How To Start A Business In Taiwan
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Hardware Massive Impact
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Transcript of How To Start A Business In Taiwan
Hardware Massive Impact
Phone Answering
We answer the phone for
hundreds of companies
B2B Telemarketing
2005
http://startup.sme.gov.tw/
The Good
Foreigner can own 100%
No paid in capital limit*
Great place to live
No bribes, few surprises
A growing start-up community
13
The Good
Strong international business community
An edge in hardware development
Things are still improving
Entrepreneur visa
Foreign student visa
Contact Taiwan
14
Origin 15
US
Canada
France
UK
Germany
Why start in Taipei?16
Industries17
Taipei Advantages
18
Employees
2012 Foreign
Entrepreneur
Survey
8
Taiwan
SME
Average
5
2016 Foreign
Entrepreneur
Survey
10
19
The Bad
Banks
Telecoms
Foreign Investment Approval
Residency/Citizenship for you
Residency/Citizenship for family
Hiring foreigners
ARC number issues
Business Registration Address
Pension for foreigners
Taxation of foreign services
21
All the same
• Visiting tourist
• Professional worker: Alien
Resident Certificate ARC
• Family member, for example
married to a Taiwanese citizen:
Join Family Resident Visa JFRV
• Permanent resident: Alien
Resident Permanent Certificate
APRC
• Small baby
• University
• First job
Local Foreign
22
23
24
25
Did you find the resources you need?
Have you accessed any government resources?
Before After
DigiJames Network Overview Using DJ Smart RCU
DigiJames Infrastructure Server
IP/ZigBee Coordinator
Ethernet Switch
RCU
21°C
Drape/Sheer
Drape/Sheer
DND
Curtains Ctrl
Curtains Ctrl
RCU Commander
Wi-Fi
DigiJames on Microsoft Azure
CloudDigiJames Staff Portal
Tablet with DigiJames App
TV
IR
PMS/POS
DJ
Switc
hRCU
DJ
Switc
hRCU
DigiJames Infrastructure Server
IP/ZigBee Coordinator
Ethernet Switch
RCU
21°C
Drape/Sheer
Drape/Sheer
DND
Curtains Ctrl
Curtains Ctrl
RCU Commander
Wi-Fi
DigiJames on Microsoft Azure
CloudDigiJames Staff Portal
Tablet with DigiJames App
TV
IR
PMS/POS
DigiJames Infrastructure Server
IP/ZigBee Coordinator
Ethernet Switch
RCU
21°C
Drape/Sheer
Drape/Sheer
DND
Curtains Ctrl
Curtains Ctrl
RCU Commander
Wi-Fi
DigiJames on Microsoft Azure
CloudDigiJames Staff Portal
Tablet with DigiJames App
TV
IR
PMS/POS
Wifi
Blaster
Hardware
4 proprietary Hotel IoT devices
Inexpensive to develop but sometimes hard to keep schedules
Low MOQ
Good payment terms (50/50)
Software developers hard to recruit
Fùzé ré n 負責人Responsible Person
No company without Fùzé ré n
The Fùzé ré n is not necessarily the CEO, he/she need not beinvolved in the day-to-day running of the business
The Fùzé ré n represents the company, according to Taiwaneseregulations
Article 23, Company Act : “The Fùzé ré n is technically responsiblefor administration of the company and is liable for any damagesincurred by anyone if the company breaks the law.”
Might have to cover company’s debt under certaincircumstances, and may even be condemned to prison
Business Entities
Sole proprietorship
Partnership
Branch office
Representative office
Company / Corporation:
• Company Ltd by Shares (gufen you xian gong si)
• Ltd Liability Company (you xian gong si)
Work Permits
Type A work permit is for Professional and
Technical Personnel. Basically any foreigner other
than a shareholder will be sorted under this type.
Type B work permit is for a manager of a branch, rep office or foreign invested company. This is the
key type of permit should you need to obtain
residency to legally work in Taiwan
ARC RequirementsType Requirements Corporation Branch Office Rep. Office
Pro Employee Master degree, no
work exp
Bachelor degree;
more than 2 years
related work exp.
No Degree; more than
2 yr related work exp.
Master degree, no
work exp
Bachelor degree; more
than 2 years related
work exp.
No Degree; more than
2 yr related work exp.
Master degree, no work
exp
Bachelor degree; more
than 2 years related
work exp.
No Degree; more than
2 yr related work exp.
Business -1 yr 5M capital
+1 yr 10M average
turnover last few years
-1 yr 5M capital
+1 yr 10M average
turnover last few years
-1 yr none
+1 yr actual
performance
Boss Employee Foreigner own at least
1/3 of company
POA makes applicant
the manager
POA makes applicant
the manager
Business -1 yr 500K capital
1+ yr 3M turnover
-1 yr 500K capital
1+ yr 3M turnover
-1 yr, none
1+ yr, performance info
Entrepreneur Visa
Up to 3 founders can get visas for up to 3 years
Get domestic or foreign venture capital investment of NT$ 2 million or funding from a government recognized crowdfunding platform.
Participated in a national entrepreneurial park such as the Taiwan Startup Stadium -http://www.startupstadium.tw/.
Hold patents overseas
Having won an international startup or design competitions such as IDG Demo Show, Red Dot, iF design.
An entrepreneur who has invested at least NT$1 million in an innovative startup and is the representative of that company
Staffing your business
www.ohjobbank.net
www.104.com.tw
www.1111.com.tw
Contact Taiwan - www.contacttaiwan.tw
CCIFT Recruiting services - www.ccift.org.tw
InsuranceEmployee receives
Paid by company
on behalf of the employee
Paid by company
Labor + Employment Insurance
456 1,596
Accident Insurance 46
Health Insurance (1 dependent)
708 1,202
Retirement benefits 1,440
Total 22,336 1,164 4,284
Agreed upon salary: $23,500The employee receives: $22,336Your total cash cost for this employee will be: $23,500 + $4284 = $27,784
Taxes
VAT 5%, net on revenues and purchases
Corporate Income Tax: 17% on profits over 120,000
Personal Income Tax
Income bracket Tax rate
less than NT$ 500,000 5%
NT$ 500,000 to 1,090,000 NT$ 25,000 plus 12% for the portion of income more than 500,000
NT$ 1,090,000 to 2,180,000 NT$ 95,800 plus 20% for the portion of income more than 1,090,000
NT$ 2,180,000 to 4,090,000 NT$313,800 plus 30% for the portion of income more than 2,180,000
Above NT$ 4,090,000 NT$ 886,800 plus 40% for the portion of income more than 4,090,000
The best source of funding will be YOURSELF
F, F & F
Taiwan VC Association - www.tvca.org.tw
Government Grants and Subsidies
Very active at both national and local level
Subsidies on Resources like salaries or equipment for new
projects
http://startup.sme.gov.tw/national-government-grants-loans-
and-assistances/
Fundraising
Chambers
