Doing
Business
Foreigners looking to set up a business in Taiwan are better ready
for a ream of paperwork and red tape. The restrictions on setting
up businesses have eased greatly in the past ten years, but few
foreigners have taken the initiative to set up companies wholly
owned and operated by them.
Ten years ago, a foreigner could not own a business, he or she had
to have a local majority shareholder. Today, it is possible, but
outlandish capitalization requirements and archaic labor laws discourage
it. It is still easier to get local friends to help set up the company
and hire the foreigner to manage it. Every local business that wishes
to hire a foreigner must show NT$500,000 in working capital (about
US$15,000).
If the foreigner wishes to set up his own company, however, he is
restricted to opening a branch office of a foreign company. This
requires capitalization of NT$5 million (about $1.5 million) and
it must come from overseas. Hiring a locally trained lawyer will
help facilitate application and setup. The pitfalls are real and
the entire process might take up to five or six months.
Restrictions
Foreigners
cannot in any circumstances invest in farming, ranching,
hunting, forestry, fishing, the chemical industry, military equipment
or materials including weapons and bombs, transportation (unless
you are an overseas Chinese), government services such as postal
services, telecommunications including radio and TV, and entertainment
theme parks and services.
The foreigner can invest in a minority role and
with the understanding that he or she will be monitored by the government
in energy mining (coal being the only applicable source of industry
in Taiwan), natural gas, minerals, metal mining like gold, non-military
weapons like hunting knives, precision instruments, precious metals
and stones and naturally occurring valuables such as elephant ivory,
providing electric power, compressed air, water refinement and purification
and transfer, overseas financial providers like international banks
and brokers such as stock brokers, insurance, commodities, permanent
assets like land, legal and accounting services, construction, social
services, and publishing.
Tax
or Trade Incentives
There are no tax incentives for foreigners working,
investing, or doing business in Taiwan.
Business
Attire
Business attire is the appropriate
trade attire for both men and women. For men especially,
suits are highly recommended at all times,
except in the summer when short-sleeved shirts are acceptable. Women
can wear pants, especially when extensive travel
is required.
Taipei is not noted for being a stylish
place to live. The business traveler will not note any designer
clothing on his counterparts during talks, although he might when
being entertained after business hours. In fact, evenings are actually
more formal than business meetings in most cases.
Casual
dress is acceptable in many situations. Visiting companies
outside of Taipei rarely require a necktie, and the business traveler
need not dress up unless he is visiting the head office of the business
partner. |
