Market entry into Taiwan

Market overview

Foreign businesses may enter Taiwan through direct cross-border supply, a Taiwan-incorporated company, registration of a branch, a representative office for permitted activities, or arrangements with distributors, importers, agents, and local partners. The appropriate pathway depends on the intended activities, investment structure, business scope, tax exposure, staffing, imports, premises, and sector-specific requirements.

Typical entry routes

• Direct export or cross-border supply from New Zealand
• Taiwan-incorporated subsidiary or local company
• Registered branch of an overseas company
• Representative office for qualifying liaison and non-revenue-generating activities
• Distributor, importer, agent, franchise, licensing, or commercial partnership
• E-commerce or remote service delivery, subject to applicable Taiwan requirements

Key regulatory issues

• The proposed company name and business scope should be reserved and reviewed before registration
• Foreign-investment review or approval may be required before capital is remitted and verified
• Activities requiring special permission should obtain the relevant approval before company registration
• Products may require registration, testing, certification, standards compliance, labelling, inspection, or authority approval
• Employment, immigration, consumer, competition, privacy, environmental, intellectual-property, and premises requirements may apply
• The operating model should be confirmed before contracts, capital, staffing, imports, premises, or distribution arrangements are committed

Registrations and filings

• Company-name and business-scope reservation
• Foreign-investment application and capital verification where required
• Company, branch, or representative-office registration with the appropriate authority
• Business and tax registration with the relevant tax authority
• English-name reservation and importer or exporter registration where goods will be traded
• Sector licences, product registrations, employer filings, work permits, premises, and local approvals where applicable

Customs and trade

• Confirm the Taiwan importer, duty payer, or bill-of-lading holder responsible for customs clearance
• Classify goods under the applicable Taiwan customs tariff
• Determine customs value, origin, duty, business tax, commodity tax, and available preferential treatment
• Identify prohibited, restricted, controlled, licensed, inspected, or permit-dependent goods before shipment
• Prepare the import declaration, commercial invoice, packing list, transport documents, permits, and origin evidence
• Provide technical catalogues, manuals, drawings, or other supporting materials where customs requires them
• Coordinate declaration, inspection, tax payment, release, and recordkeeping with an authorised customs broker where appropriate

Tax considerations

• Assess profit-seeking-enterprise income-tax consequences of the selected entity and operating model
• Determine business-tax registration, invoicing, filing, and payment obligations
• Assess business-tax requirements for qualifying cross-border electronic services
• Identify withholding obligations relating to services, royalties, interest, employment, and payments to non-residents
• Review treaty, permanent-establishment, transfer-pricing, financing, management-fee, and profit-repatriation considerations
• Establish compliant accounting, invoice, tax-return, payment, reconciliation, and recordkeeping processes

Common pitfalls

• Selecting an entity before confirming foreign-investment review and business-scope requirements
• Remitting investment capital before following the required approval and verification sequence
• Assuming company registration alone completes sector licensing and product-approval requirements
• Using a representative office for revenue-generating or contract-execution activities
• Shipping goods before checking restrictions, permits, inspection, certification, and labelling requirements
• Failing to register appropriately as an importer or exporter before beginning trade
• Overlooking cross-border electronic-service business-tax obligations