Taiwan free zones
Taiwan currently has 7 free trade zones, six sea ports and one airport: i) Keelung Port FTZ, ii) Suao Port FTZ, iii) Taipei Port FTZ, iv) Taoyuan Air Cargo Park FTZ, v) Taichung Port FTZ, vi) Anping Port FTZ, vii) Kaohsiung Port FTZ.
With over 10 years of experience with business incorporation worldwide, Healy Consultants can help our Clients to establish a company in the Taiwan Free Trade Zone of their preference.
- All of Taiwan’s free trade zones are strategic located to provide easy access to Hong Kong, mainland China, Japan and ASEAN countries;
- All companies incorporated in the FTZ are exempt from commodity tax, tobacco and liquor tax, public health and welfare duty on tobacco products, business tax, trade promotion service fee, custom duty and harbor service fee;
- Furthermore, 0% corporate tax rate applies for the transaction of commodities, equipment and services between Taiwan FTZs and bonded areas;
- Custom clearance is exempted from inspection when shipped to or from the Free Zones;
- Companies are allowed to have up to 40% of its total employees composed of foreign workers.
- 19 type of industries are allowed to set up activities in the Free Zones: i) trade ii) storage iii) logistics iv) cargo management v) transshipment vi) transfer vii) outsourced delivery viii) custom declaration ix) fabrication x) reassembly xi) packaging xii) repair xiii) assembly xiv) processing xv) manufacturing xvi) inspection xvii) testing xviii) exhibition and xix) technical services;
- Companies must rest a physical space in the FTZs, usually in the form of warehousing or manufacturing space;
- Although there is no minimum paid up capital, we recommend US$100,000 for the company incorporation, to secure an FTZ operating license, and to secure the physical office space;
- In order to apply for a FTZ operating license, the company must provide the following documents: i) application form ii) detailed business plan iii) copies of lease agreements iv) investment certificates v) online customs clearance forms vi) cargo handling and management processes vii) electricity and water consumption plan viii) CVs and personal documents of all investors and ix) Taiwanese company’s corporate documents;
- An in person interview will also be required when applying for the Taoyuan Air Cargo Park FTZ.
Comparison between the different Taiwan trade free zones
|Keelung Port FTZ||Kaohsiung Port FTZ||Taichung Port FTZ||Taipei Port FTZ||Taoyuan Air Cargo Park FTZ||Suao Port FTZ||Anping Port FTZ|
|Average annual industrial space rent per 1000sqm||US$ 21,000||US$ 20,000||US$ 20,000||US$ 25,000||US$ 44,000||US$ 21,000||US$ 25,000|
|How long to set up the company?||5 weeks||5 weeks||5 weeks||5 weeks||5 weeks||5 weeks||5 weeks|
|How long to open company bank account?||2 weeks||2 weeks||2 weeks||2 weeks||2 weeks||2 weeks||2 weeks|
|Quality of utilities||Good||Very good||Very good||Very good||Very good||Good||Good|
|Allowed to sign sales contracts with Taiwanese Clients?||Yes||Yes||Yes||Yes||Yes||Yes||Yes|
|Corporate tax payable in Taiwan||Dependent on the activity||Dependent on the activity||Dependent on the activity||Dependent on the activity||Dependent on the activity||Dependent on the activity||Dependent on the activity|
|Corporate bank account||HSBC||Deutsche Bank||Citibank||SC||HSBC||Deutsche Bank||Citibank|
|Physical office space required||Yes||Yes||Yes||Yes||Yes||Yes||Yes|
|Industrial space availability||Limited||Many||Many||Limited||Limited||Limited||Limited|
|Allowed to import raw materials?||Yes||Yes||Yes||Yes||Yes||Yes||Yes|
|Allowed to export goods?||Yes||Yes||Yes||Yes||Yes||Yes||Yes|
|Wholly foreign owned?||Yes||Yes||Yes||Yes||Yes||Yes||Yes|
|Can hire expatriate staff in Taiwan?||Yes||Yes||Yes||Yes||Yes||Yes||Yes|
|Do you visit Taiwan for company incorporation?||Yes||Yes||Yes||Yes||Yes||Yes||Yes|
|Minimum number of directors||1||1||1||1||1||1||1|
|Minimum number of shareholders||1||1||1||1||1||1||1|
|Tax registration certificate required||Yes||Yes||Yes||Yes||Yes||Yes||Yes|
|Individual shareholders allowed||Yes||Yes||Yes||Yes||Yes||Yes||Yes|
|Corporate shareholders allowed||Yes||Yes||Yes||Yes||Yes||Yes||Yes|
|Corporate directors allowed||Yes||Yes||Yes||Yes||Yes||Yes||Yes|
|Public register of shareholders and directors||Yes||Yes||Yes||Yes||Yes||Yes||Yes|
|LLC company allowed||Yes||Yes||Yes||Yes||Yes||Yes||Yes|
|Can apply for immigration visa||Yes||Yes||Yes||Yes||Yes||Yes||Yes|
|Annual audited financial statement||Yes||Yes||Yes||Yes||Yes||Yes||Yes|
Keelung Port Free Trade Zone
- Located in the north of Taiwan, the FTZ gives easy access to Xizhi, Nangang, and Neihu science parks; the industrial parks in Dawulun, Ruifang, and Liudu; and to the capital, Taipei;
- It is Twain’s oldest FTZ, with an area of 71.16 hectares;
- The FTZ is especially suited for entities that are dealing with storage, logistics, assembling, rallying, packaging, simple processing, freight forwarding, transshipment, and transport.
Kaohsiung Port Free Trade Zone
- Kaohsiung Port FTZ is located in the south of Taiwan, occupying 415 hectares of space, one of the biggest FTZ in the country;
- Kaohsiung port is the largest port in the country, with several lines connecting it to mainland China, Japan and ASEAN countries;
- This FTZ aldo has convenient land transportation links to nearby industrial areas such as Tianan City, Tainan County, Kaohsiung and Pingtung County, and to Siaogang International Airport;
- Kaohsiung Harbor Bureau is currently proposing to purchase a plot of reclaimed land under the Kaohsiung City’s South Star Project to build a solar energy industrial district in the free trade zone;
- This port is suitable for steel shipping, ship building and biotechnology businesses.
Taichung Port Free Trade Zone
- Taichung Port FTZ is located in the center of the country, covers a total area of 536 hectares, the biggest in the country, and it is situated between important industrial points such as the Shanghai-Hong Kong shipping route, Taichung Airport and the harbors of Mainland China;
- Due to its advantageous geographic location, this port allows direct shipping between Taiwan and mainland China as well as convenient shipment of imports and exports by sea or air;
- Taichung Port FTZ acts as a repackaging and distribution center, regional re-export processing center and a logistics support center that value add to the goods;
- This port is suitable for multinational businesses which are involved in warehousing and logistics.
Taipei Port Free Trade Zone
- Taipei Port FTZ encompasses an area of 79 hectares and is situated near to both Taipei and Taoyuan International Airport, allowing businesses to gain easy access to materials and export routes;
- There are plans to develop the large container terminal, bulk center and oil storage center for the purpose of offshore logistics warehousing, hydrophilic recreation, recreational shipping and logistics center development;
- This port is suitable for businesses that involve automobile logistics and chemical oils.
Taoyuan Air Cargo Park Free Trade Zone
- Taoyuan Air Cargo Park FTZ is located on the edge of the Taoyuan International Airport, the country’s main airport and the closest to the capital, Taipei;
- The FTZ’s main area consists of air cargo stations, storage buildings, value add parks, logistics centers and operation centers;
- This free trade zone is most commonly used for high value add electronic components and IT industries.
Suao Port Free Trade Zone
- The Ministry of Transportation and Communications approved Suao Port Free Trade Zone to become Taiwan’s sixth FTZ on September 13, 2010;
- The port covers a total area of 71.5 hectares and possesses three general yards, one container yard and two logistic zones;
- The FTZ is expected to become a green industry cluster, and combine multiple areas outside the region as well as develop links with surrounding industrial parks;
- This free trade zone is most commonly used for green energy industries.
Anping Port Free Trade Zone
- An-ping Port was approved to become a free trade zone on August 20, 2013 and the port has an area of 72.1 hectares;
- This free zone allows the creation of incessant production advantage and shorten the goods supply time while saving transportation cost through the implementation of ‘front store back factory’;
- There is also an accessible transportation and it is located near various industrial zones and Tainan Airport.