Taiwan provides the ideal setting for entering Asia for businesses aiming to expand their global footprint. Taiwan’s economy is expanding as a result of its policies favoring foreigners. The nation has kept up its economic development despite the pandemic’s impact. In actuality, economic growth in Taiwan was about 3.12% in 2020, and this growth is anticipated to continue.
Taiwan might be an excellent location to establish commercial operations due to its business-friendly policies and welcoming attitude toward foreign corporations.
Steps to setting up a company in Taiwan
Whether you intend to employ a foreign partnership, subsidiary, or representative office as your business structure will determine the specific actions necessary to start up a firm in Taiwan. However, a foreign branch is the most typical type of business.
Request a corporate name search and reservation
The business must complete this step to preserve its company name. Applications for reservations can be submitted by businesses online, by mail to their offices, or in person at the Department of Commerce of the Ministry of Economic Affairs (MOEA).
Request authorization for foreign investment
Following the approval of the company name, your company must submit the necessary papers to the MOEA’s Department of Commerce to be recognized and registered as a foreign company.
Apply for the examination of investment capital
According to Taiwanese legislation, the Investment Commission is required to investigate all foreign corporations for their sources of investment capital. After receiving authorization for foreign investment and remitting investment funds to Taiwan, organizations are eligible to take this examination.
The following papers are needed for this step:
- Application Form C
- A letter of authorization for foreign investment from the MOEA’s Investment Commission.
- The firm’s three bank-issued records: remittance advice, a foreign exchange memorandum, and an account passbook.
Apply for importer/exporter English name and registration
After completing all of the preceding stages and obtaining legal registration in Taiwan, you must reserve an English trading name to import and export items from other countries. This stage can be finished by using the MOEA’s Bureau of Foreign Trade. Then, your business must be registered using your English name.
Two application forms—one for reserving the company’s English name and another for registering as an importer or exporter—are required for this phase.
Apply for business registration
A local agency of the national tax authority will frequently automatically execute this stage for you. This will be done once they observe that your company is formally registered, has all the necessary approvals, and that they have received the information regarding your company’s registration. However, if the agency requests it, your company might need to submit more supporting documentation.
Are foreigners permitted to launch businesses in Taiwan
The Taiwanese government actively promotes international companies. In actuality, because of Taiwan’s openness to foreigners and business, many organizations (especially tech firms) choose to base their Asian operations there. For instance, Microsoft recently unveiled a new program called “Reimagine Taiwan” to considerably increase its footprint in the nation.
Companies that wish to conduct business in this country typically register as local limited liability companies or LLCs. Non-resident foreigners are only permitted as one shareholder and one director of a Taiwan LLC. Because it requires fewer administrative requirements and is more adaptable than other solutions, for many businesses this is the ideal option.
What it cost to start a business
Starting a business here requires an initial investment, just like any other type of business. Starting a business in Taiwan involves paying for paperwork, hiring a CPA and several lawyers, as well as other supplemental expenditures.
The typical expenditure during the first year of incorporation is $8,545 (US dollars). The following years typically have no yearly corporate costs. The average cost of a Taiwan engagement is $15,040. Although the actual cost will vary depending on the entity type that your firm selects, your business’s specific needs, and how quickly you want to open an office there.
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