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.
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.
