Taiwan exists as an island close to China but is not a part of it. Often, people hear of Taiwan in newscasts, making them remember the product labels bearing its name. For some foreigners, this is enough to make them start thinking about how to do business in Taiwan.
And this is no surprise for many foreign entrepreneurs, investors, and companies because Taiwan is a lucrative spot to trade. The World Bank has consistently ranked it among the top 15 countries worldwide regarding “ease of doing business.”
Step 1: Learn more about Taiwan
The island itself holds a huge market as it has a population of 23,893,650. It has a unique culture that is different from that of China. The Taiwanese stay shrewd but fair business people who value trustworthiness. They observe the Chinese tradition of doing business, believing that networks open doors to new businesses and facilitate trades.
As a result, this approach, called “guanxi,” places certain importance on relationships, besides viewing them as lasting investments. As a result, most family-owned businesses stay as small or medium-sized enterprises. Also, Taiwan tops the 2021 list of the best countries to retire.
General business climate
Taiwan is proud of its uncompromising commitment to quality. So, the country is known for its heavy scientific and technological investments. As a result, firms carefully protect their Intellectual Property Rights. Thus, foreigners thinking of how to do business in Taiwan are confident that the country has the high-tech chops to facilitate solving even the most challenging business problems. Doesn’t this make Taiwan a perfect base when planning to expand business in Southeast Asia? It is near the Philippines, Cambodia, Singapore, Myanmar, Thailand, Timor-Leste, Vietnam, Indonesia, Japan, Laos, Hong Kong, Malaysia, and Brunei.
On top of that, its cities remain clean, relatively cheap, and friendly. What’s more, its landscape is charming, offering outdoor enthusiasts lots of choices on what to do.
Culture
At the onset, it is best to know that there are intense group conflicts in trade and industry areas in Taiwan. Also, heads are strict due to the ranked structure found in most firms. Aside from “guanxi,” Taiwan’s business values also take in customs of Japan that Confucianism highly inspires.
Of precise import are the beliefs of team spirit, staunchness, and respect. Today, there still are much older Taiwanese folks who speak Japanese as Japan once ruled over the country. So, foreign persons thinking of how to do business in Taiwan must know that Japanese exists as an elite foreign language among some native business persons.
Economy
Taiwan holds a stable and advanced business economy and stands among the high-earning economies in the world. However, over the last two decades, its economic growth has been driven by selling products outside of the country. Famous for its production capabilities, its economy recently transitioned to capital-intensive service and technology industries, which now compose about 35% of the industrial structure of Taiwan.
Currency
The official currency of Taiwan is the NTD or New Taiwan dollar, with a conversion rate of 1 NTD = 0.034 USD. Hence, purchasing Taiwan’s export products seems logical for businesses. Moreover, their exported supplies are likely much cheaper than domestically produced products.
So, Taiwan can provide many businesses with the most acceptable price! What’s more, Taiwan’s excellent top-notch transport makes it cheaper for its goods to be sent to the United States and anywhere else.
Step 2: Company Incorporation
If the business plan is ready and the decision to launch or branch out a business to Taiwan is final, it is time to take this step. Taiwan welcomes any foreigner to do business in the country. However, the launching process has to be studied by the Investment Commission beforehand.
PREMIA TNC
Since the review period can last for six months, PREMIA TNC can assist all foreigners planning to do business in Taiwan. By checking out our website, prospective investors get added knowledge on:
- The pros and cons of opening a company in Taiwan,
- How to open a company in Taiwan, and
- The procedure and required documents to register a company in Taiwan.
The FAQ section even answers many questions on the realities of investing and doing business in Taiwan. Services offered can range from creating a lawful local presence to managing labor matters, besides tax and accounting compliance requisites.
Step 3: Tackle the brass tacks of the business
The business nitty-gritty commences as soon as the audit report presents that the capital invested is sufficient to cover the company establishment expenses. Some of the listed items may not apply if the company opts to lease its facilities.
Electric connection, as needed
The Taiwan Power Company is in charge of electrical connection, which takes three weeks, at least, to connect a property to the national network. Once the request is submitted, TPC conducts an external check-up, connection works, the installation of the meter, and an internal cabling inspection.
Paying taxes
It can take around 28 working days each year to do this. And that is because some levies stay unfamiliar to foreign firms. On top of that, taxes on city house and vehicle licenses, besides contract stamp duties, can be often overlooked. With PREMIA TNC, though, this cannot pose a problem.
Handling of building permits, if applicable
Construction has substantially improved over the years regarding bureaucracy and red tape. The improvement arises from drastic cuts in the procedures and timeframe to finish the process. Still, many areas require local assistance to navigate.
Property registration, as needed
The process takes just a few days. However, the expense is a bit more than the average rates of the Organization for Economic Co-operation and Development countries. It is also higher than the standard rates for the Pacific and East Asia regions.
Besides taxes against the asset, property rights have to be researched first at the titles registry. Once done, payment for the Tax Deed in the area comes next. Then, it is time to process the title transfer at the Land Registry. Note that foreign companies and nationals can buy general commercial or residential properties in Taiwan based on reciprocity or international relations.
Protecting investors and getting credit
Private bureau insurance is superb in Taiwan, but the deficiency in a public archive can restrict the credit supply. Still, Taiwan is proud of its investor protection and ranking well on every index monitored by the International Finance Corporation, besides the World Bank.
Step 4: Analyzing Incentive Structures and E-Commerce Strategies
How to Do Business in Taiwan: Considering Investment Incentives and Free Trade Zones
Government Support for Key Industries
When exploring how to do business in Taiwan, one of the first considerations should be the government’s supportive stance toward foreign investment. Taiwan actively promotes investment in strategic sectors such as semiconductors, renewable energy, biotechnology, and smart manufacturing. Foreign investors in these areas may qualify for tax benefits, funding assistance, and access to government-led innovation programs designed to foster sustainable development and industrial competitiveness.
Advantages of Operating in Free Trade Zones
Setting up operations in Taiwan’s Free Trade Zones (FTZs) can provide businesses with significant logistical and financial advantages. These zones offer streamlined customs procedures, duty-free imports of raw materials, and reduced regulatory barriers. Popular FTZs such as those in Kaohsiung and Taichung are located near major ports and airports, enabling efficient supply chain management. Companies operating within these zones benefit from well-developed infrastructure, reduced operational costs, and easier access to global markets.
Opportunities in Science and Technology Parks
In addition to FTZs, Taiwan is home to several Science and Technology Parks, including Hsinchu Science Park and Central Taiwan Science Park. These parks are designed to attract tech-focused enterprises and provide a collaborative environment where innovation thrives. Businesses located in these zones often enjoy tax credits for R&D activities, access to skilled labor, and opportunities to partner with academic and research institutions.
Financial Incentives for Innovation and Growth
Foreign businesses involved in research, product development, or technological innovation may also tap into various national and regional grant programs. These include financial subsidies, land acquisition support, and favorable loan conditions. Such incentives are particularly beneficial for startups and SMEs seeking a cost-effective entry into Taiwan’s competitive market. Understanding and leveraging these programs can significantly lower the barrier to entry and enhance long-term profitability.
How to Do Business in Taiwan: Building a Digital and E-Commerce Strategy
A Digitally Connected Consumer Market
Taiwan has one of the highest internet penetration rates in Asia, making it an ideal environment for digital business models. Companies exploring how to do business in Taiwan should prioritize establishing a strong online presence from the outset. Taiwanese consumers are highly mobile-oriented and responsive to digital marketing, particularly on social media and e-commerce platforms.
Integration with Local Payment Systems
A crucial part of building an effective digital strategy in Taiwan involves integrating with the country’s preferred payment systems. Younger consumers, in particular, widely use digital wallets like LINE Pay and JKOPAY. Ensuring compatibility with these platforms helps create a smooth checkout experience and builds customer trust. Businesses should also consider enabling contactless card options such as EasyCard, which is popular in both retail and transportation sectors.
Choosing the Right E-Commerce Platforms
Entering the e-commerce space in Taiwan requires more than simply launching a website. Dominant local platforms like Shopee Taiwan, PChome, and MOMO offer access to large customer bases and built-in logistics support. However, foreign sellers must pay close attention to regulations related to product labeling, import duties, and consumer protection. Adapting product listings into Traditional Chinese and offering localized customer service are key to achieving higher conversion rates.
Effective Use of Digital Marketing Channels
To compete effectively in the Taiwanese market, digital marketing should be tailored to local preferences. Platforms like Facebook, Instagram, and YouTube are widely used for product discovery and brand engagement. Partnering with Taiwanese influencers, or Key Opinion Leaders (KOLs), can amplify visibility and credibility. Additionally, optimizing content for search engines using Traditional Chinese keywords improves discoverability and helps drive organic traffic.
Why Choose Us for Starting a Business in Taiwan?
Without any doubt, Taiwan is among the best places to invest. Perhaps, its foreign exchange constancy in the world affirms that. So, to ensure a smooth entry into Taiwan’s business realm, take comfort in knowing that PREMIA TNC is ready to help.
