Taiwan free zones

Taiwan free zones

    free zone company registration in Taiwan
  1. Taiwan Free zone companies are a gift for foreign companies who intend to enter the APAC region, with reduced corporate tax rates. With its strategic location, Taiwan has easy access by air and sea to Hong Kong, mainland China, Japan and ASEAN countries;
  2. Taiwan currently boasts several free zones including: Taipei port free trade zone (FTZ), Taichung port FTZ, Kaohsiung port FTZ, Keelung port FTZ, and Far Glory FTZ;
  3. Goods transported from an overseas FTZ into a Taiwanese FTZ shall be exempted from customs duty, commodity tax, business tax, and harbour service dues;
  4. Self-management is applied to businesses in FTZs, with goods being free from inspection, testing, and escorting;
  5. Companies must rent a physical space within the free zones, usually in the form of warehousing or manufacturing space;
  6. Strict regulations regarding entry permits may cause delays and inconvenience for individuals who want to enter Taiwan free zones;
  7. There are strict regulations regarding employment of foreign workers in Taiwan, so investors may find it challenging to hire foreigners following Taiwan company formation.

Comparison between the different Taiwan trade free zones

Summary at a GlanceTaipei Port FTZTaichung Port FTZKaohsiung Port FTZKeelung Port FTZ
Average annual Industrial space rent per 1000 sqmUS$52,000US$44,000US$35,000US$25,000 – US$32,000
How long to set the company up?5 weeks5 weeks5 weeks5 weeks
How long to open company bank account?2 weeks2 weeks2 weeks2 weeks
Quality of UtilitiesVery goodExcellentVery goodFair
Allowed to sign sales contracts with Taiwanese Clients?YesYesYesYes
Allowed to invoice Taiwanese Clients?YesYesYesYes
Corporate tax payable in TaiwanDependent on activityDependent on activityDependent on activityDependent on activity
Corporate bank accountSCB or HSBCSCB or HSBCSCB or HSBCSCB or HSBC
Physical office space requiredYesYesYesYes
Industrial space availabilityLimitedManyManyLimited
Allowed to import raw materials?YesYesYesYes
Allowed to export goods?YesYesYesYes
Wholly foreign ownedYesYesYesYes
Can the entity hire expatriate staff in Taiwan?YesYesYesYes
Do you visit Taiwan for company incorporation?YesYesYesYes
Minimum number of directors1111
Minimum number of shareholders1111
Tax registration certificate requiredYesYesYesYes
Individual shareholders allowedYesYesYesYes
Corporate shareholders allowedYesYesYesYes
Corporate director(s) allowedYesYesYesYes
Public register of shareholders and directorsYesYesYesYes
LLC company allowedYesYesYesYes
Can apply for immigration visasYesYesYesYes
Annual audited financial statementsYesYesYesYes

Taipei port FTZ

  1. Taipei Port FTZ is located near to both Taipei and Taoyuan International Airport, giving businesses established there easy access to materials and export routes. The free trade zone covers an area of 79 hectares;
  2. This free zone invites multinationals from the business sectors of automobile logistics and chemical oils.

Taichung port FTZ

  1. Taichung Port FTZ has a total area of 536 hectares;
  2. This free zone is situated between important industrial points such as the Shanghai-Hong Kong shipping route, Taichung Airport, and the harbors of Mainland China. The location enables direct shipping between Taiwan and mainland China as well as convenient shipment of imports and exports by sea or air;
  3. This free zone focuses primarily on multinational businesses involved in warehousing and logistics.

Kaohsiung port FTZ

  1. Kaohsiung Port FTZ is located in Southern Taiwan, occupying 415 hectares of space. This free zone has convenient land transportation links to nearby industrial areas including Tainan City, Tainan County, Kaohsiung, and Pingtung County;
  2. Kaohsiung Port is a cluster for steel shipping, shipbuilding and biotechnology businesses.

Keelung port FTZ

  1. Keelung Port FTZ is close to Taipei and other industrial parks in Dawulun, Ruifang and Lindu;
  2. Logistics, assembly, packaging, freight forwarding and transport are prevalent across Keelung’s free port area.

Contact us

For additional information on our free zones services in Taiwan, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi
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