Success tips when doing business in Taiwan
- All businesses deal with government agencies on a regular basis, and foreigners doing business in Taiwan should exercise restraint and be patient as in the face of potentially extensive red tape, as authorities will always have the final say in administrative matters;
- When you’re starting a new business it’s important to find out which of Taiwan’s registrations and licenses apply to your firm’s Taiwan company incorporation, as licenses are issued at both the city and national levels;
- Exchanging of business cards is very important in Taiwan. You should bring a large supply as several hundred may be required for a short business trip;
- The Taiwanese place a lot of emphasis on being punctual. It is important that you arrive early to your appointments;
- The exchanging of gifts is widely practised in Taiwan. It is advisable that you prepare small gifts for your business appointments.
Interesting facts about Taiwan
- The official language of Taiwan is Mandarin. However, the 70% of the population who are ethnic Hoklo speak the Hokkien dialect of Min nan (Southern Min) Chinese as their mother tongue;
- Taiwan has a tropical climate, with a monsoonal rainy season from January through March. It is also a frequently affected by Pacific typhoons;
- Taiwan is a capitalist powerhouse, and a major exporter of electronics and other high-tech products. It had an estimated 5.2% growth rate in its GDP in 2011, despite the global economic downturn and weakened demand for consumer goods;
- The island was given the name “Formosa” (meaning “beautiful”) by the Portuguese in the 16th century when they first laid eyes on it;
- Taipei 101, also known as the Taipei Financial Center, was once the world’s tallest building. Now, however, larger buildings in the Middle East and elsewhere in Asia have relegated it outside of the global top 5;
- With more than 9,100 convenience stores in an area of 35,980 km2, Taiwan has Asia Pacific’s and perhaps the world’s highest density of convenience stores per person;
- Baseball is Taiwan’s most popular sport. NBA player Jeremy Lin is perhaps Taiwan’s most famous sporting export;
- Milk tea with tapioca pearls called ‘bubble tea’ or ‘boba’ originated in Taiwan in the 1980s and became a favourite Asian drink;
- In its 2014 World Competitiveness Yearbook, the IMD rated Taiwan as the world’s 13th most competitive economy. The ranking takes into account factors including economic performance, government efficiency, business efficiency and infrastructure, making Taiwan company registration an attractive option.
- Taiwan is one of the world’s largest producers of computing goods. The island nation has an extensive, well-established network of industrial zones and a growing number of high-technology industry clusters, which are supported by high-quality human resources;
- China has been Taiwan’s largest trade partner since 2003. In 2010, China accounted for over 29% of Taiwan’s total trade and 41.8% of Taiwan’s exports. Japan is Taiwan’s second-largest trading partner with 13.3% of total trade, representing 20.7% of Taiwan’s imports. The United States is now Taiwan’s third-largest trade partner, buying 11.5% of Taiwan’s exports and supplying 10.1% of its imports. The United States, Hong Kong, China, and Japan together account for 60% of Taiwan’s exports, and the United States, Japan, and China are responsible for almost 46% of Taiwan’s imports.
Frequently asked questions
What is the minimum number of directors required for a Taiwan company?Private limited companies in Taiwan require only one director. A public company needs three directors.
What is the minimum number of shareholders required for a Taiwan company?Only one shareholder is needed to start a limited company in Taiwan.
Is a Taiwan company required to submit an annual tax return and/or financial statements?Yes, a Taiwan company is required to submit audited financial statements annually.
How much tax does a Taiwan Company pay?Taiwanese companies pay corporate tax rate of 17% on all income generated in Taiwan. The Taiwan government has approved two tax cuts recently, reducing the tax rate from its former level of 25%. In addition a Taiwanese company is obliged to register for value added tax (VAT), which is levied at a rate of 5%.