How to Set Up a Solo Studio

With the rise of remote freelancing and independent professions, more and more people are asking themselves, ‘Can I use my professional skills to create my own business?’.

Indeed, opening your own studio is a flexible and practical option. You can take on projects at your own pace, free from external constraints, while building business credibility through legal registration. It even allows you to issue invoices and file taxes, making your personal brand more professional and open to expansion.

So, if you’re wondering how to apply for and set up a personal studio, this article will explain what it entails, the set up process, and the benefits of operating one, helping you smoothly transition from freelancer to official entrepreneur. 

Moreover, in the early stages of entrepreneurship, you don’t necessarily need to bear high rental costs. Simply choosing a suitable virtual office or co-working space can enable you to complete registration quickly. At JustCo, we offer flexible working hours and virtual address solutions required for legal registration, helping you start from scratch and easily take your first step into entrepreneurship.

What is a One-Person Studio?

A one-person studio typically refers to a limited company established and independently operated by a single individual. This individual is solely responsible for the company.

In Taiwan, the Company Act permits natural persons to form limited companies alone without the need for partners or a board of directors, making it very friendly to freelancers and new entrepreneurs looking to start a business. 

Although small in scale, these companies can gain official corporate status, allowing them to issue invoices, participate in business activities, and enhance their credibility for taking on projects. All they need to do is to complete basic business registration, setup documentation, and tax procedures.

Compared to traditional proprietorships or partnerships, a one-person company is a legally independent entity, which helps to separate personal assets from business liabilities and risks. Additionally, it conveys greater trustworthiness and a more professional image to clients. 

If you’re considering the benefits of setting up a studio, a one-person company gives you flexibility and helps with future business expansion and brand building.

What Essential Skills Do You Need to Start a One-Person Company?

While opening your own studio means you don’t need to consult or share decisions with others, it also implies that all responsibilities and operational matters fall solely on you. 

To ensure your one-person studio runs smoothly, you’ll need professional expertise as well as diverse cross-disciplinary skills. The following key abilities are the foundation for building a stable business:

1. Professional Skills and Core Service Capabilities 

Your most important asset in a one-person company is yourself. Whether you’re a designer, writer, marketing consultant, or engineer, you must possess professional skills that are in demand by the market. 

This is the foundation for attracting clients and building a reputation. Continuously honing your skills and creating differentiation will help increase your pricing power and long-term competitiveness.

2. Basic Business Knowledge and Financial Management Skills

Despite its small scale, a one-person company is still a legally operating business entity. You will need to understand basic business principles, such as revenue, cost, and profit calculations, as well as how to issue invoices, file taxes, and keep accounts. 

Handling basic finances yourself can reduce outsourcing costs. However, if you’re unfamiliar with it, it’s advisable to seek assistance from an accountant to establish initial systems.

3. Time Management and Self-Discipline

Without supervision or reminders about progress, a high degree of self-discipline is required for a one-person studio. Knowing how to plan daily working hours, manage parallel project schedules, and take timely breaks and recharge is crucial for maintaining stable productivity and creative passion. 

Project management tools like Notion, Trello, and Google Calendar can help you keep track of your work rhythm.

4. Marketing and Client Relationship Management Skills

Beyond professional skills, you’ll also need to learn how to make more people aware of you and find you, so as to ensure your solo studio’s sustainable development.

As you set up your operations, this includes:

• Personal brand management
• Social media marketing
• Presentation and proposal skills
• Pricing communication
• Establishing mechanisms for repeat business and referrals

Instead of waiting for opportunities, proactively create exposure and connections to cultivate a stable client base.

5. Problem-Solving and Continuous Learning Abilities

Early in entrepreneurship, you’ll encounter unforeseen problems, such as sudden client requests, workflow bottlenecks, or system errors. Therefore, possessing the ability to make calm judgments and solve problems will help you resume operations faster and gain experience. 

At the same time, maintain a learning mindset, continuously observe industry trends, and update your skills to ensure your studio remains competitive in the long run.

The Pros and Cons of Starting Your Own Company

While starting a business alone and forming a one-person company sounds liberating and fulfilling, it also comes with its fair share of challenges. 

Wondering if opening your own studio is the right choice for you? We’ve compiled the common advantages and disadvantages of solo entrepreneurship to help you prepare mentally and practically before taking that significant step.

Benefits of Setting Up a Studio

Opening your own studio isn’t just about formalising your professional services; it’s about unlocking broader business possibilities for your personal brand. 

Whether you’re a freelancer, designer, consultant, or creator, owning a legally registered company can boost credibility and professionalism, as well as help you access markets and collaboration opportunities that were previously out of reach. Here’s a complete look at the benefits of setting up a studio from a systemic and personal operational perspective:

Systemic Benefits

1. Easier Access to Loans and Government Resources

Once a limited company is established, it gains a legal entity’s capital base and financial structure. This provides banks and government agencies with a clearer basis for reviewing loan or subsidy applications. 

With a clear company account and verifiable credit, it becomes easier to apply for small and medium-sized enterprise loans, startup grants, and other government resources, facilitating smoother access to funding.

2. Eligibility for Partnerships and Tendering Opportunities

Many large corporate collaborations, government tenders, or brand agency programmes require participants to have company registration. As an individual entrepreneur, establishing a company allows you to overcome this barrier, pursue larger-scale collaboration opportunities, and even expand into international business.

3. Legal Tax Savings and Optimised Financial Structure

Company operations allow for the itemisation of costs and expenses, such as equipment purchases, personnel costs, rent, utilities, and marketing expenses. These can all be used to deduct taxes, effectively reducing corporate income tax pressure. 

For freelancers and independent professionals whose income grows year by year, setting up a solo studio offers greater tax flexibility and room for savings compared to filing taxes as an individual.

Personal Operational Benefits

1. High Autonomy, Control Over Business Direction

A one-person company is independently led by the founder, without the need for partner discussions or internal negotiations. From service content, operating models, and pricing strategies to the selection of partners, everything is planned and executed by you, according to your own pace and vision. This allows for highly flexible and autonomous operations.

2. Rapid Development of Diverse Skills

Running your own company means you simultaneously play the roles of boss, service provider, salesperson, marketer, and financier. 

From preparing quotes and communicating with clients to building a brand and managing income and expenses, you’ll quickly learn how to run an entrepreneurship through hands-on experience, becoming a truly well-rounded professional entrepreneur.

3. Building a Personal Brand and Professional Trust

After establishing a legal company, you can issue invoices, set up an official website and business cards, and register a uniform business number. This professional image significantly increases client trust and willingness to collaborate with you. 

In particular, when dealing with corporations, government entities, or foreign businesses, forming a company is a crucial milestone in further establishing your professional brand.

Limitations of Starting Your Own Company

While setting up a one-person studio offers many benefits, there are also challenges and pressures that need to be considered beforehand. Here are two common drawbacks:

1. Limited Resources, All Pressure Borne Solely by You

Manpower, capital, and time are the most scarce resources for a one-person company. With no team to share the workload, everything from taking on projects and marketing to managing finances must be handled personally. 

As such, you will need to master how to effectively allocate and utilise limited resources on an ongoing basis.

2. Facing Difficulties and Risks Alone

The flip side of high autonomy is the difficulty in getting immediate support when problems arise. Whether it’s decision-making, operations, or crisis management, you must take charge yourself. 

This will test your mental resilience and independent thinking skills as an entrepreneur. When facing pressure and challenges, especially in the initial stages of the company, you will need strong inner fortitude and clear goals to keep going.

How to Apply for and Set Up a Personal Studio

Beyond conceptualising your business direction, you also need to understand the organisational structure options, application process, and various fees involved in opening your own studio. 

Unlike a typical company, a personal studio can be registered with greater flexibility, but it still requires adherence to regulations, preparation of basic information, and proof of venue. 

This section will guide you through how to set up a solo studio, helping you take your first entrepreneurial step more smoothly. 

One-Person Studio vs. One-Person Company 

In Taiwan, a one-person studio is a type of firm rather than a formal corporate organisation. In contrast, a one-person company is a limited company established under the Company Act. The two differ in terms of registration thresholds, liability systems, and flexibility for future development.

To help you choose the path that best fits your goals, the following table summarises the main comparisons between the one-person studios and one-person companies:

While setting up a sole proprietorship has lower barriers and is quicker to establish, forming a limited company offers greater legal protection and business development potential. These factors may be more relevant if you aim to expand operations, take on large projects, or collaborate with corporations in the future.

The One-Person Company Application Process 

If you’re wondering how to apply for your personal studio as you establish a one-person company, the process is actually clearer and easier to understand than you might think. 

As long as you follow the steps sequentially from company name pre-application to completing tax registration, you can successfully complete the setup process and officially begin operations. Here are the application steps:

1. Company Name Pre-Application and Business Scope Selection

First, access the Ministry of Economic Affairs’ One-Stop Online Application System and navigate to ‘Name and Business Scope Pre-Application’. 

Enter three to five potential company names and your intended business activities. Within one to four working days, you will receive a Company Name and Business Scope Pre-Application Approval Letter. 

This approval letter is valid for 6 months, so remember to complete the subsequent steps within this period.

2. Seal Production and Preparatory Account Opening

Once the company name is approved, you can have your company seals made (including the company seal, invoice seal, and person-in-charge’s personal seal). 

With the relevant documents (such as ID card and approval letter), open a company preparation account with a bank. This account will be used to deposit the capital. Ensure that the deposit is made in the shareholder’s name so that there is a record of the source of funds. 

If someone else makes the deposit on your behalf, you will need to prepare a sworn statement or provide supplementary supporting documents.

3. Capital Verification Process and Accountant Endorsement

After completing the deposit and obtaining a Deposit Balance Certificate, you will need an accountant to confirm that the funds have been successfully deposited through capital verification. 

For verification, you’ll need to provide: 

• Deposit certificate
• Copy of the person-in-charge’s ID
• Draft Articles of Incorporation
• Copy of the pre-application approval letter, 
• Account copy

Once verification is complete, you will receive a formal Certified Public Accountant’s Capital Audit Report.

4. Company Registration Application

Through the Ministry of Economic Affairs’ One-Person Company Fast Application system, enter your pre-application approval number and basic company information. You will need to upload:

• Accountant’s report
• Copy of the Articles of Incorporation
• Signed documents from the person-in-charge

After paying the NT$700 registration fee online, you can submit your application. During the application process, you can also simultaneously apply for a Business Certificate, which will make future tax filing and electronic operations more convenient.

5. Tax Registration and Official Operation

After your company’s establishment is approved, you must complete business tax registration at the relevant national tax bureau. Remember to bring the relevant documents, such as the approval letter and registration form.

Upon approval, you will receive an Operating Registration Official Document. You can then obtain a tax invoice purchase certificate or apply for a sticker indicating exemption from issuing uniform invoices, officially commencing operations.

6. CTP Company Transparency Platform Reporting

In accordance with the Anti-Money Laundering Act, company founders must report the company’s person-in-charge and shareholder information on the CTP platform within 15 days of establishment. 

If the information changes, it must be updated immediately. If there are no changes, an annual report must be filed between 1 and 31 March each year.

Additional Note on Articles of Incorporation

A one-person studio also needs to prepare a copy of its Articles of Incorporation as one of the application documents. 

If you’re unsure where to start, you can refer to the “One-Person Limited Company Articles of Incorporation Example” provided by the Ministry of Economic Affairs. You can simply fill in and modify the format, so there’s no need to worry about difficulties in writing the content. 

Don’t worry if you don’t have a fixed office space when you first set up your business. JustCo provides legally compliant virtual offices that can be used as a registered address, helping you launch your business more flexibly. This relieves the pressure of renting an office while helping you to build a professional image.

What Every One-Person Company Must Know: Costs, Taxes, and Insurance Explained

While the barriers to opening your own studio are not high, it is still crucial to grasp important financial and legal details during the initial set up and ongoing operations. Below, we’ll explain three major aspects: costs, taxes, and insurance.

1. What are the costs involved in setting up a one-person company?

In the initial setup phase, in addition to the capital determined by the company’s operational needs, there are several essential administrative costs:

• Company Name Pre-application Fee: Approximately NT$150, paid to the Ministry of Economic Affairs to check if the company name is available.
• Seal Production: The company seal, invoice seal, and the person-in-charge’s personal seal cost approximately NT$500 to NT$1,000 in total, depending on the material and craftsmanship.
• Opening a Preparatory Account and Obtaining a Deposit Balance Certificate: Banks will charge a handling fee of about NT$50 as proof that the capital has been deposited into the account.
• Capital Verification Fee: An accountant performs capital verification and issues a report, with fees ranging from approximately NT$2,000 to NT$4,000.
• Online Company Registration and Business Certificate Application Fee: The setup fee is NT$700 and the business certificate costs about NT$420.

Overall, the one-time cost of opening your own studio as a one-person company ranges from NT$6,000 to NT$7,000. If you wish to save time and reduce the risk of errors, you might consider entrusting a professional firm to assist with the set up process.

2. What taxes should a one-person company be aware of in its operations?

Once officially operational, taxes will become a major focus for your solo studio’s continued operation:

• Withholding Tax Statement Declaration: Before the end of January each year, you must declare the previous year’s salaries, rents, or other withholding items, in compliance with the Income Tax Act. Failure to declare may result in penalties.
• Business Tax Declaration: According to the Business Tax Act, this is declared every two months (before the 15th of odd-numbered months). The tax rate varies according to the type of industry, with a common example being a 5% value-added tax rate.
• Corporate Income Tax Declaration: The annual corporate income tax declaration is conducted in May each year. This involves calculating annual income, costs, and deductible expenses. As the complexity of tax filing is higher, it’s recommended to use the Ministry of Finance’s Corporate Income Tax Calculation System or consult a professional accountant to ensure legal tax savings.

3. How should health insurance and labour insurance be handled after establishing a one-person company?

Whether you are a full-time entrepreneur will affect how the person-in-charge of a one-person company is insured:

• Health Insurance: If you still hold a full-time job, you can maintain your original unit’s insurance. If you are exclusively operating the company, you should apply to the National Health Insurance Administration to set up a health insurance contribution unit. The most basic insurance premium bracket is NT$34,800. This insurance is mandatory, and those uninsured may face a fine of two to four times the amount. 
• Labour Insurance: Individuals generally cannot set up their own labour insurance contribution unit directly through the company. Typically, they join through a professional union or pay into the National Pension, securing their future retirement life.
• After Hiring Employees: According to the Labour Insurance Act, if a company employs one or more employees, it should establish a labour insurance contribution unit to protect its employees’ labour rights and avoid future labour disputes.

Mastering these points will not only enhance your company’s financial and regulatory compliance, but also lay a solid foundation for stable future operations. 

Frequently Asked Questions About One-Person Companies

This section will compile and answer some of the most common questions entrepreneurs encounter, helping you gain a clearer direction on how to set up a solo studio.

Is there a capital requirement for one-person companies?

According to Taiwan’s Company Act, there’s currently no explicit minimum capital threshold for opening your own studio. As such, a ‘NT$1 startup’ is theoretically feasible. 

However, in practice, it’s advisable to set a reasonable capital amount aside to increase external trust in the company. For example, banks consider the capital amount when opening company accounts, clients evaluate potential partners, and the government reviews subsidy applications, all using it as an indirect indicator of operational scale. 

Therefore, it’s recommended to initially set the capital at NT$50,000 to NT$100,000 or more. This amount is generally suitable for covering initial operating expenses and partnership needs, while also presenting a complete and stable company image.

How long does it take to set up a one-person studio?

The overall process of opening your own studio isn’t overly complex, but it requires completing various administrative procedures sequentially. If the process is smooth and all documents are complete, it typically takes about seven to 14 business days to complete. 

If you choose to engage an accounting firm or professional agency for assistance, the time can be further shortened to five to seven days. This option also reduces the risk of document errors or procedural delays. 

Can I use my home address for company registration?

In most cases, you can use your home address as your company’s registered address, but you need to be aware of a few prerequisites:

• The address must be in a legal building (not an illegal structure)
• It must not violate residential zoning regulations and management rules
• The building’s management committee must not explicitly prohibit commercial use

If your building has a management committee, do check in advance if company registration is allowed to avoid future disputes.

However, you might prefer not to make your home information public or have concerns about insufficient client trust. If so, you can consider using a co-working space or virtual office address. JustCo’s virtual office solutions are an excellent option, allowing you to quickly obtain a legal registered address and access professional meeting rooms, mail reception, and shared spaces, all of which enhance your company’s image.

How to close a one-person company?

If your operations conclude and you wish to formally close your company in the future, there is a legal process to follow. Here’s how to go about it:

1. Settle your taxes, which includes filing the final business tax and corporate income tax declarations. 
2. Apply to cancel your invoice purchase certificate and unified business number. 
3. Apply to the Ministry of Economic Affairs’ Department of Commerce for company dissolution and liquidation registration. The liquidation process involves public announcements, settling debts, and handling remaining assets.

The entire procedure typically takes about one to two months, but may take longer if it involves employee severance or asset transfers. Consider entrusting a professional accountant to handle the closing process to ensure no documents or tax matters are overlooked, preventing future tax clawbacks or penalties.

Is it better to handle company setup yourself or hire an agent?

Choosing to handle the process yourself or outsource it mainly depends on your time availability and familiarity with administrative procedures. If you’re comfortable with administrative processes and want a deep understanding of every detail behind your company’s establishment, self-application offers learning value and can save some costs.

However, if your time is limited, or you wish to focus your efforts on business development and client acquisition, it’s generally more efficient to have a professional accountant or agency handle it. This can also help you avoid common mistakes (such as non-compliant articles of incorporation formats or incorrect capital declarations) that could lead to rejections or delays in document submission.