Taiwan is an island settled on the western side of the Pacific Ocean. It is a part of the Republic of China in East Asia. It is a highly technologically developed country. Setting up a business in Taiwan has its own advantages and disadvantages.
This article highlights the business environment and business-related resources available in Taiwan. Also, it states about government policies applied in Taiwan related to business.
|Benefits of Doing Business in Taiwan||The Drawbacks of Doing Business in Taiwan|
|Gender equality||High working hours|
|High Population||Strict Dress Code|
Advantages of Doing Business in Taiwan
- Attractive Tax policies:
The government has set business-friendly tax policies. This attracts a high amount of foreign business leaders to start their business in the country. Moreover, 100% of foreign business companies can be established in the country.
Foreign companies usually register with limited liability company (LLC). This policy allows the company to run with one shareholder and one director who can be a non-country resident.
- Stable economy:
Taiwan has a stable and investment-friendly economy and this attracts plenty of foreign investors to the country. The GDP of Taiwan is 600 billion USD and is predicted to reach 615 billion USD by the end of 2020.
The growth as well as a stable economic graph of Taiwan makes more foreign investors invest in the country.
Taiwan is well known for its incredible technology and modern development. The telecommunication department, the transport department is highly advanced and makes Taiwan work at a great amount of speed.
The technical skills are in high demand in the country. Business startups are boosted by a highly connected market if proper strategies are used. Modern-day infrastructure facilities make the processes faster and easier.
Taiwan has 7 international harbors and 14 airports which makes the foreign business owners powerful in terms of transportation.
- High education:
Taiwan is highly known for producing young skillful minds every year. It produces 30000 young graduates every year who are highly skilled and hard workers. The business succeeds with high technical skills and proper strategies that are provided by this skillful workforce.
This makes foreign business leaders more affluent in working with the workforce. Workforce quality is highly remarkable.
- Industrial Club:
Industries are highly connected as well as competitive which makes the development at a faster rate.
This makes the economy boost at a higher level. Scientific researchers to Business management agencies connect with large networks in the country. It stands true for Taiwan that the network is your net worth.
Disadvantages of Doing Business in Taiwan
- Starting with business:
In Taiwan, business startups experience a lot of difficulties. The online processes are time-consuming. The corporate taxes are high and consume additional time for payment.
After registration, there are multiple inspections by different government departments. After the auditing process completes, you need to provide adequate assurance of invested capital in the company for a decent startup. This whole process takes 150 days which is higher according to OECD.
The high corruption rate in Taiwan makes it tougher for startup companies and small businesses to thrive in the market. The Judiciary department fails to govern a healthy business environment in the country. However, it ranks on 28th among 180 countries.
- Construction Pains:
Construction permit consumes a great amount of time. However, there is an improvement in the condition for the past few years. The World Bank and IFC increased the score of Taiwan by 67 points.
However, construction permission still requires 57 days and after the legal documents are prepared, the technical and mechanical structuring takes an extended period of time.
- Getting electricity:
The company should register and apply for the power connection in the Taiwan Power Company (TPC). It takes up to 24 days after the application is granted to the plugin for the electronic meter in the company.
The wiring process takes less time as compared to the granting of an application for electricity. TPC conducts inspections one or multiple times for approval of the application of the respective company. This process takes plenty of time for the company.
- Registration for the company:
The registration process takes less time but is highly expensive. Registering process completes within a week, usually. The cost is higher according to the OECD average and norms of East Asia and the Pacific region.
The advance subscription cost payment grabs plenty of time as it is required to grant payment at different departments of the government. Property rights should be appropriately researched well before registration as it can lead to insolvency in the future.
Taiwan is a highly cultural-based country. The country citizens are given more opportunities in any sector than foreign citizens. This leads to an unhealthy business environment.
It causes emotional hurt to employees. This dominates inter rivalry among the coworkers. This makes the development and growth unequal.
- Paying taxes:
The tax payment procedure is quite lengthy and requires up to 221 hours per year. However, taxes are low but require a deep study before payment.
- Trading across the border:
The border crossing trade requires a lot of time which leads to weak export and import conditions. The legal procedures take plenty of time for approval. This causes a major delay in exports as well as imports. However, conditions are getting better and the government is focusing on foreign business policies.
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