Entrepreneurs often consider making investments in countries where they can easily reach the markets of other surrounding countries. Taiwan, an island nation in East Asia, has developed infrastructure and transportation systems that facilitate trade and connectivity within the nation and with neighboring nations.
Entrepreneurs wishing to market their products and services abroad may want to think about forming a company in Taiwan due to this reason.
Taiwan is renowned for its highly skilled workforce, excellent infrastructure, and free trade zones. Taiwan’s population of 23.6 million people gives firms access to highly educated and talented workers. This is one of the primary benefits of registering a business in Taiwan.
The numerous advantages of registering a company in Taiwan will be briefly listed in this article.
Numerous advantages of registering a company in Taiwan
Taiwan’s strategic position, favorable tax laws, intellectual property safeguards, trained labor force, developed infrastructural facilities, and simple business procedures are just a few of the many advantages of setting up a firm there.
Here are the benefits of registering a business in Taiwan:
1. The Simplicity of Conducting Business
- One of the advantages of registering a company in Taiwan is the simplicity with which business can be carried out in the nation.
- Taiwan has been classified in the 15th spot in the world bank’s 2019 ease of doing business score. It is pretty simple to start a company in Taiwan as the company establishment procedure may also be completed online.
- There aren’t any capital restrictions for starting a corporation in Taiwan and its directors are not subject to residency or nationality restrictions.
- In Taiwan, a corporation can be created with at least one stockholder and one director.
- The government of Taiwan permits foreigners to control 100 percent of their businesses in the nation.
2. Developed Transportation and Infrastructures
- Another one of the benefits of registering a business in Taiwan is its advanced transportation and infrastructure.
- The development of the country’s physical and technological infrastructure has received significant attention from the Taiwanese government.
- Taiwan continues to make significant investments in digitization, renewable technology, as well as transportation upgrades.
- Taiwan has a robust transportation network which includes 4 internationally connected airports, 17 domestic airports, and 7 global harbors.
- Moreover, Taiwan serves as a crucial gateway for shipments in the East Asian and Asia-Pacific areas. As a result, companies might have more possibilities for trading and investing.
3. Extremely Qualified Workers
- One of the major advantages of registering a company in Taiwan is the nation’s extremely qualified and trained workers.
- An estimated 45 percent of citizens in Taiwan between the ages of 25 and 64 have completed some form of college there. This could prove to be beneficial for business owners trying to employ qualified personnel in the country.
- Taiwan is a desirable location for high-tech businesses due to its reputation for competence in technological development and research.
- Due to high-tech manufacturing being the dominant industry in Taiwan, the nation also possesses a large population of technologically competent engineers.
4. Ease of Accessing Markets
- Taiwan is situated at the geographic center of Asia-Pacific and gives companies entrance to the marketplaces of China and the neighboring Asian nations which is another one of the major advantages of registering a company in Taiwan.
- Taiwan’s well-developed transportation and infrastructure connectivity makes it simple for companies to reach the markets of the neighboring countries.
- Furthermore, due to Taiwan’s proximity to the east and west, traveling by air or sea to both China as well as the Western pacific doesn’t require a great deal of time.
- Taiwan is a great place to begin a firm for entrepreneurs who are looking to market their goods overseas.
5. Free Trade Zones (FTZ)
- Presently, seven free trade zones exist in Taiwan which is one of the primary benefits of registering a business in Taiwan.
- The purpose of Taiwan’s free trade zones is to promote the incorporation of new businesses as well as create a favorable atmosphere to facilitate commercial operations in particular sectors.
- The free trade zones in Taiwan provide newly established businesses with many perks, like tax breaks, a robust infrastructure, simplicity of carrying out commercial operations, and various financial assistance and subsidies.
- Businesses establishing facilities in the FTZs will be permitted to bring in supplies and equipment without having to pay specific taxes including VAT, customs duties, and commodity taxes.
6. Tax Incentives
- The government of Taiwan vigorously supports tax breaks for businesses that intend to operate in places like research areas, export processing areas, and FTZs.
- A corporation or limited partnership may claim a tax credit of 15% of research and development (R&D) expenses made in a single year or a tax credit of 10% throughout 3 years if they have not violated ecological preservation, labor, or food hygiene and security regulations.
- A maximum of 30% of the existing-years profit-seeking business income tax is allowed as a tax credit for R&D, which is deducted from payments for the present year.
7. Effective Intellectual Property Protection
- The regulations governing intellectual property in Taiwan are fair and clear which is another one of the benefits of registering a business in Taiwan.
- Taiwan has a well-developed policy and legal structure that offers significant support for international investment. International rules and conventions are frequently incorporated into commercial rules, giving overseas investors significant security.
- If international businesses decide to establish themselves in Taiwan, the structure provides them with significant security. In an attempt to protect commercial R&D and inventions, the government has likewise put a great deal of emphasis on intellectual property rights.
- Taiwan’s intellectual property rules have been updated in conformity with worldwide norms for intellectual property legislation.
- The government has constantly developed regulations and undertaken steps to safeguard innovations and promote original inventions in order to enhance the framework and atmosphere for IP ownership.
- Taiwan is constantly working to improve the standards of both the assessment and application methods for patents and trademarks.
- Additionally, Taiwan has set up a judiciary specifically for handling intellectual property disputes and a specialized task group for looking into cases of theft and imitation.
8. Several Industrial Clusters
- Taiwan is home to several industrial clusters that create a variety of manufactured items which is another one of the benefits of registering a company in Taiwan.
- The efficiency of Taiwan’s manufacturing sector is boosted by all the various industrial zones there.
- The existence of industrial clusters guarantees that industrial enterprises maintain a sufficient level of competitiveness in terms of the technology and equipment utilized for manufacturing as well as the standard and number of products generated.
For companies wishing to expand into East Asia, Taiwan has many benefits. Companies looking to grow their activities in the area find it to be an appealing destination due to its advantageous location, free trade zones, tax incentives, transport networks, industrial clusters, and the simplicity of doing business.
The Taiwanese government has also put in place a number of policies, such as allowing foreigners to hold 100% of Taiwanese businesses, promoting investment, fostering innovation, and lowering administrative barriers, making it simpler for businesses to establish themselves and run their operations there.
If you are looking to set up your firm in Taiwan, you can get in touch with our experts at ODINT Consulting. Your application for registration will be assisted by our professionals, who will also help you collect the required paperwork.
The advantages of registering a company in Taiwan cover its advantageous location, free trade zones, tax breaks, transportation systems, industrial clusters, and ease of doing business are among its advantages.
It is relatively simple to form a business in Taiwan as there are no capital requirements. Also, there are no limitations for directors’ nationality or residence. Moreover, corporations in Taiwan are formed with a lower limit of one stockholder and one director.
Yes, foreigners can set up businesses in Taiwan. The government of Taiwan authorizes foreign nationals to fully own and operate all of their businesses there.
- To improve the framework and environment for IP ownership, the government has continuously enacted rules and taken actions to defend innovations and encourage original ideas.
- Taiwan is always looking to raise the bar for the evaluation and application processes for patents and trademarks.
- Taiwan has also established a legal system expressly for managing disputes over intellectual property and a specialist task force for investigating theft and copying cases.
In Taiwan, the free trade zones provide newly established enterprises with many benefits, including tax cuts, a strong infrastructure, a simple way to conduct commercial operations, and other financial help and subsidies. Companies that are incorporated in the FTZs will be able to import goods and machinery without having to pay particular taxes like VAT, customs charges, and commodities taxes.