ENTREPRENEUR LENS

When starting a business in Taiwan, the primary business structures generally include sole proprietorships and partnerships, as well as various forms of companies, such as limited companies, companies limited by shares, close companies, and limited partnerships. Sole proprietorships and general partnerships generally involve unlimited liability, which exposes the owners to greater personal financial risk. However, they are relatively simple and cost-effective to establish. Companies, on the other hand, generally provide limited liability protection, helping business owners better manage their financial exposure. They are typically more suitable for businesses that plan to raise capital, bring in investors, or expand their operations. A limited company is generally suitable for entrepreneurs and smaller businesses in the early stages of development, while a company limited by shares is often better suited for businesses seeking external investment, capital raising, and future expansion.

Equity planning is an essential part of the startup process, aiming to clarify the rights and obligations among shareholders, allocate company value and risks, and establish incentive mechanisms. Planning includes equity structure design, shareholder agreement drafting, capital increase and fundraising strategies, equity incentive plan design, and the utilization of intellectual property rights, with the goal of attracting capital, enhancing company value, and driving growth.