Taiwan has long been known as one of the most business-friendly countries in Asia. With its highly educated population, competitive manufacturing sector, and proximity to major Asian markets, it’s no wonder many businesses are choosing to set up shop here.
Moreover, Taiwan has also made remarkable strides in protecting intellectual property. It has motivated businesses to promote creativity and innovation, making it an ideal place for startups to grow and thrive.
However, that’s not all. Here are a few more compelling reasons businesses are registering companies in Taiwan.
- Taiwan’s Favorable Government Policies:
Most countries do not allow foreign investors to own a company 100%. But the Taiwanese government puts no such restrictions. You can easily set up an LLC with only one shareholder and a director. Both the partners don’t even have to be Taiwanese residents.
Plus, no minimum capital investment is required, making it easier to start your business with limited capital. It is also possible to set up a representative branch here with a foreign entity. It means you don’t need to incorporate a new company at all.
The government wisely invests in and promotes grant opportunities, some of which are available to foreigners. The Taipei Municipal Self-Government Ordinance for Industrial Development Conference workshop is an excellent example.
- Taiwan has an Exceptional Toolbox:
What do you need to start a business? Taiwan has you covered. From favorable tax rates to excellent infrastructure, the country offers all the tools startups need to succeed. You can even find a serviced office rental in one of the top business hubs easily.
It is easy to hire employees in Taiwan, as the recruiting process is simple. A talent pool of highly educated and experienced professionals is ready to be tapped. Plus, many are bilingual in English and Mandarin Chinese, providing a valuable asset to any business seeking an international audience.
- A Thriving Ecosystem:
Taiwan is blooming with startups and entrepreneurs. It provides an invaluable opportunity to tap into a community of like-minded individuals that can offer support and resources. For instance, the Taiwan Startup Stadium and the Taipei Business Incubator Association are two of the many networks that provide valuable resources to budding entrepreneurs.
Taiwan also has a strong venture capital sector, with numerous angel investors and venture capitalists ready to back innovative ideas. If you have a great idea, you can easily find the funding to get it off the ground.
- A Strong Domestic Market:
It means businesses can focus on the domestic market and reap big rewards. According to a report by Forbes, Taiwan has a more substantial purchasing power when compared to Japan and South Korea. The only two countries with higher purchasing power are Singapore and Hong Kong.
Regarding population, Taiwan is one of the largest countries in the world. It also has one of the highest population densities, making it easier to target a wider audience. So, if you want to create a successful business that reaches consumers in Asia, Taiwan is the place to be.
- Skilled Labor Force:
Taiwan has a reputation for its unmatched education system. In terms of quality, its universities are higher than many Western countries. The country produces a highly skilled labor force that can work efficiently, which makes it more cost-effective.
Moreover, the labor participation rate of 59.2% is much higher than many of its competitors. 36% of these Taiwanese work in the industrial sector. It means businesses can easily find the personnel they need for their operations.
And, since the country is an economic hub, English is widely spoken. It makes it easier for foreign companies to find suitable employees who can communicate in English.
- Opportunity to Tap New Markets:
Despite its rising tension with Taiwan, Mainland China is a potential market that cannot be overlooked. Recently, the two sides have taken a few steps towards increased cooperation. As a result, businesses in Taiwan can access the Mainland market much more easily.
Taiwan is also an excellent gateway to other Asian countries. It has strong ties with countries such as Japan, Vietnam, and South Korea. As a result, businesses that base themselves in Taiwan will have access to these markets more conveniently.
Moreover, the US-Taiwan Trade and Investment Framework Agreement (TIFA) has opened up further opportunities. It is an agreement allowing businesses to access the US market, a massive boon for Taiwanese companies.
- Agreeable Environmental Factors:
Taiwan is a highly livable country with an agreeable climate and a wealth of natural beauty. It means that businesses can attract talented professionals from across the world.
Moreover, Taiwan is renowned for its low crime rate and the strict rule of law. It makes it a safe place to do business and provides an added layer of protection for entrepreneurs.
Regarding the cost of living, Taiwan is a much more affordable place compared to countries such as Japan and South Korea. Entrepreneurs can run their businesses more efficiently without worrying about sky-high expenses.
- A Potent Legal System:
Security concerns are always a priority for businesses. After all, there are many legal risks when setting up a business in a foreign country. Fortunately, Taiwan has an incredibly efficient judicial system with reliable laws and regulations to protect your business from any vulnerability. The Intellectual Property and Commercial Court Organization Act helps safeguard businesses from copyright infringement and other fraudulent activities.
In addition, strict tax rules protect businesses from being overburdened. Companies are charged a flat rate of 20% on their income, and the government runs various incentives to encourage business growth. It also reflects well on the company’s credibility and transparency. Not to mention, the tax rate is considerably low when compared to countries like the US and UK.
- Presence of Free Trade Zones:
Taiwan has various free trade zones that help business owners expand their operations. These offer tax incentives and one-stop services to facilitate businesses. The Kaohsiung Export Processing Zone is the most renowned one, but there are many other zones in the country.
They also provide valuable resources to help entrepreneurs with their operations. Resources such as warehousing, banking services, and insurance can get expensive in other countries but are much more affordable in Taiwan.
In short, Taiwan is an ideal destination for entrepreneurs and startups to launch their businesses. With a favorable environment, the country provides all the necessary resources to help your business reach its full potential. Plus, the geographic location makes it the perfect launching pad for companies that want to enter the Asian market. So, if you’re looking to launch your business in a stable and business-friendly environment, Taiwan is the place to be.