DOING BUSINESS IN TAIWAN IN 2024
Since 2003, Healy Consultants Group has been efficiently and effectively assisting our Clients with i) Taiwan business registration ii) business licensing iii) Taiwan corporate banking solutions iv) visa options and staff recruitment strategies and v) workspace rental solutions.
| Compare different Taiwan entities | LLC | Fast setup solution | Free zone LLC | PLC | RO | Branch |
|---|---|---|---|---|---|---|
| Best use of company? | All products and services | Close client deal now | Manuf/ export trading | To get pub. funding | Marketing & research | Specific projects |
| How soon to invoice Clients? | 7 weeks | 2 weeks | 8 weeks | 3 months | NA | 7 weeks |
| How soon can you hire staff? | 7 weeks | 2 weeks | 8 weeks | 3 months | NA | 7 weeks |
| How soon can you sign a lease agreement? | Immediately | Immediately | Immediately | Immediately | Immediately | Immediately |
| How long to supply corporate bank a/c? | 4 weeks | 2 weeks | 4 weeks | 4 weeks | 4 weeks | 4 weeks |
| How long to supply co. reg / tax numbers? | 9 weeks | 2 weeks | 10 weeks | 3 months | 2 months | 9 weeks |
| Corporate tax rate on annual profit? | 20% | 20% | 20% | 20% | NA | 20% |
| Limited liability entity? | Yes | Yes | Yes | Yes | No | No |
| Government grants available? | Yes | Yes | Yes | Yes | No | Yes |
| Govt approval required for foreign owners? | Yes | Yes | Yes | Yes | Yes | Yes |
| Res. director/partner/ legal rep. required? | No | No | No | No | Yes | Yes |
| Recommended min. paid up share capital? | US$3,300 | US$3,300 | US$200,000 | US$50,000 | NA | NA |
| Can bid for Government contracts? | Yes | Yes | Yes | Yes | No | Yes |
| Corporate bank account location? | Citibank | Bank of East Asia | HSBC | Standard Chartered | Citibank | Standard Chartered |
| Can secure trade finance? | Yes | Yes | Yes | Yes | No | Yes |
| VAT payable on sales to local customers? | 5% | 5% | 5% | 5% | None | 5% |
| Average total business set up costs? | US$17,690 | US$28,255 | US$18,390 | US$18,840 | US$16,040 | US$16,040 |
| Average total engagement period? | 3 months | 3 months | 3 months | 3 months | 3 months | 3 months |
| Accounting and tax considerations | LLC | Fast setup solution | Free zone LLC | PLC | RO | Branch |
|---|---|---|---|---|---|---|
| Statutory corporate tax payable? | 20% | 20% | 0% | 20% | NA | 20% |
| Legally tax exempt if properly structured? | No | No | No | No | Yes | No |
| Group HQ tax incentives? | No | No | No | No | No | No |
| Must file an annual tax return? | Yes | Yes | Yes | Yes | No | Yes |
| Must file annual financial statements? | Yes | Yes | Yes | Yes | No | Yes |
| Must appoint an auditor? | No | No | No | Yes | No | No |
| Access to double taxation treaties? | Yes | Yes | Yes | Yes | No | Yes |
| WH tax on payments to foreign s/holders? | 21% | 21% | 21% | 21% | NA | NA |
| Company Registration | LLC | Fast setup solution | Free zone LLC | PLC | RO | Branch |
| Res. director/partner/ legal rep. required? | No | No | No | No | No | No |
| Min. number of shareholders/partners? | 1 | 1 | 1 | 1 | Parent company | Parent company |
| Minimum number of directors/managers? | 1 | 1 | 1 | 3 | 1 | 1 |
| Maximum shareholding for foreigners? | 100% | 100% | 100% | 100% | 100% | 100% |
| Shelf companies available? | Yes | Yes | Yes | No | No | No |
| Time to incorporate a new entity? | 7 weeks | 2 weeks | 8 weeks | 3 months | NA | 7 weeks |
| Can easily convert to a PLC? | Yes | Yes | Yes | Yes | No | No |
| Can have preference shareholders? | Yes | Yes | Yes | Yes | No | No |
| Business Considerations | LLC | Fast setup solution | Free zone LLC | PLC | RO | Branch |
| Good entity for trademark registration? | Yes | Yes | Yes | Yes | No | No |
| Can secure an import and export license? | Yes | Yes | Yes | Yes | No | Yes |
| Sponsorship by a local citizen required? | No |
| Our Client must travel to Taiwan? | Yes |
| Temp. physical office solutions available? | Yes |
| You need local resident as bank signatory? | No |
| Can be wholly foreign owned? | Yes |
| The entity will likely be regulated by? | Ministry of Economic Affairs (MOEA) |
| Monthly VAT reporting to the Government? | No |
| Sign office lease during incorporation? | Yes |
| Public register of s/holders and directors? | Yes |
| Security deposit kept with government? | No |
| S/holder/director docs attested/translated? | Yes |
| Foreign director needs personal tax no.? | No |
| Foreign director needs a residence visa? | No |
| Maximum number of staff allowed? | No |
| Expatriate to local staff ratio? | None |
| Residence visa for business owner? | Yes |
| Other useful information | |
| Taiwan has signed free trade agreements? | Yes |
| This country is a member of TRIPS? | Yes |
| This country is a member of the ICSID? | No |
| Average custom duties suffered? | 4.23% |
| Govt foreign investment approval required? | Yes |
| Average monthly office rent? (US$/sq m) | US$20 |
| Minimum statutory monthly salary? | US$700 |
| Average US$ salary for local skilled staff? | US$3,000 |
| US$ deposit interest rate? (1 year average) | 1.05% |
| Overseas remittance currency controls? | Yes |
| Banking considerations | |
| Multi-currency bank accounts available? | Yes |
| Corporate visa debit cards available? | Yes |
| Quality of e-banking platform? | Good |
| Crowd funding available in this country? | Yes |
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