Expand Business in Taiwan
Global Upside helps businesses expand into Taiwan by providing talent acquisition, human resources, accounting, payroll, tax, incorporation, and professional employer organization (PEO)/employer of record (EOR) services. Our comprehensive offerings create an end-to-end solution that helps you establish your business and optimize your operations, all while maintaining compliance with Taiwanese laws and regulations.
The hiring and incorporation processes in Taiwan are often complex, time-consuming, and involve numerous legal and compliance challenges. Global Upside simplifies these processes and lifts the compliance burden from your business. Our teams have the experience and expertise required to help you establish a legal entity in Taiwan. We also offer PEO/EOR solutions to companies interested in hiring employees quickly, without setting up a legal entity in the country.
Taiwan has a dynamic capitalist economy, driven mainly by industrial manufacturing, and particularly exports of machinery, petrochemicals, and electronics. This substantial reliance on exports exhibits the economy to instabilities in international demand.
- Taiwan ranks as the 22nd largest economy in the world in terms of nominal GDP.
- Taiwan ranks as the 7th largest economy in Asia.
- Taiwan is the 2nd largest exporter of refined petroleum oil.
- Taiwan ranks as the 12th best country in the world for business.
Company limited by shares is an organization that is limited by shares must maintain a profit-seeking business and is a distinct and separate legal establishment whereby the capital is divided into shares. A foreign shareholder must book a foreign investment application (FIA) with the Investment Commission and upon sanction integrate an FIA organization in Taiwan.
On June 15, 2015, a distinct section on Closely-Held Company, also known as CHC, was added to Chapter 5 (Company Limited by Shares) because of the alterations to the Company Act. The motive is to inspire the rise of startups and small and medium firms and to provide the exclusive needs of tech startups. The modifications aim to create more sovereignty for those small or medium organizations and to expand the adaptability in share proprietorship arrangement and business activities of CHC.
Limited Company is owned by individuals whose respective proprietorships are specified in terms of the individuals’ capital benefactions. A foreign shareholder must file an FIA with the Investment Commission and upon sanction integrate a limited company in Taiwan. A limited company has a smaller amount of corporate formalities than an organization limited by shares. For instance, a limited company does not have investors’ meetings
A foreign company may enlist a branch office to profit-seeking events in Taiwan. A branch office is excluded from practically the entirety of the corporate formality prerequisites of an organization limited by shares.
It takes approximately three to four weeks to establish a legal entity set up in Taiwan.
The primary source of employment law in Taiwan is the Labor Standards Act (LSA) which covers almost 95% of the workforce.
The employment contracts do not necessarily have to be in a written format; however, most businesses prefer to do so. The LSA states that the following must be mentioned in the employment agreements:
- Address of the workplace
- Working hours
- Weekly offs or rest periods
- Holidays and leaves
- Bonuses and allowances
- Termination and severance pay
- Retirement policy
- Allowance for sickness and injuries
- Trainings and developments
Salaries are paid monthly for work done from the first day to the last day of a month and the payday is usually the 15th of each month.
Employers need to issue the employees with online pay slips for every month and the records must be kept for at least 10 years.
Local organizations are needed to utilize IFRS Standards as authorized by the Financial Supervisory Commission (FSC), which bar a couple of the initial choices allowed by the IASB. Organizations can likewise acquire the endorsement of the FSC to utilize IFRS Standards as given by the IASB. Foreign organizations have the privilege to choose between IFRS Standards as authorized by the FSC, original IFRS Standards, or US GAAP.
The Personal Data Protection Act (PDPA) is the principal law that regulates personal data protection. The PDPA has been operative since 1 October 2012 and governs any individual, including government organizations and every private sector, who gathers, handles, or uses personal information. Security and personal information protection are identified with the constitutional protection of privacy.
Anti-Bribery & Anti-Corruption Law
The Anti-Corruption Act, Articles 4, 5, 6, 11; and Criminal Code, Articles 121, 122, 123, 131 regulate the bribery of public officials in Taiwan. The arrangements in the Criminal Code managing with anti-corruption and the response thereof are comparable to those contained in the Anti-Corruption Act. Nonetheless, bribing a public official to execute his official obligations is not rebuffed under the Criminal Code. At the point when both the Criminal Code and the Anti-Corruption Act apply, the latter, being a specific law, will administer.
The Anti-Corruption Act and the Criminal Code sets up various punishments for the public officials accepting and the people that bribe a public official.
1. Bribery for public officials:
For individuals: that bribe an official to breach his official duties
i) Imprisonment of a minimum of 1 to 7 years.
ii) A monetary fine of TWD 3 million.
2. Bribery for public officials:
For individuals: that bribe an official to perform official duties
i) Imprisonment of a minimum of 3 years.
ii) A monetary fine of TWD 500,000.
3. Bribery for public officials: that breaches his official duties
i) Imprisonment for a minimum of 10 years or lifetime.
ii) A monetary fine of TWD 100 million.
4. Bribery for public officials: that perform official duties
i) Imprisonment for a minimum of 7 years.
ii) A monetary fine of TWD 60 million.
5. Bribery for public officials
For legal entities
The Anti-Corruption Act and the Criminal Code does not accommodate any corporate offense against a legal establishment.
6. Bribery for private officials
For individuals: if the damage is less than TWD 5 million
i) Imprisonment of a minimum of 5 years.
ii) A monetary fine of TWD 500,000.
7. Bribery for private officials
For individuals: if damage TWD 5 million or more
i) Imprisonment of a minimum of 3 to 10 years.
ii) A monetary fine of TWD 10 million to TWD 200 million.
8. Bribery for private officials
For individuals: if damage TWD 100 million or more
i) Imprisonment of a minimum of 7 years.
ii) A monetary fine of TWD 25 million to TWD 500 million.
9. Bribery for private officials:
For legal entities
The Securities and Exchange Act and the Criminal Code does not accommodate any corporate offense against a legal establishment.