Taiwan's economy is the seventh biggest in Asia, placing it in an important position globally. It has a stable and competitive economy that is mostly driven by industrial manufacturing, particularly exports of electronics, machines, and petrochemicals. It provides access to an educated workforce and continues to be one of the world's top technology investment locations.
Taiwan is a hotbed of technology and manufacturing innovation, propelled by a strong entrepreneurial spirit. With significant incorporation expertise, Tetra Consultants assist you in considering all choices, navigating local norms and regulations, and obtaining the resources required to assure success. We contribute to the success of your global expansion by streamlining your Taiwanese business on all fronts and allowing you to focus on your main business. In case you have already planned to register company in Taiwan, it is important that consider the business landscape and the benefits associated with the incorporation of your business in Taiwan.
- Taiwan is strategically located in the region of the Asia-Pacific linking North and South East Asia. Flights from Taipei to major Asian cities such as Shanghai, Tokyo, Hong Kong, Singapore, and Seoul take less than three hours. Many international corporations chose Taiwan as their Asia-Pacific headquarters because of its central and accessible location. Taiwan is also an important center for transshipments and shipments in the Asia-Pacific and East Asia regions. Taiwan is therefore an essential link in worldwide supply networks.
- Taiwan continues to make significant investments in transportation, digitization, green energy development, water enhancement, and urban and rural growth. Taiwan's government places a high value on the improvement of both digital and physical infrastructure.
- Taiwan has a well-developed transportation system. Their extensive network includes 17 airports, four of which are international, as well as seven international harbors. In addition, the network comprises an island-wide railway system, a west coast high-speed rail line, and metro systems in Taipei and Kaohsiung.
3. Ease of doing business?
- Since the business registration procedure can be completed online, starting a business in Taiwan is very simple. Taiwan is actually ranked 15 out of 190 countries and territories by the World Bank in terms of how easy it is to do business there in 2020. There are no residency or nationality restrictions for the director of a Taiwan business, in addition to the fact that there are no capital requirements for forming a Taiwan corporate entity. This implies that a Taiwanese business can have 100% foreign ownership. Taiwan is a desirable jurisdiction for foreigners looking to grow their businesses to the Chinese market due to the less onerous regulations for establishing a company there as a foreigner.
- Taiwan has a robust legal system to guarantee that company owners' assets are well-protected. In particular, the government has put in place a number of measures to guarantee that intellectual property rights are protected in order to promote economic innovation. To legally handle intellectual property and commercial matters and promote the jurisdiction's advancement in technological innovation, the Intellectual Property and Commercial Court Organization Act was passed.?
- A key factor in ensuring that company operations run smoothly and unfair commercial practices are minimized is Taiwan's extensive business regulations, tough law enforcement, and stable political environment. The Taiwan Tax Administration also has stringent guidelines and standards in place to guarantee that all businesses prepare their annual reports in strict accordance with the International Financial Reporting Standard. This enables Taiwanese enterprises to be more credible and transparent.
5. Relatively low tax rate?
- Taiwan has a 20% corporate tax rate, which is comparatively low. Regardless of where the income was generated, all registered companies that make more than TWD 120,000 are obligated to pay corporate taxes on their net income. Only income earned in Taiwan will be taxed for non-resident companies. Additionally, entities having a yearly income of more than TWD 480,000 will be charged value-added tax (VAT). Taiwan is thought to have comparatively lower tax rates than many other countries.
- With a 59.2% labor force participation rate and 36% of workers employed in the industrial sector, Taiwan has a comparatively large labor force. As a result, it is strongly recommended that you start a business in Taiwan's industrial sector since it allows you more access to a trained workforce with the required knowledge and skills in industrial processes and industrial development. An estimated 45 percent of Taiwanese citizens between the ages of 25 and 64 have completed at least one year of college. Although Mandarin is Taiwan's official language, the majority of its citizens are able to comprehend and use English.?
7. Support from international markets
- Taiwan and Mainland China continue to have a robust cross-strait business partnership despite the recent rise in animosity between the two countries. More than a quarter of Taiwan's exports go to Mainland China, which continues to be the island nation's top trading partner. The US and nearby Asian nations including Singapore, Japan, South Korea, and Vietnam are other important commercial partners for Taiwan. Consequently, forming a company in Taiwan can provide your business access to both the enormous Chinese market and the neighboring Asian markets.
8. Benefits of incorporating in Free Trade Zones (FTZ)?
- Taiwan presently has 7 free trade zones, which are situated in the ports of Kaohsiung, Taichung, Taoyuan International Airport, Taipei, Anping, Keelung, and Suao, respectively. The purpose of Taiwan's free trade zones is to facilitate company operations in certain industries and to entice new businesses to locate there. The Free Trade Zones in Taiwan provide newly established businesses with several benefits, including tax advantages, a robust infrastructure for assistance, an easy Taiwan business registration process, and various financial incentives and subsidies. Additionally, companies incorporated in Taiwan's free trade zones may be immune from import duties, VAT, and corporate income taxes.
- Each Taiwanese free trade zone features specialized industries, such as manufacturing, transport, processing, warehousing, trading, repairing, and other technological services. The Free Trade Zones in Taiwan are often found in areas that are easily reached by road, sea, and air. This makes it easier to transport products and services into and out of the free trade zone.
Conclusion:
- Setting up a company in Taiwan has several advantages. Compared to many other countries, the requirements to form a limited liability corporation are also less onerous. You may start a business in Taiwan as long as you have one shareholder, one director, and a registered address there. There is no residency or nationality requirement for directors or shareholders in a Taiwan corporation, in addition to the lack of a capital requirement for company formation. All incorporation documents, including the Memorandum and Articles of Association, must be drafted in Traditional Chinese because Mandarin is Taiwan's official language.
- As a result, Tetra Consultants can offer you a quick and simple way to register a company in Taiwan through our service package, which also includes opening a corporate bank account, tax registration, and annual accounting and tax services. This service package also includes providing a local company secretary and registered address as well as registering your company with the Ministry of Economic Affairs in Taiwan. In addition to giving a comprehensive overview of how to start up a business in Taiwan, Tetra Consultants will also recommend the most appropriate kind of business entity for your organization based on your long-term objectives and business model.
- Contact us now to know more about how to incorporate your business in Taiwan, and our team of experts will revert within the next 24 hours.?
