5 DOS AND DONT'S OF STARTING A BUSINESS IN TAIWAN
The Dos and Dont's of Starting a Business
in Taiwan.
Do
1) Know
the different business entities
Inform
yourself on the subtle differences of each type of business entity. You might
prefer a Company Limited by Shares if you wish your company to go public, or a
Company Limited Liability if you wish to remain the owner of it.
2) Know
your rights with banks
Be well
prepared and know your rights as a foreigner it comes to things like credit
cards, loans, etc.. Some bankers will close the door, saying that the law
doesn't allow them to lend money to foreigners, but that is false. Be
persistent, and keep smiling!
3) Learn Mandarin Chinese
Speaking fluent Chinese is not mandatory
to doing business in Taiwan, and many foreign entrepreneurs do not master the
language. But knowing at least some conversational Chinese will help you in all
kinds of situations. Moreover, it'll open doors that may not be available if
you can't speak Chinese. The government is striving to provide English
information and documentation for foreign entrepreneurs in Taiwan, yet the
process is on-going. Most Taiwanese do not speak adequate English. And most
information and documentation is still only available in Chinese.
4) Write everything
Ensure that all your agreements and/or
contracts with landlords / suppliers / customers / employees / etc. are in
writing, and are clear and unambiguous.
5) Network
Keep in contact with other foreign (and
local) entrepreneurs through different community groups, forums or events, such
as chambers of commerce or the Taiwanease entrepreneurs group,
Taiwantrepreneurs. You are not alone!
Don’t
1) Avoid Taiwan-China discussion
Have a sensitive and potentially
embarrassing political discussion with your Taiwanese partner or customer about
Taiwan’s politics, particularly when it comes to China and party politics.
2) Begin your business without a
sufficient amount of capital
This is not necessarily a legal
requirement, but comes down to what you actually need to run your business. On
paper, Taiwanese law allows you to establish a company without any capital
(depending on the nature of your business, a Certified Public Accountant (CPA)
will at least require some amount of capital; for instance, NT$20,000 isn't
acceptable if you wish to build a nuclear plant), yet you should think about
invest enough starting capital to run your daily business.
3) Ignore all the administrative rules and
regulations
Retain some knowledge, and do not
completely rely on your CPA or lawyer, as s/he may not necessarily be familiar
with all the rules and regulations relating to foreigners. Also, some expenses
can be avoided, for example, to register a trademark. If you educate and inform
yourself, it may be that you can register your trademark without the expense of
hiring a lawyer to help with the job.
4) Only target foreigners living in Taiwan
The market may be too small, and the great
majority of foreign residents are factory workers (over 75% of the 475,000
foreign residents). Having said this, many successful Taiwan-based
foreign-owned companies have successfully targeted foreigners only; eg. Some
websites and restaurants.
5) Flout Taiwan's immigration rules
If you get into any trouble, you could be
kicked out of the country, and all your hard work will be wasted. Consult the
Bureau of Immigration if you have any question.
