South Korea Flag Country Profile

Taiwan Business Profile

Recommendations:

The island of Taiwan is an excellent destination for foreign investment, especially for companies seeking skilled labor and advanced infrastructure at more reasonable costs than Korea, Japan, or Singapore. Geopolitical factors shape some industries, but make little difference to most foreign companies. ** Good choice for most businesses**

(+) Established trade and investment ties to US
(+) Government incentivizes foreign investment
(+) Educated, skilled workforce with more lower cost of skilled labor than other advanced Asian economies

(-) Excessive and inconsistent regulations
(-) SOE influence in utilities, finance, and real estate
(-) Tensions with Beijing can create certain challenges for firms with mainland China ownership, but not for most companies

Highlights:

– Ranked #15 globally on Ease of Doing Business rankings and #5 on Human Capital Index
– Highly productive workforce with lower labor, rent, and cost of living than other top Asian regions
– Global hub for high tech manufacturing
– Friendly and easy location to live and work

"The government will continue to adopt even more open measures, open up diverse financial products, expand the scope of our wealth management business, and let Taiwan become an Asian corporate financing center and high level asset management center.”

Tsai Ing-wen , 2020

Country Facts:

Population:

24 million, 0.18% growth in 2019

GDP:

$605 billion USD, 4.42 % growth in 2019

GNI per capita:

$27,758 USD, 0.55% Inflation, high income region

Industries:

Manufacturing (microchips, electronics, textiles, pharmaceuticals), steel, cement, information technology, petroleum refining, agriculture, fishing, advanced research and development

Tourism:

#37 of 140 in WEF’s Tourism Competitiveness Report

Investment:

Government encourages and supports foreign investment

#15/190

#28/180

#5/196

17.1 M

$11.2K USD

#38/100

49% NYC Prices

Ease of Doing Business

Corruption Perceptions Index

Human Capital Index

Working Age Population

Household Expenditure Per Capita

English Language Capabilities

Cost of Living Plus Rent Index

#15/190

#28/180

#5/196

17.1 M

$11.2K USD

#38/100

49% NYC Prices

Marketing:

Per capita expenditure:

$11,197 USD

Internet penetration:

86%

Shop online:

80%

Mobile ownership:

119%

Primary messaging:

Line messaging app

Primary website:

Facebook, Youtube

Average Labor:

Infrastructure:

Opening a Business:

Relevant Laws:

Statute For Investment By Foreign Nationals (1960), Negative List for Investment by Overseas Chinese and Foreign Nationals (2018), Foreign Talent Retention Act

Time to Incorporate:

Approximately 10 days to incorporate

Fees to Incorporate:

Approximately $400 USD, not including accounting fees

Paid in Capital:

No minimum

Remittance Taxes:

No bilateral taxation treaty with the US, but six countries including Singapore have FTAs. Foreign companies managed in Taiwan pay according to local corporate tax laws.

Restrictions:

100% foreign ownership allowed; some sectors restricted for foreigners including certain chemicals, weapons, certain tourism & travel services, and agricultural services

Trends:

Already very easy, but Taiwanese Government is further incentivizing foreign investment

BBA Services:

BBA works with a trusted partner in Taipei, and is in the process of establishing a local office. BBA can help match you with local partners and assist in your incorporation and market research.