provider that acts as the employer on the employment contract. It handles the contract, payroll, labor and health insurance, and HR administration.

Your company still decides the role, sets the goals and manages the day-to-day work. Using an EOR does not mean outsourcing all responsibility. Management issues, role design and performance expectations still sit with you.

Why you need to check whether it could count as labor dispatch

EOR is a commercial service model, not a separate legal category under Taiwan's labor law. If the provider employs the worker while your company directs and manages their daily work, the arrangement may be treated as labor dispatch and must follow the related rules.

If the arrangement is labor dispatch, the contract between the dispatch provider and the worker should, in principle, be open-ended rather than fixed-term. The company receiving the worker also may not interview or name a specific candidate before the provider signs the employment contract.

In other words, if you have already interviewed and chosen a candidate, then ask an EOR to put them on its payroll, you may be at risk of what Taiwan's Labor Standards Act prohibits as transferring a pre-selected worker into dispatch. If the rules are breached and the worker has already started, they may be entitled to ask your company to employ them directly, and your company may face fines.

Whether an arrangement counts as dispatch depends on the contract, how the work is managed and the facts of each case. Confirm the process with the EOR provider and a labor law specialist before you start recruiting.

When is an EOR worth considering?

You are still testing the market and have not decided whether to set up long-term in Taiwan
You plan to start with a small market, business or technical team of one to a few people
Headquarters does not want to build a full HR and admin function in Taiwan yet
You want to plan your staffing before setting up an entity, and can confirm the compliance process before recruitment begins

What to confirm before using an EOR

Recruitment process: Who sources and interviews candidates, and whether the service model could raise dispatch or pre-selection issues
Cost breakdown: How much goes to service fees, salary, labor and health insurance, pension contributions and benefits
Management responsibilities: Who handles performance reviews, non-compete and confidentiality terms, and termination
Candidate communication: How you will explain who the legal employer is, how the work is arranged and your long-term plans for Taiwan
Future transition: How employees will move to your own entity later, and how their seniority and benefits will be handled

Which Option Fits? 4 Common Scenarios

No single option suits every company. Use these four scenarios as a starting point and find the one closest to your situation.

You plan one business development hire to test whether Taiwan is worth investing in: Consider an EOR first, but confirm the service model and interview process before recruiting starts. Also set a date to review whether to set up an entity.
You already have steady customers and revenue, and plan to build a local sales and technical team: Prioritize a subsidiary or a branch office.
The Taiwan team will represent the overseas parent and sell its existing products and services: Compare a branch and a subsidiary in more detail, especially on management, liability and tax.
You are not hiring yet and only want to start market contact and early preparation: Look into a representative office and similar options first, so you do not pick the wrong structure just to have a presence in Taiwan.

7 Hiring and Management Steps Foreign Companies Often Miss Before the First Hire

Choosing how to employ someone is only the first step. From our experience helping companies recruit, these are the areas where foreign companies most often get stuck when hiring in Taiwan for the first time.

Job title and responsibilities: The title used at headquarters may not match how Taiwan's talent market uses it. An "Account Manager" can mean very different work in different industries.
Salary and benefits: Taiwanese candidates usually compare offers on annual pay, including year-end and other bonuses. Looking only at monthly salary makes it easy to put together an offer that is not competitive.
Who does what in hiring: Agree upfront on who interviews, approves pay, handles onboarding and manages the person day to day. If you are considering an EOR, confirm the process before recruiting starts.
English and time zones: Separate what the job truly needs from a default requirement. Setting the English bar too high can screen out many strong candidates.
Brand awareness: If your company is not well known in Taiwan, explain the career opportunity, team size and how decisions are made. Otherwise candidates may not take the role seriously.
How candidates see an EOR: In Taiwan, "dispatch" work is often associated with less job security. If the EOR provider is the employer on the contract, explain your plans for Taiwan upfront, and whether the role may move to direct employment later.
The first hire's role: Is this person an executor, a market pioneer or your future local manager? The answer shapes the seniority, salary and authority you should offer.

Your first employee will almost always build headquarters' first real understanding of the Taiwan market. A clear job description, defined decision-making authority and a well-designed reporting line will do more for their success than an impressive title.

Moving From an EOR to Your Own Entity: Signs It Is Time to Reassess

An EOR works well as a starting point, but it is not always the right long-term setup. These signs suggest it is time to review your structure.

Your team keeps growing: With more people, the combined monthly service fees may approach the cost of running your own local entity and HR function.
You have steady revenue: You now have customer contracts or ongoing business activity in Taiwan, and need to confirm the most suitable entity.
You need a full HR framework: For example, local benefits, equity incentives or a management structure.
The team is more involved in transactions: They play a growing role in purchasing, contracts, payments or customer delivery.
Headquarters has committed to Taiwan: Taiwan is no longer a pilot market.

Plan early how employees will move from the EOR provider to your own company, including whether their seniority, annual leave and benefits carry over. Handled well, the move signals to your team that the company is here to stay.

FAQ: Hiring Employees in Taiwan as a Foreign Company

Q: Can a foreign company hire employees in Taiwan without setting up a company there?

A: In practice, companies usually either set up a local entity or hire through a provider such as an EOR. If you plan to handle ongoing transactions, collect payments or operate long-term in Taiwan, check whether you need a subsidiary or branch office, along with the related tax and registration requirements.

Q: What is the difference between a subsidiary, a branch office and a representative office?

A: A subsidiary is a separate legal entity. A branch office can do business, but it is directly tied to the foreign head office in terms of legal liability. A representative office generally cannot carry out business activities and is better suited to market research, information gathering and liaison.

Q: Are there Taiwan-specific limits on hiring through an EOR?

A: Yes. EOR is not a separate legal category under Taiwan's labor law. If an arrangement could count as labor dispatch, pay close attention to the contract type, who interviews candidates and how daily work is managed. Interviewing and choosing a candidate yourself, then asking a provider to employ them, can create a pre-selection risk.

Q: Do we still need to manage employees ourselves if we use an EOR?

A: Yes. The EOR handles the employment contract, payroll and insurance, but the work itself, the goals and day-to-day management remain your responsibility.

Q: Is an EOR suitable for the long term?

A: Not necessarily. Once your team grows, you have steady revenue, or headquarters commits to Taiwan long-term, reassess whether a local entity would serve you better.

Q: How should a foreign company write its first job posting in Taiwan?

A: Make sure the job title matches local market usage, and clearly state the responsibilities, annual salary range and English requirements. If your company is not well known in Taiwan, also explain the team size, decision-making authority and your long-term plans.

——————

Choose a Setup That Supports Your Next Stage, Then Start Hiring

A subsidiary, a branch office and an EOR each have their strengths. Start by clarifying your stage in the Taiwan market, how many people you expect to hire, what business you will do locally and how much you can manage, then decide on the structure.

When you are in a hurry to find your first employee, it is tempting to look only at which option is fastest. But the wrong starting point affects everything that follows, from reorganizing later to transferring staff and managing legal risk.

Planning your first hire in Taiwan? Start by outlining the role, how many people you expect to hire and when you need them to start. HuntByte can help you understand Taiwan's talent market, position the role and plan your recruitment.

Updated October 2026. This article is general information only. For company setup, investment, tax and employment arrangements, check your specific situation with an accountant, lawyer, EOR provider or the relevant authorities.

Related reading:

Blog