Taiwan is increasingly becoming a good place to do business in the Asia Pacific region. With its tremendous infrastructure, advantageous geographical position, highly skilled workforce and sound regulations, Taiwan is a great place for companies wanting to expand to the Asian market. Let us explore the various advantages of setting up a business in Taiwan, as well as the considerations that need to be made before you choose to set up your business on the island.
Advantages of Registering a Company in Taiwan
Taiwan continues to invest heavily in transportation improvements, digitalization, green energy developments, water improvements as well as urban and rural development. The government of Taiwan places a high level of importance on the development of both digital and physical infrastructure.
Taiwan has a comprehensive transportation system. Their comprehensive network consists of 17 airports, of which 4 are international, as well as 7 international harbors. Additionally, the network includes a railway system across the island, a west coast high speed rail line and metro systems in Taipei and Kaohsiung.
The Taiwan government has also increased efforts to become an artificial intelligence (AI) research and development (R&D) hub. An AI business park is set to be opened in the Hsinchu County, located just over an hour out of Taipei. The business park will be more than 125,000 square meters, near one of the current major high-tech zones.
Taiwan is geographically located in the center of the Asia Pacific region connecting North and South East Asia. Travel time from Taipei to major cities in Asia, such as Shanghai, Tokyo, Hong Kong, Singapore and Seoul, is under 3 hours by flight. Due to its central and convenient location, many multinationals choose Taiwan as their Asia-Pacific headquarters. Taiwan is also an essential hub for shipments and transshipments in the Asia-pacific and East Asia regions. It takes a mere 53 hours for cargo ships to travel to 4 of the aforementioned cities. As such, Taiwan is an important link to international supply chains.
Taiwan’s Highly Skilled Workforce
Taiwan has an extremely high literacy rate, with 98.5% of the population over the age of 15 years old being able to read and write. Taiwan also has an abundance of tech savvy engineers, due to high-tech manufacturing being the main industry on the island. These engineers are capable and may be cheaper than in other countries, which is a very attractive prospect to those corporations wanting to setup on the island.
Taiwan Regulations and Policies
From a policy and legal standpoint, Taiwan has a developed framework which affords a great deal of protection in terms of foreign investment. Commercial regulations are often adjusted in accordance with international standards and norms, affording foreign investors substantial protection and recourse. The framework offers foreign companies considerable stability if they choose to set up in Taiwan. The government has also attributed a high level of importance to intellectual property rights in an effort to safeguard R&D and innovations of businesses.
Intellectual property rights in Taiwan have been revised in accordance with international intellectual property law standards. Taiwan continually aims to develop and strengthen the quality of trademark and patent application processes as well as of their review processes. Furthermore, Taiwan has established a court dedicated to adjudicating intellectual property matters and a special task force dedicated to investigating matters of counterfeiting and piracy.
Considerations for Registering a Company in Taiwan
Asia has experienced immense economic growth over the past 2 decades, mainly due to the positioning, ease of doing business and affordability of producing goods and hiring labor. It is important for businesses to establish their Asian presence strategically and ensure that they consider all legal, economic and political factors. Taiwan has established itself as a stable, business friendly environment, which offers businesses considerable protection, while maintaining a relative ease of doing business.