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 may impact some industries, but are not an issue for the majority of companies ** Good choice for most sectors**

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

(-) Excessive and inconsistent regulations
(-) SOE influence in utilities, finance, and real estate
(-) Rising tensions with Beijing increase geopolitical risk and create challenges in some industries

Highlights:

– Ranked #15 globally on Ease of Doing Business index
– Highly productive workforce with lower labor, rent, and cost of living than other top Asian regions
– Global hub for high tech manufacturing, especially in the semiconductor industry
– Friendly and easy location to live and work

"An export-dependent economy of 23 million people with a highly skilled workforce, Taiwan is also a critical link in global supply chains, a central hub for shipments and transshipments in East Asia, and a major center for advanced R&D.”

US State Department, 2021

Country Facts:

Population:

23.8 million; 0.18% growth in 2020

GDP:

$759.1 billion USD; 3.11% growth in 2020

GNI per capita:

E-Commerce

$27,758 USD; -0.17% inflation in 2020; high-income region

$8.6 billion USD in 2020; growing at 16.2%

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

$33.4K USD

#38/100

46% NYC Prices

Ease of Doing Business

Corruption Perceptions Index

Human Capital Index

Working Age Population

GDP Per Capita

English Language Capabilities

Cost of Living Plus Rent Index

Marketing:

Per capita expenditure:

$11,965 USD

Internet penetration:

90%

Shop online:

81%

Mobile ownership:

121%

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 can help sell products, establish links with local partners, conduct market research, and otherwise assist foreign companies.