Setting Up Your Business in Taiwan: GEOS Guide for Global Expansion

This article is apart of our weekly series associated with the The Global Subsidiary Index. The series is designed to help businesses identify the best countries for establishing a subsidiary based on key operational factors. GEOS provides a data-driven ranking of jurisdictions worldwide, assessing across 40+ criteria to bring you insights into global expansion opportunities.

Each country on the index is scored on an overall score out of 100, with each individual criterion out of 5 or 10. Higher scores indicate a more favorable environment for businesses. By leveraging these insights, companies can make informed decisions on where to establish a legal presence.

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Taiwan plays a major role in Asia’s economy. In 2025, business in Taiwan continues to sit close to global tech supply chains, especially across semiconductors, AI, and advanced manufacturing. That closeness makes Taiwan a key part of how many international companies manage innovation and supply stability.

The opportunity goes beyond TSMC. Strong tech clusters around Hsinchu and Taipei bring together chip design, hardware, and growing software teams. For US and European businesses, the operating environment often feels familiar, supported by solid IP protection and global standards.

Government innovation programs also make cross-border partnerships easier to build. For companies expanding into Asia, Taiwan offers real potential, as long as setup and compliance are planned early.

This guide walks through what to expect when setting up a business in Taiwan and where preparation can make the process smoother.

Why Should You Expand to Taiwan?

Taiwan gives companies a steady APAC base with strong systems already in place. That balance comes through in its GEOS Global Subsidiary Index score of 57.6. Infrastructure and financial strength push the score up, while geopolitical risk continues to pull it down.

For most foreign subsidiaries, challenges usually show up during setup. Data compliance, banking processes, language gaps, and immigration steps often need extra planning. Once those pieces are sorted, operations tend to run smoothly.

Strong income levels with room to grow

Taiwan earns an 8/10 GDP per capita score, with income reaching USD 34,060 in 2024. That figure has climbed by more than USD 31,000 since 1980. The path has not been perfectly even, but the long-term direction stays positive.

Looking ahead, GDP per capita is expected to keep rising through 2030. That supports steady purchasing power and a business environment that feels settled rather than volatile.

Digital infrastructure that keeps things moving

Taiwan holds a 5/5 Communications Infrastructure score, backed by decades of telecom investment and competition among major providers. Connectivity remains one of the country’s biggest strengths:

• Mobile subscriptions exceed the total population
• Fixed broadband reaches more than 65% of households
• 5G coverage continues to expand nationwide

It is important to highlight Taiwan’s excellent ICT infrastructure, which facilitates firms’ digital transformation and supports seamless business operations. Digital transformation is crucial in Taiwan, with enterprises pioneering cloud computing and AI to boost productivity and competitiveness.

For global teams, cloud tools run reliably and regional coordination feels easy.

A financial system built for stability

Taiwan also scores 5/5 for Financial Infrastructure. Institutions are well developed, and payment disruption risk remains low across economic, commercial, and financing areas. Once accounts and approvals are in place, most subsidiaries see few issues with:

• Payroll and employee payments
• Vendor and supplier transactions
• Cross-border fund transfers

The system tends to stay predictable.

Smaller market, higher-value focus

Taiwan’s Population Score of 2/5 reflects its size of about 23.9 million people. That limits large-scale consumer reach compared to other APAC markets. Instead, many companies use Taiwan for higher-value work, such as:

• Engineering and technical teams
• R&D and product development
• Supply chain and regional coordination

Its role in electronics and semiconductor supply chains continues to support this focus.

Political risk needs early planning

Political risk remains the main constraint, reflected in Taiwan’s 1/5 Political Risk score. Cross-strait tensions and broader geopolitical pressure add uncertainty at the strategic level.

Day-to-day business stays stable, but planning ahead helps. Many firms tighten governance early, strengthen documentation, and prepare contingencies from the start.

Local expert insight

Local advisors often describe Taiwan as a high-capability, higher contingency-planning jurisdiction, where structured operating habits tend to appear earlier than in neighboring markets.

Tax and Regulatory Environment

Taiwan’s operating environment is generally solid, but a few areas shape how it feels in practice. The core tax and business framework sits in the middle range. Data compliance stands out as the main source of complexity.

You can see that reflected in the scores. Corporate tax, accounting, and ease of doing business all land around the mid-range. Data rules sit much lower and tend to drive most of the extra planning.

Corporate tax stays competitive

Taiwan holds a Corporate Tax Rate score of 6/10, with a 20% corporate income tax rate. Resident companies pay tax on worldwide income. Non-resident companies pay tax on Taiwan-sourced income.

If a foreign company has a fixed place of business or a local business agent, it usually files like a resident company at the same 20% rate. Without a local presence, withholding tax applies instead. Treaty rates can lower that in some cases.

There are a few extras worth flagging early:

• A 5% profit retention tax can apply to earnings that stay undistributed by the end of the following year
• An Income Basic Tax (IBT) may apply when certain income is tax-exempt, using a 12% rate under current rules

The headline rate looks simple. The details add complexity if you wait too long to plan.

Tax and accounting expectations stay high

Taiwan’s Tax and Accounting score of 6/10 reflects a workable system with little tolerance for sloppy records. Bookkeeping quality matters. Audit readiness matters too.

Tax returns follow a self-assessment model and are due within five months after the end of the tax year. The standard tax year runs from January 1 to December 31, unless approval is granted for a different fiscal year.

Audits can happen without a set schedule. Authorities often review items like management fees charged from parent companies, transfer pricing, withholding tax, and R&D incentives. Clean documentation from day one makes a big difference here.

Ease of doing business improves after setup

Taiwan’s Overall Ease of Doing Business** score of 6/10** lines up with how most subsidiaries describe the experience. The setup phase can feel procedural, especially around banking and approvals. Once the entity is running, things usually settle into a steady rhythm.

The Compliance Reporting score of 3/5 fits this pattern. Ongoing reporting is manageable, but paperwork is part of the routine. Labor compliance stands out in particular, with requirements around attendance tracking, payroll records, internal work rules, and inspections. Understanding local working hour policies, including regulations on employee working hours and overtime, is essential to ensure legal compliance and avoid penalties. Penalties can apply, and serious issues may be publicly disclosed.

Data compliance drives most complexity

Taiwan’s Data Management laws score of 1/5 is the clearest outlier. The Personal Data Protection Act sets detailed expectations around notices, security controls, cross-border transfers, and breach response.

In practice, companies often find the rules stricter than expected, especially when global systems handle employee or customer data. Common pressure points include:

• Limits or added scrutiny around cross-border data transfers in certain situations
• Breach notifications that must be issued quickly, sometimes alongside regulator reporting
• Data security failures that can lead to significant fines and personal liability for management

Local experts often flag this early. Many teams adopt conservative data policies from the start, particularly around vendor access, monitoring tools, and cross-border workflows.

Local expert insight

Data compliance expectations in practice can be stricter than what foreign teams anticipate. Many companies implement conservative internal policies early, especially where cross-border transfers, vendor access, or employee monitoring tools are involved.

Incorporation and Setup Essentials

Setting up a company in Taiwan is very doable, but it follows a structured process that benefits from early planning. Most businesses should expect a 2–3 month timeline end to end, covering document preparation, required certifications, incorporation steps, and early post-registration requirements.

The Index scores help explain why the process takes that amount of time. Digital tools support parts of the journey, while formal review and documentation still guide several key steps.

Government systems and digital tools

Taiwan earns a 4/5 Government Portal Sophistication score, reflecting solid online filing and tracking capabilities. These systems make it easier to submit information and follow progress, which helps the process move forward. At the same time, portals do not replace every step, and some filings still require hands-on follow-up or verified paperwork, especially during incorporation and banking.

Registered address setup

With a Registered Address score of 4/5, securing an address is usually straightforward. The timing matters, since that address feeds directly into tax registration, company filings, and banking applications. When it is set up early and correctly, later registrations tend to move more smoothly.

Local representation and governance

The Resident Director score of 3/5 places local representation in the mid-complexity range. Some companies need a local director, business agent, or approved governance structure depending on how the entity is formed. This is generally manageable, but it does add coordination during incorporation and can influence how quickly filings are approved.

Licensing considerations

Taiwan’s Licensing Requirements score of 3/5 reflects how much depends on the business activity. Many companies can operate under standard registration, while others must obtain approvals before launching. Financial services, payments, fintech, and certain professional services often fall into the regulated category, which can extend setup timelines if not identified early.

Share capital expectations

The Share Capital Amount score of 3/5 shows that statutory minimums are usually reasonable, but they vary by business structure.

Most foreign subsidiaries choose a private limited company, which generally requires TWD 500,000 in paid-up capital. Public limited companies carry higher thresholds, with TWD 1 million minimum capital, and a portion must be paid in during incorporation.

Partnership structures often have no minimum capital requirement, but they come with different liability exposure, which is why they are less common for foreign entry. In many cases, paid-up capital must be deposited into a restricted bank account and held there until the company is formally established, adding another coordination step between incorporation and banking.

Documentation and certifications

Documentation plays a steady role throughout setup. The Original Paperwork score of 3/5 reflects the need for notarized, certified, and sometimes translated documents. These requirements are consistent rather than complex, but they can slow progress if document preparation starts late or requires re-certification.

In-person requirements

The In-Person Travel Requirements score of 2/5 highlights one of the more common friction points. Banking and authorized signatory steps may require live verification, especially when opening corporate accounts or appointing signatories. While this does not apply to every company, it can affect scheduling when it does.

Local expert insight

Taiwan remains a “formal process” jurisdiction. Even when portals exist, banks and registrars often require live verification, original documents, or local signatory actions.

Banking and Financial Operations

This is where many foreign companies feel the most friction. Even after incorporation is complete, banking and day-to-day financial setup can take longer than expected. The Index scores reflect that gap between legal formation and operational readiness. We provide detailed guidance and support to help businesses and investors navigate Taiwan’s banking and financial environment.

Taiwan offers various tax breaks and grants for foreign investors, particularly in innovative, R&D, or high-tech sectors.

Bank onboarding and KYC

Taiwan’s KYC requirements score of 2/5 is a clear outlier. Bank onboarding for foreign-owned entities is thorough and often slow, driven by strict anti-money laundering rules that have been in place since the mid-1990s.

Banks typically require detailed documentation on ownership, control, and business purpose. Reviews often come in stages rather than all at once, which can extend timelines.

Common areas banks focus on include:

• Ultimate beneficial owner structure, often down to 25 percent ownership thresholds
• Business scope and expected transaction activity
• Proof of real operations, not just incorporation documents

It is normal for banks to come back with follow-up questions, even after initial submission.

Expense management and ongoing payments

The Expense Management score of 2/5 reflects how procedural financial operations can feel once accounts are open. Documentation discipline matters more here than in many APAC markets.

Transactions above certain thresholds can trigger additional checks, and banks may request supporting records for payments that appear outside the stated business scope. Internal processes tend to work best when documentation is prepared upfront rather than reactively.

AML oversight and transaction monitoring

Taiwan operates under a mature AML framework overseen by the Financial Supervisory Commission. Due diligence applies not only at onboarding, but also during ongoing activity. Banks are required to perform enhanced checks in higher-risk situations, such as:

• Large domestic transfers above TWD 30,000
• One-off transactions exceeding TWD 500,000
• Transactions linked to higher-risk jurisdictions

This helps explain why account activity may be reviewed even after months of normal operation.

Operating costs and salary context

Despite the procedural overhead, operating costs remain reasonable for a high-income economy. The Average Budget score of 6/10 reflects balanced expenses rather than premium pricing.

Salary levels sit in a similar range. The Salary Benchmarking score of 6/10 places Taiwan in the middle of APAC cost structures. It is not the lowest-cost market, but many companies view it as good value for skill quality and workforce stability.

Current benchmarks point to:

• Average base salary around TWD 1.07 million per year
• Average hourly rates near TWD 516

Digital execution and signatures

Taiwan does support electronic signatures under its Electronic Signatures Act, and digital signatures can carry the same legal weight as handwritten ones. In practice, though, banks and government agencies may still prefer wet signatures or specific approved formats, especially during account opening. This mix of modern law and conservative execution often surprises first-time entrants.

Local expert insight

Expect multiple rounds of bank questions on UBO structure, business scope, and proof of operations. It is common for bank activation to become the pacing item, even after the entity is legally formed.

Hiring and Employment Reality

Hiring in Taiwan is doable, but it comes with structure. The Index scores reflect a system that works well when teams plan ahead and follow process.

Employment law and termination

The Employment Law Complexity score is 6/10, which points to a formal but workable framework. Employment relationships follow defined statutory rules under the Labor Standards Act. Terminations require valid grounds, supported by documentation, and courts expect employers to show reasonable steps before ending employment.

In daily operations, teams usually need to:

• Keep employment contracts consistent and current
• Record performance discussions and follow-up actions
• Apply notice periods or payment in lieu correctly

Payroll and employer contributions

The Employer Payroll Contributions score of 4/5 reflects meaningful obligations that need early modelling. Payroll operates on strict timelines, with tax withholding and social insurance closely linked.

Most employers focus on:

• Enrolling employees in insurance and pension schemes from day one
• Tracking monthly tax and contribution deadlines
• Reconciling insurance bills after government system updates

Benefits, leave, and workforce balance

With a Benefits score of 4/5, obligations are clearly defined and should be built into workforce planning. Leave entitlements increase with tenure and require careful tracking as teams grow.

The Too Employee Friendly score of 3/5 places Taiwan in the middle range. Employee protections are well established, particularly around termination and discrimination, which makes consistent HR practices important. Union involvement also sits at 3/5. Impact varies by industry, with some teams encountering minimal interaction.

Local expert insight

Foreign teams often find success by focusing on operational discipline. Well-structured contracts, clear HR policies, and consistent documentation help employment processes run smoothly over time.

Talent Availability and Scaling

Taiwan’s talent market has real strengths, but scaling teams takes planning. The Index points to depth in specific areas rather than broad availability across every function.

Technical and finance talent

The Developer Talent score sits at 2/5, which makes it one of the lowest outliers. Strong engineers exist, especially around semiconductors and advanced manufacturing, but competition rises quickly for senior or niche roles. Hiring often takes longer than expected once teams move beyond core technical profiles.

Finance shows a similar pattern. The Finance Talent score is also 2/5, which can affect controllership, reporting, and senior finance hires. Many companies fill these roles regionally or keep them centralized outside Taiwan.

Commercial and growth roles

Availability improves when it comes to go-to-market teams. Both Sales Talent and Marketing Talent score 3/5, giving companies more flexibility for local commercial hiring. Talent exists, but competition remains steady, especially for candidates with international experience.

The overall Difficulty of Recruiting score is 4/10, which reflects a market that moves more slowly than many teams expect. Shortlists can take time, and strong candidates often weigh multiple offers.

Language and operating friction

The Language score of 2/5 plays a bigger role than many teams anticipate. English proficiency varies, and local-language requirements still shape daily operations. Contracts, filings, bank documentation, and vendor agreements often default to Mandarin, which can add review time and internal coordination.

Many teams adjust by:

• Hiring bilingual local staff for key interface roles
• Using regional shared services for specialist functions
• Keeping legal, finance, or reporting teams centralized

Local expert insight

Many foreign subsidiaries succeed by building a lean local core team, then relying on regional hiring or shared-services models for specialized roles. This approach supports steady scaling without putting pressure on a tight local talent pool.

Immigration and Mobility

Immigration is a clear friction point in Taiwan. The Immigration score of 2/5 reflects challenges for companies planning expatriate-heavy leadership or fast international transfers.

Taiwan follows a three-tier immigration framework, with different rules for foreign nationals, Mainland China nationals, and citizens of Hong Kong or Macau. That structure adds order, but it also adds steps and timing dependencies.

Short-term business travel is usually workable through visa exemptions or applications via a Taipei Economic and Cultural Office. Employment is different. Work permits must be approved before hiring can begin, and onboarding often depends on permit sequencing.

Delays often appear when mobility planning starts too late, especially around:

• Work permit timing versus entity setup
• Residence registration after approval
• Different rules across nationality groups

Local expert insight

Work authorization and onboarding sequencing matters. Many delays come from hiring first and addressing permits later, instead of building immigration timelines into the setup plan.

Doing Business in Taiwan in a Global Setting

For many international companies, doing business in Taiwan feels structured once teams settle into the system. The country operates within well-established global frameworks, which helps firms interact smoothly across the world and align long-term expansion plans.

Business in Taiwan continues to attract attention due to steady economic growth and its role in international commerce. Many companies expand here to support regional operations, supply networks, and product development rather than direct consumer scale.

Success often comes down to how prepared teams are from the start. Companies that remain prepared early tend to manage setup, banking, and compliance with fewer delays.

Industries Driving Investment and Market Opportunities

Investment into Taiwan remains concentrated in high-value sectors where precision and reliability matter most. Semiconductors continue to anchor the market, but opportunities extend far beyond that core industry. The following list highlights key sectors and companies driving business in Taiwan.

The list of companies in Taiwan includes notable companies with primary headquarters located in the country.

Key sectors shaping business activity include:

• Technology development across hardware, software, and applied systems
• Electronics manufacturing supporting global supply chains
• Telecommunications infrastructure that keeps regional networks stable
• Medical devices built around quality control, research, and advanced equipment

Many Taiwanese companies support global brands by supplying products, components, and specialized equipment used across multiple territories. That depth of expertise allows foreign firms to build operations that focus on quality rather than volume.

These developments continue to strengthen Taiwan’s long-term prospects as a regional base.

Location Strategy and Regional Developments

Taipei remains the primary entry point for most companies. Proximity to regulators, banks, and experienced employees supports daily business operations and faster coordination.

At the same time, regional developments are shaping new options. Areas such as Chiayi County continue to attract manufacturing and industrial investment, particularly for companies that require space for equipment, testing, or logistics activities. These regions are often included in national development strategies and industrial frameworks, highlighting their growing importance within Taiwan’s broader economic landscape.

Location planning often depends on:

• The type of business activities being performed
• Access to suppliers and transportation networks
• How frequently teams need to interact with authorities

Choosing the right location early helps companies avoid operational changes later.

Joint Venture Models and Strategic Partnerships

Some firms choose a joint venture structure when entering Taiwan. A joint venture can support faster setup when local relationships, licensing history, or sector knowledge matter.

These structures often focus on shared manufacturing, product development, or distribution. Strong partnerships rely on early consensus around governance, reporting, and long-term aims. In Taiwanese business culture, commitment to the partnership and consistent engagement are essential for building trust and sustaining strong business relationships over time.

Clear communication helps build trust between parties and supports smoother working relationships. When aligned properly, partnerships allow companies to expand with confidence while managing early-stage challenges.

Managing Operations, Regulations, and Daily Business Flow

Operating in Taiwan requires consistent attention to process. Regulations apply across taxes, employment, data handling, and banking, and authorities expect documentation to stay current.

Companies often perform best when they define clear methods early, including:

• How approvals move between local and global teams
• How documents are reviewed and stored
• How communication flows across time zones

In addition, building and maintaining a strong professional network is essential in Taiwanese business culture, as trust and reciprocal support within your network can greatly enhance coordination and long-term success.

Taxes remain a key focus area. Ongoing filings, payroll obligations, and cross-border transactions all require accurate tracking. Using shared tools helps teams manage deadlines and reduce friction.

Well-planned operations make day-to-day business more predictable.

Building Long-Term Prospects in Taiwan

Taiwan supports sustainable growth for companies willing to plan carefully. Firms that invest time early in structure, compliance, and documentation often see smoother results over time.

Business in Taiwan tends to reward consistency. Companies that stay committed, understand the regulatory environment, and build reliable systems gain the ability to operate confidently within a complex global landscape. Participating in social and cultural events, such as meals and gatherings, is also important for building and strengthening business relationships in Taiwan.

With the right plans in place, Taiwan becomes a dependable base that supports expansion across the globe and strengthens long-term opportunities.

Unique Taiwan Expansion Insights

A few factors tend to shape business in Taiwan in ways teams don’t always expect. These usually show up early and influence how smoothly things move.

Geopolitical risk sets the tone

With a Political Risk Score of 1/5, geopolitical exposure often affects more than strategy planning. Banks and internal stakeholders may expect stronger governance, tighter approvals, and more detailed documentation from the start.

Data compliance needs early planning

The Data Management Laws Score of 1/5 signals strict expectations around how data is handled. Teams usually need to factor this into tooling, vendor access, and cross-border workflows early on, rather than adjusting later.

Operational friction is part of day-to-day setup

Scores for KYC (2/5), Expense Management (2/5), and In-Person Requirements (2/5) point to process-heavy execution. Setup is very doable, but it often relies on structured coordination and well-prepared documentation.

• Longer banking onboarding cycles
• More verification steps than expected
• Ongoing documentation discipline

Talent constraints influence scale

Talent availability can shape how fast teams grow. With Developer Talent at 2/5 and Finance Talent at 2/5, scaling beyond a small local team can take time. Many companies respond by:

• Keeping a lean core team in Taiwan
• Using regional or shared-service models for specialized roles

These insights don’t block expansion, but they do shape how teams plan timelines, structure operations, and manage expectations early on.

How GEOS Simplifies Your Expansion into Taiwan

Expanding your business in Taiwan often comes down to preparation and follow-through. GEOS supports both entity setup and ongoing compliance, with hands-on help across registered address coordination, incorporation workflow management, and the documentation standards typically expected by banks and regulators.

The approach focuses on keeping materials consistent, complete, and ready when reviews happen, which helps reduce delays during banking onboarding and post-incorporation registrations.

AI-Powered Global Expansion Support

GEOS also provides AI-powered support to help teams stay on top of compliance. The platform tracks upcoming filings, highlights documentation gaps, and manages recurring obligations so nothing falls out of sequence as operations ramp up.

Is Taiwan the Right Fit for Your Business?

With a GEOS Global Subsidiary Index Score of 57.6, Taiwan works well for companies that prioritize infrastructure quality and a high-income operating environment. It tends to suit teams that are comfortable planning for added friction around political risk, data compliance, banking processes, and bilingual workflows.

📩 Contact GEOS for a customized expansion strategy.

This article does not constitute legal advice.