Taiwan has evolved into an ideal business hub in Southeast Asia over the years. According to a 2021 survey, Taiwan boasts a 90% confidence rating, making it an attractive destination for entrepreneurs. This positive outlook is largely due to several advantages the country offers, such as an educated workforce, strategic geographical location, sturdy legal environment, excellent infrastructure, and a robust IT cluster.
Located near Japan, Vietnam, Hong Kong, and other Asian countries, Taiwan is known for its clean, affordable, and friendly cities. Additionally, the Taiwanese government provides incentives for specific industries, making it even more appealing for businesses. With its world-leading technology and strong business environment, both local and foreign start-ups are increasingly considering starting a business in Taiwan.
However, it is crucial to understand the nuances of doing business in Taiwan, especially for foreign investors. By gaining more knowledge and seeking assistance from professionals, starting a business in Taiwan as a foreigner can be seamless and successful. Despite the inevitable challenges that come with doing business anywhere, having the right information and support can make the process much smoother.
Factors to Consider in Starting a Business in Taiwan as a Foreigner
Culture
Mandarin Chinese is the predominant language in Taiwan, alongside Hokkien (Taiwanese), Hakka, and over a dozen native dialects. English is spoken mainly in large metropolitan areas and among the younger population. Taiwan’s business culture incorporates elements of both Japanese and mainland Chinese customs, heavily influenced by Confucian principles. Values such as a strong social network, respect, team spirit, and loyalty are highly emphasized. Consequently, many Taiwanese firms maintain a strict hierarchical structure. In professional settings, business people typically greet each other with a handshake and exchange business cards. Given Taiwan’s export-driven economy, many Taiwanese business leaders are well-versed in global business etiquette.
For those starting a business in Taiwan, it’s useful to know that there are around 15 or fewer annual public holidays, some based on the Gregorian calendar and others on the lunar calendar. The Taiwanese approach to business is characterized by a calm and considerate demeanor.
Visa Requirements for Businesses
To obtain an entry permit for a visitor visa with a business purpose, applicants must submit several documents. These include a signed legal passport valid for at least six months with two blank pages, a fully completed online request form with a printed barcode, and two recent 2×2 color photos taken within the last six months without glasses.
Additionally, a photocopy of the most recent bank statement with the traveler’s name, and a company letter on letterhead detailing the trip’s purpose and duration, along with a commitment to cover all expenses, are required.
Applicants must also provide an invitation letter from the Taiwanese host company on letterhead with a company seal, including the applicant’s full name, passport number, birth date, and the signature of the inviting Taiwanese contact. An onward or return ticket, or a confirmed itinerary with hotel bookings that include the applicant’s name, entry and exit dates, and flight information, is necessary. If applicable, a signed authorization letter allowing a representative to submit or collect documents and passports at the Taiwanese embassy is also required.
Alternatives
Starting a business in Taiwan as a foreign entity involves a mandatory review and approval process by the Investment Commission of the Ministry of Economic Affairs. This process typically spans several months to nearly half a year. Consequently, many foreign firms entering the Taiwanese market engage local brokers or agents to navigate the initial trade district establishment.
For entities not incorporated locally, establishing a branch or representative office is often preferred, especially for larger markets or offshore firms aiming to establish a stable market presence. Taiwan’s investment framework allows foreign investors to participate in most business sectors, with certain exceptions reserved exclusively for local investors.
Before commencing operations in Taiwan, international investors must determine the type of entity they wish to establish, as permitted under Taiwan’s Company Act. The authorized entity types include subsidiaries, foreign branches, and representative offices, each suited to different business objectives and operations in Taiwan.
Considerations Prior to Employment
If the firm plans to hire staff locally, the foreign investors must decide whether to manage the hiring process themselves or outsource it. Engaging service providers can also encompass tasks like payroll management and other corporate responsibilities in Taiwan. Additionally, there might be a need to employ professionals to assist with the incorporation process as well as handling accounting and tax compliance requirements.
The Best Thing to Do When Starting a Business in Taiwan as a Foreigner
Engaging a professional group offers an innovative solution for companies launching a business in Taiwan. This approach ensures a quick start, efficient office setup, and adherence to a defined budget while minimizing initial commitments to the country. Moreover, it is an ideal option for firms needing assistance with payroll and tax compliance, employment, and immigration in Taiwan.
Why Premia TNC is Your Best Bet When Starting a Business in Taiwan as a Foreigner
Starting a business in Taiwan may seem straightforward, but it involves complexities that make expert assistance valuable. Our firm simplifies this process, from online business name searches and incorporation to tax registration and insurance setup. Once the business seal is ready, an audit statement is required to confirm sufficient capital for formation expenses. Navigating Taiwan’s intricate incorporation rules can be challenging, but we offer comprehensive support to ensure a seamless experience for our clients.
