Business

5 things to consider before launching a business in Taiwan



You’ve determined to stay and work in Taiwan and start mapping out your path to launching a enterprise in Taiwan. However earlier than you go any additional, listed below are some issues to consider.

Figuring out if your small business is an effective match for Taiwan

As a {hardware} manufacturing hub, Taiwan is an apparent alternative for multinationals like Apple, Google, and HP in search of companions and suppliers.

However zero-to-one corporations might have a tougher time figuring out the most effective methods to leverage Taiwan’s capabilities. Since Taiwan’s strengths lie largely in tech manufacturing, an SME that produces bodily merchandise, say, electrical bicycles or 3D printers would have the best probability of success.

Then again, enterprises which are consumer-facing or predicated on a scale, e.g. promoting a brand new elixir (kombucha or handcrafted beer) to Taiwan might have to rethink their plans or companies that hope to make use of Taiwan as a stepping-stone to China might encounter extra challenges.

Buying a authorities grant in Taiwan

Taiwan has finished an excellent job promoting authorities assist for start-ups. We have now encountered many entrepreneurs upon their face go to to Taiwan inquiring about authorities grants for his or her startups.

It is very important perceive that authorities grants are awarded to not people however to corporations registered in Taiwan, so if you happen to’re a international entrepreneur with a international firm, then it is advisable set up a Taiwanese entity to qualify for a authorities grant.

Department workplaces and consultant workplaces will not be eligible for grants. And whereas international staff with Taiwanese residency (ARC) are allowed to obtain such subsidies, distant staff situated outdoors Taiwan aren’t eligible. We cowl this in better element on the method of making use of for a authorities grant in Taiwan right here.

Understanding accounting practices in Taiwan

It’s simple to imagine that accounting practices are the identical at residence and overseas, however some facets of Taiwan’s accounting procedures might come as a shock.

Additionally Learn: How distant work has modified the wage scale in Taiwan

Take enterprise bills for example. Within the US, enterprise accounting operates inside an “innocent-until-proven-guilty” framework, which implies you possibly can write off a enterprise expense in your tax return with a receipt, even whether it is written on a paper serviette.

However Taiwan’s enterprise accounting framework is the other: you’re responsible till confirmed harmless. So to say a enterprise expense, it is advisable obtain a Fa-Piao (發票) or a Uniform Bill, however to ensure that it to be an expense deduction, it is advisable give the seller your tax ID quantity, which must be typed or written on the official receipt you get hold of from them.

Elsewhere, notably within the context of start-ups, this accounting framework signifies that a cost you’ve made to an organization registered outdoors Taiwan for a SaaS subscription or to a freelancer in Chiang Mai gained’t be recognised by the Taiwanese authorities as a sound enterprise expense. These are solely two examples of how accounting practices in Taiwan might be fully completely different from different locations.

Navigating the regulatory surroundings in Taiwan

Startups as we speak are constructed for a digital, cross-border world, however managing cross-country jurisdictions is usually a actual large headache from an administrative standpoint. Taiwan could also be a liberal and open nation, however on the subject of enterprise practices it’s nonetheless comparatively conservative.

Additionally Learn: 5G tech? All eyes on Taiwan

The federal government in Taiwan oversees a lot of each day enterprise. Taiwanese labour legislation, for instance, takes priority over any settlement that could be signed between an organization and its workers, so employers and workers can’t enter into any personal agreements as they might be capable to, say, within the US.

And because the Taiwanese authorities performs an enormous function in enterprise, international enterprise homeowners will seemingly discover themselves having to speak to a number of businesses to get solutions to their enterprise questions. That is the place a service like eleventh Fleet can assist simplify the method.

eleventh Fleet’s outsourced CFO/COO resolution can assist keep away from many missteps for entrepreneurs and firms which are new to Taiwan. Most significantly, eleventh Fleet can assist stave off hassle by serving to its shoppers anticipate any issues that will come up alongside the way in which, saving its shoppers helpful money and time by avoiding detours.

Overcoming the language barrier in Taiwan

Taiwan is nearer to Japan and South Korea by way of English fluency than it’s to Singapore or Hong Kong, the place English is spoken as an official language.

Though the Taiwanese authorities is dedicated to creating the nation bilingual by 2030, enterprise in Taiwan remains to be largely performed in Mandarin, and enterprise contracts and paperwork are written in Chinese language.

This implies international traders who aren’t fluent within the native language should take the additional step to have their official paperwork and contracts translated when registering their companies in Taiwan.

Furthermore, if you find yourself prepared for enterprise, you must have somebody in your workforce who can assist you navigate the language and cultural obstacles.

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