Taiwan Business Guide - Management and Business Studies Portal

HELPING YOUR BUSINESS GROW INTERNATIONALLY 

Taiwan 

Business 

Guide 

1

Disclaimer 

Whereas every effort has been made to ensure that the information given in this document is 

accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, 

Innovation & Skills, and the Foreign & Commonwealth Office) accept liability for any errors, omissions 

or misleading statements, and no warranty is given or responsibility accepted as to the standing of 

any individual, firm, company or other organisation mentioned. 

2

CONTENTS 

INTRODUCTION Why Taiwan? 4 

About this Business Guide 16 

RESEARCHING THE MARKET Where to begin 17 

How we can help you 20 

MARKET ENTRY Choosing the right location 22 

Establishing a presence 24 

GETTING STARTED Finding a customer or partner 32 

Due diligence 33 

Employing staff 34 

Language 36 

Marketing 38 

Interpreters 40 

BUSINESS ISSUES AND Business etiquette 42 

CONSIDERATIONS Intellectual property rights (IPR) 47 

Procurement 48 

Regulations, incentives and tax 49 

Getting paid and financial issues 53 

Insurance 55 

Management, control and quality assurance 56 

Bribery and corruption 57 

Getting to Taiwan 58 

Taiwanese CULTURE Politics 61 

Current economic situation 62 

Religion 63 

Challenges 63 

CONTACTS 64 

3

INTRODUCTION 

WHY Taiwan? 

Taiwan, formally known as the Republic of China, is strategically located at the heart of the 

Asia-Pacific region. Over the last three decades, it has transformed itself from an authoritarian 

one-party state, with an agrarian economy based on rice and sugar, into a thriving capitalist 

economy with a democratically elected government. Taiwan is now the 16th-largest trading 

nation in the world, according to the World Trade Organisation, with an economy founded on 

high-tech and creative industries. 

Taiwan’s economy grew by 10.8 per cent 

in 2010, the strongest annual growth since 

1987. As the rest of the world slowly emerges 

from the economic downturn, domestic 

demand in Taiwan is booming and the 

latest figures indicate that it is entering a 

thriving period of growth. Over the last three 

decades, Taiwan has averaged annual GDP 

growth of around 8 per cent. The country’s 

economic success was, initially, based on 

the manufacture of low-technology goods. 

However, these labour-intensive industries 

have, increasingly, relocated to areas with a 

lower cost base, primarily China, and Taiwan 

has successfully moved into higher valueadded 

manufacturing and exports, mainly in 

electronics and computers. 

Taiwan leads the world in the manufacture 

of computer-related products and 

semiconductors. Before the global recession, 

high-tech products made up around 51.6 

per cent of the country’s exports, compared 

to 29 per cent in South Korea and 20 per 

cent in Japan. Accounting for 17 per cent 

of the global market, Taiwan’s photonics 

industry is estimated to be worth US$90 

billion in 2011. It ranks as the leader in the 

world for production volumes and second 

in terms of production value. 

Taiwan has also become a global centre 

for R&D and a growing number of 

multinational companies (such as Intel, 

Microsoft, Sony and HP) are choosing it as 

the focal point for R&D in the Asia-Pacific 

region. The World Economic Forum’s World 

Competitiveness Report ranks Taiwan eighth 

in the world for R&D. 

It has developed one of the most advanced 

telecommunications networks in Asia and 

wireless penetration has almost reached 

saturation levels, thanks to a comprehensive 

infrastructure of Wi-Fi, WiFly, WiMAX and 

3.5G. The country aims to become the first 

in the world that is entirely wireless, with 

broadband access ports located throughout 

the island. Almost half of the top 100 IT 

companies in Asia have a presence in Taiwan. 

According to the International Monetary 

Fund, Taiwan’s economy is now the 26thlargest 

in the world. In 2010, it was ranked 

13th in global competitiveness rankings 

(World Economic Forum). 

5

INTRODUCTION 

WHY Taiwan? (CONTINUED) 

The Country at a Glance 

Full name: Republic of China (Taiwan) 

Capital: 

Taipei 

Other main cities: Taichung, Kaohsiung 

Area: 

36,188 sq. km/13,972 sq. miles (roughly the size of Wales) 

Population: 23.03 million (2010) 

Major languages: Mandarin Chinese (official language), Min Nan Chinese (Taiwanese) 

and Hakka. English and Japanese are also widely spoken 

Ethnicities: Han Chinese and indigenous minority of Taiwanese aborigines 

Life expectancy: 73 years (men), 79 years (women) 

Major religions: Taoism, Buddhism, Christianity 

Monetary unit: New Taiwan dollar (NT$) 

Nominal GDP: US$427 billion 

GDP per capita: US$19,155 

World Bank ease 33 

of doing business 

ranking: 

A leading choice for investors 

Taiwan’s strategic location is one of its most 

significant advantages for international 

investors. It is ideally situated adjacent 

to China and within easy reach of major 

commercial centres and ports in the ASEAN 

(Association of Southeast Asian Nations) 

region. For example, the sailing time from 

Taiwan’s largest port, Kaohsiung, to five of 

the largest Asia-Pacific ports (Hong Kong, 

Manila, Shanghai, Tokyo and Singapore) 

is just over two days. This makes Taiwan 

a favoured choice for headquarters in the 

Asia‐Pacific region, as well as R&D facilities. 

With direct flights having been introduced 

in 2008, travellers can now fly from Taiwan 

to major cities in China with a journey time 

of just one to two hours. 

The continuing liberalisation of links across 

the Taiwan Strait means that foreign 

companies are increasingly choosing Taiwan 

both as a market in its own right and as a 

stepping stone into China. Taiwan signed 

the Economic Cooperation Framework 

Agreement (ECFA) with China in 2010 

to reduce tariffs and commercial barriers 

6

etween the two markets. This is expected 

to boost bilateral trade significantly. 

Taiwan’s pro-investment policies and 

incentives are another major pull for 

investors. Free competition is encouraged 

and there are price controls only on basic 

necessities. Qualified foreign companies 

can obtain listings on the Taiwan stock 

market by listing their shares or issuing 

Taiwan depositary receipts. The Taiwanese 

government encourages mergers and 

acquisitions that serve the public interest 

and protection is provided to foreign 

patents, trademarks and copyrights. 

Since Taiwan joined the World Trade 

Organisation in 2002, it has opened up its 

domestic market to international investment 

and there are now very few industries that 

are closed to foreign investors (talk to 

UKTI Taiwan for more details). Around 300 

UK companies already have a significant 

presence in Taiwan, including HSBC, 

Standard Chartered Bank, Barclays, Arup 

and Mott Macdonald. UK retailers have been 

well-received, with fashion labels such as 

Burberry, Vivienne Westwood, Paul Smith, 

Dunhill, Aquascutum, Ted Baker, Gieves 

& Hawkes, Oasis and French Connection 

all gaining a foothold in the marketplace. 

Smaller, specialist UK companies have also 

invested in Taiwan, including suppliers to the 

vast semiconductor industry and specialist 

chemical company, Epichem. 

The Taiwanese government is actively 

promoting the development of six 

emerging industries: biotechnology; green 

energy; culture and creativity; medicine 

and healthcare; tourism and high-end 

agriculture. It is also focusing on four 

“intelligent” industries: smart electric 

vehicles; smart green buildings; cloud 

computing and patent commercialisation. 

There are incentives available to attract 

foreign and domestic investors in these 

priority sectors. 

You can find more information on the 

Taiwanese government’s Invest in Taiwan 

website at http://investtaiwan.nat.gov.tw/ 

library/main_eng_general.jsp 

Specific details of key investment 

opportunities in Taiwan are listed on 

page 10, under ‘Opportunities in Taiwan 

for UK companies’. 

7

INTRODUCTION 


Strong bilateral trade 

Most of the world, including the UK, does 

not recognise Taiwan as a sovereign entity 

separate from China, due to the political 

disagreement between the two. This has 

led to diplomatic isolation for Taiwan, but, 

despite this, the country enjoys a strong trade 

and investment relationship with the UK. 

Exports 

Taiwan is the UK’s 44th-largest export 

market. Only two other countries in Europe 

export more to Taiwan. In 2010, UK 

exports to the country were worth £1.05 

billion, up 40 per cent on 2009. The UK’s 

principal exports to Taiwan are: electrical 

machinery; beverages; industrial machinery 

and equipment; metalliferous ores and 

metal scrap; medicine and pharmaceuticals. 

Inward investment 

There are currently around 180 Taiwanese 

companies with an active presence in 

the UK. In 2009/10, 13 more Taiwanese 

firms established a presence in the UK, 

including specialists in ICT, biotechnology 

and healthcare. This helped to create 

and safeguard over 200 jobs. Seventy 

per cent of all Taiwanese investment in 

Europe comes to the UK and nine of 

Taiwan’s leading financial institutions are 

represented here, including the Bank of 

Taiwan, the Central Bank, the Financial 

Supervisory Commission, Chang Hwa 

Commercial Bank and SinoPac Securities. 

Imports 

Imports from Taiwan to the UK were worth 

£2.9 billion in 2010, up 38 per cent on the 

previous year. Taiwan is the 32nd-largest 

supplier of goods to the UK. The UK’s 

principal Taiwanese imports are: office 

machinery and automatic data processing 

systems; telecoms and sound recording/ 

reproducing equipment; electrical machinery 

and miscellaneous manufactured articles. 

8

uk trade (goods only) with taiwan 2003-2010 (£ thousands) 

2003 2004 2005 2006 2007 2008 2009 2010 

UK exports 903,977 952,909 944,892 912,853 938,618 836,298 750,472 1,048,840 

UK imports 2,254,791 2,395,505 2,267,258 2,390,453 2,421,774 2,482,862 2,095,982 2,892,369 

TOP TEN UK importS OF GOODS TO taiwan IN 2010 (£ MILLIONS) 

Item 2010 

Telecoms and sound recording and reproducing equipment 597 

Electrical machinery and appliances 313 

Office machines and adp machines 272 

Road vehicles (including air cushion vehicles) 271 

Miscellaneous manufactured articles 251 

Manufactures of metal 230 

General industrial machinery and equipment 97 

Power-generating machinery and equipment 77 

Professional, scientific and controlling instruments 67 

Furniture and parts thereof; bedding, mattresses etc 59 

TOP TEN UK EXPORTS OF GOODS TO taiwan IN 2010 (£ MILLIONS) 

Item 2010 

Metalliferous ores and metal scrap 123 

Beverages 110 

Power-generating machinery and equipment 95 

Medicinal and pharmaceutical products 90 

General industrial machinery and equipment 64 

Machinery specialised for particular industries 58 

Electrical machinery and appliances 57 

Miscellaneous manufactured articles 43 

Professional, scientific and controlling instruments 38 

Iron and steel 36 

Source: BIS analysis of HM Revenue & Customs data 

9

INTRODUCTION 


Opportunities in Taiwan for UK companies 

UK Trade & Investment (UKTI) has identified 

significant opportunities in the following 

sectors in Taiwan: 

• Aerospace – Taiwanese authorities plan 

to increase aviation-related investment 

to £666 million by 2013, with the total 

value of annual aerospace production 

expected to reach £2 billion by that 

year. Taiwan’s Ministry of Transportation 

and Communications (MOTC) is keen 

to develop the aerospace industry 

and upgrade the capability for local 

manufacturers to carry out Original 

Equipment Manufacturing (OEM) work 

for international aerospace companies. 

• Agriculture – The Taiwanese government 

is investing £500 million in agriculture 

and rural development by 2012 as 

part of its High-End Agriculture and 

Health Excellence Programme. This 

will concentrate on food safety and 

traceability, genetic technology, leisure 

and floral exports. There are opportunities 

for UK companies in: marketing and 

consultancy; food safety and traceability; 

genetics and animal welfare; and 

orchid‐growing joint ventures. 

• Clothing and accessories – Italian and 

French designer labels dominate the 

Taiwanese market, while the market for 

young girls’ fashion is strongly influenced 

by Japanese and Korean styles and 

trends. Due to the increasing demand 

for quality products, there are 

opportunities for UK companies in 

contemporary men’s and women’s wear, 

premium accessories and sportswear. 

• Telecommunications – Taiwan has one of 

the most advanced telecommunications 

sectors in Asia. The mobile and wireless 

communications market is dominated by 

three key players – Chunghua Telecom; 

Taiwan Mobile and FarEastone – which 

are keen to expand into telehealth, 

cloud computing and smart grid. The 

fourth player, VIBO Telecom, which 

entered the market after the other three, 

hopes to distinguish itself by developing 

innovative business models in the fields 

of voice and data transmission. 

• Construction – The Taiwanese government 

has announced a number of large-scale 

public infrastructure projects, which will 

generate opportunities for UK companies 

over the next eight years. The main 

projects are: rapid transit networks in 

Taiwan’s main cities; railway mainline 

upgrades; Kaohsiung Free Port and 

Eco‐Park; the Asia‐Pacific Maritime 

and Air Logistics Centre in Taichuang; 

Taoyuan International Air City; urban 

regeneration and rural revitalisation 

projects across the country; and an 

island‐wide sewage system. 

10

• Creative industries – The expansion of 

the Cultural & Creative Industries (CCI) 

in Taiwan is a priority area and is one 

of the six key emerging sectors selected 

by Taiwanese authorities for national 

development. There are estimated to be 

over 49,450 CCI businesses in Taiwan, 

providing some 195,160 jobs. The 

Taiwanese government is investing more 

than £107.7 million under the Creative 

Taiwan framework. This is creating 

opportunities for UK companies in: 

product design, incorporating packaging 

design/industrial design and branding 

counselling services; architectural design 

and planning; creative education and 

training; and the experience economy, 

tied in with digital content development. 

• Education and skills development – Due 

to its relatively small geographical area 

and short supply of natural resources, 

Taiwan’s economic progress hinges 

largely on its ability to develop human 

resources. It is therefore strongly 

committed to the improvement of 

education and skills. Under the Intelligent 

Taiwan project, launched in 2009, a total 

budget of £6.64 billion will be allocated 

to this by 2016, covering 13 major 

individual project areas such as Englishlanguage 

learning, Continual Personal 

Development (CPD), IT education, 

digital learning, vocational training and 

teaching-quality improvement in higher 

education. This is creating outstanding 

opportunities for UK companies active in 

these areas. 

• Electronics, semiconductors and display 

– Taiwan leads the world in the 

production of PCs, notebook PCs, Soho 

routers, cable modems, optical disk 

drives, modems, switches, hubs and 

WLAN, as well as being a key player in 

mobile handset production. Taiwanese 

ICT companies mainly use China as their 

manufacturing base, keeping their 

headquarters, R&D and sales departments 

in Taiwan. Taiwan has a worldwide share 

of over 90 per cent of the OEM/ODM 

(Original Design Manufacturer) market. 

It also dominates the semiconductor 

chip supply chain. There are opportunities 

for UK companies in cloud computing, 

e-health and mobile health, green IT, 

telematics, software applications on 

mobile devices and WiMAX. 

• Environment – As one of the most 

densely populated islands in the world, 

Taiwan’s usable land area is very limited. 

The Taiwanese government spends 

around £14 million a year on tackling 

soil and groundwater contamination 

and this is set to double over the next 

few years, adding to investments by 

the private sector. Taiwan is actively 

seeking international partners with 

expertise in this field. In addition, 

11

INTRODUCTION 


the Taiwan Environmental Protection 

Administration (EPA) focuses on five key 

areas: promoting sustainability; reducing 

carbon emissions; recycling; eliminating 

pollution and promoting healthy, 

sustainable lifestyles. 

• Financial services – Taiwan’s financial 

services industry, which accounts for 

10 per cent of its GDP, has changed 

greatly in the past couple of decades, 

becoming international and liberalised. 

Currently, there are 15 financial holding 

companies and 37 domestic banks in 

Taiwan (3,264 branches in total). Thirty 

two foreign banks have been granted 

licences to date, and have established 

around 140 branches in Taiwan. Some 

39 securities investment trust enterprises, 

23 non-life insurance companies and 

29 life insurance companies currently 

do business in Taiwan. UK financial 

services firms active there include: HSBC, 

Standard Chartered Bank, Barclays, 

Schroders, Aberdeen, PCL Life and 

First-Aviva (a joint venture between 

First Financial Holding and Aviva). High 

rates of savings and ongoing financial 

liberalisation make Taiwan an attractive 

market for capital. There are opportunities 

for UK companies in wealth management, 

foreign currency securities exchange, 

pension fund management, public private 

partnership and financial services training. 

• Food and drink – Food and drink is the 

fifth-largest industry in Taiwan and one 

of its fastest-growing sectors. Some 40 

per cent of goods consumed in Taiwan 

are imported. The continued expansion of 

‘upmarket’ supermarkets on the island has 

prompted importers to look further afield 

for value-added products, particularly to 

European countries. Currently, over 80 

per cent of the items offered by these 

supermarkets are imported, creating 


ready-to-eat food and drinks; alcoholic 

beverages; confectionery; organic 

products and health foods. 

• Healthcare – Taiwan imported around 

£1.1 billion of medical devices in 

2010. There are many opportunities 

for UK companies supplying high-end 

pharmaceutical products and medical 

equipment. There are also opportunities 

in healthcare informatics/telecare services 

and long-term care provision for the 

elderly and disabled, as Taiwan is an 

ageing society. 

• Low carbon economy – Over the next 

five years, the Taiwanese government 

will invest more than £50 billion in 

promoting the green economy. Fifty 

pilot low carbon communities will be 

selected by the end of 2011 and six low 

carbon cities by 2014, as part of a plan 

to reduce carbon emissions and gradually 

12

INTRODUCTION 


turn Taiwan into a low carbon nation. 

By 2020, the island will be divided 

into four low carbon living spheres in 

northern, central, southern and eastern 

Taiwan. There are opportunities for UK 

companies involved in: green energy, 

energy conservation installations and 

industry support (solar PV, LED PV 

lighting, wind power, biomass, hydrogen 

and fuel cell), energy communication and 

information and electric vehicles. 

• Marine – Taiwan’s yacht industry is 

export-oriented and imported hardware 

components and accessories are widely 

used in finished yachts. Potential 

opportunities for UK companies include: 

hardware components and accessories/ 

auxiliaries; naval architecture/exterior and 

interior design; deck hardware; energy 

saving and green power; and innovative 

superyacht equipment and services. 

• Transport – The Taiwanese government 

has announced 12 prioritised public 

construction projects, with a total 

budget of £66.5 billion over the next 

eight years. The first priority is to build 

a fast and efficient island-wide 

transportation network. There are 


consulting engineering, signalling, 

station design and rolling‐stock parts. 

For more details on these and other 

commercial opportunities, talk to UKTI 

Taiwan. 

• Power – Taiwan recognises the 

importance of developing more 

green‐energy projects and welcomes the 

input of UK renewable energy suppliers. 

There are opportunities for companies 

that specialise in offshore wind power, 

biomass and marine energy. There are also 

significant opportunities for consultants 

specialising in energy privatisation. 

14

Market strengths 

These are the essential facts that companies doing business in Taiwan need to know: 

• Taiwan is the world’s biggest manufacturer of computer-related products and 

semiconductors. 

• The World Economic Forum ranks Taiwan eighth in the world for R&D and 

13th (of 133 economies) for global competitiveness. 

• Taiwan’s economy grew by 10.8 per cent in 2010 – the strongest annual growth 

for more than 20 years. 

• Taiwan is strategically located at the heart of the Asia Pacific, around 90 miles 

off the coast of mainland China and within easy reach of all major ASEAN 

commercial centres. 

• Since joining the World Trade Organisation in 2002, Taiwan has opened up its 

domestic market to international investment. 

• Taiwan has a strong trade and investment relationship with the UK – only two other 

European countries export more to Taiwan than the UK. Imports to the UK from 

Taiwan were worth some £2.9 billion in 2010. 

15

INTRODUCTION 

ABOUT THIS BUSINESS GUIDE 

The main objective of this Business Guide 

is to provide you with basic knowledge 

about Taiwan – an overview of its economy, 

business culture and potential opportunities 

and an introduction to other relevant issues. 

Novice exporters, in particular, will find it 

a useful starting point. Further assistance 

is available from the UKTI team in Taiwan. 

Full contact details are available at the end 

of this Guide. 

The Taiwan Business Guide is intended 

to provide general business advice and 

should not be used as a substitute for 

market research, due diligence, or legal 

and professional services. 

About UK Trade & Investment 

UK Trade & Investment (UKTI) is the 

government department that can help 

you achieve your international business 

potential. We combine the national 

resources of the Department for Business, 

Innovation & Skills (BIS) and the Foreign 

& Commonwealth Office’s (FCO) global 

network of Trade Development Staff, to 

help you successfully win business overseas. 

We treat every business as an individual 

– that’s why we provide a tailored service, 

with specialist support covering a wide 

range of industries. 

Our capacity-building services can make a 

real difference to your business at a very 

reasonable price. To use our services, your 

firm may need to meet certain eligibility 

criteria. Your International Trade Adviser 

(or equivalent person in Scotland, Wales 

and Northern Ireland) will be able to 

explain in more depth what these criteria 

are and advise you on costs. 

For more information, visit www.ukti.gov.uk 

16

RESEARCHING THE MARKET 

WHERE TO BEGIN 

Doing business with Taiwan 

may seem rather daunting for 

those new to the market, but 

taking a strategic approach 

is the key. 

Companies should conduct 

reliable research before 

venturing into business in any 

new territory and Taiwan is 

no exception. Good research 

saves money and improves 

efficiency and performance 

right from the start. 

Desk research 

General introductory business information 

about Taiwan is readily available and 

companies can obtain a reasonable amount 

of preliminary insight through desk research. 

Economic research and sector analysis 

can be obtained from a large number of 

leading consultancies, research agencies and 

public‐sector trade promotion organisations. 

Furthermore, the increasing use of 

e-commerce and B2B websites in Taiwan 

has made it possible to identify, and gain 

access to, potential partners across the 

globe. A good place to start is the UKTI 

website, www.ukti.gov.uk, which provides 

detailed country and sector information. 

Registration is free and offers additional 

benefits, such as access to business 

opportunity alerts and information updates. 

17


WHERE TO BEGIN (Continued) 

Consultation and bespoke research 

You should not rely solely on desk research. 

Websites and online materials can be 

out‐of-date and the quality and reliability 

of content varies widely. Sometimes 

you may simply be unable to find the 

information you’re looking for. This is 

why it is essential to verify initial research 

findings and conduct further investigations. 

Often this requires you to map out a 

bespoke research brief with the help of 

specialists, exploring what additional 

information you might need to make an 

effective entry into the market and how 

you can make the contacts vital to success. 

UKTI offers a range of support services to 

UK businesses interested in researching the 

Taiwanese market. 

Speaking to an expert 

UKTI provides support for UK companies 

through a network of International Trade 

Teams based in the English regions. UKTI 

services are also available to companies in 

Scotland, Wales and Northern Ireland. 

To arrange a consultation with your 

local International Trade Adviser, call 

+44 (0)20 7215 8000 or use the database 

at www.ukti.gov.uk 

Overseas Market Introduction Service 

The Overseas Market Introduction Service 

(OMIS) is a UKTI service available to 

companies interested in finding out more 

about an overseas market. In Taiwan, it can 

assist you by undertaking tailored research 

using UKTI’s extensive network of dedicated 

researchers based across the country. 

OMIS can provide: 

• Market research and analysis 

- Sector reports 

- Market initiatives 

- Regulatory environment 

- Market opportunities 

• Identification of local contacts 

- Agents 

- Distributors 

- Suppliers 

- Potential partners 

• In-market activities 

- Meeting arrangements 

- Event organisation, such as workshops, 

seminars, receptions, promotional 

activities and product launches 

- Media relations and publicity 

- Official premises and facilities 

For more information about how OMIS 

could help you in Taiwan, please contact 

your International Trade Adviser. 

18 18

Events and seminars 

UKTI organises events, seminars and 

workshops in the UK and Taiwan, covering 

a wide range of business interests and 

issues. Not only do these inform companies 

about business opportunities and offer the 

latest market information, they also provide 

a valuable platform for networking and 

sharing experiences with like-minded peers, 

not to mention regular access to visiting 

Taiwanese delegations. 

Sign up to a forthcoming event by visiting 

www.ukti.gov.uk 

Market visits and trade missions 

Visiting Taiwan is an invaluable part of the 

process of market entry. You will experience 

the marketplace first-hand, and make the 

contacts necessary to do business. This is 

essential, but it will be much more effective 

with careful planning. 

UKTI organises regular trade missions 

to Taiwan where you can benefit from 

group activities, in addition to your own 

programme. 

OMIS can be used to support visits, 

providing bespoke meeting arrangements 

with appropriate potential partners, 

agents and distributors, or with relevant 

government officials. 

Questions to ask yourself before 

you begin: 

• What are our business’ unique selling 

points? Is there likely to be a market 

for our product or service in Taiwan? 

• Are there any legal barriers to our 

business model? 

• Whereabouts in Taiwan should we 

start? 

• Do we have sufficient resources 

(management time, project finance 

and expenses) to fund our Taiwan 

project? 

• Who will be leading the project within 

our company? 

• Do we need to work with a partner 

in Taiwan to succeed? If so, can we 

communicate effectively with them? 

• Have we evaluated business 

risks (such as protecting our IP) 

and conducted research and due 

diligence? 

• Do we know how to secure payments 

and get the right quality products? 

It is unlikely that you will have the 

answers to all these questions at the 

outset and these “knowledge gaps” 

should form the basis of further research 

and investigation. 

19


HOW WE CAN HELP YOU 

UKTI provides a wide range 

of trade development 

services designed to help 

UK companies succeed 

in international markets. 

Some of these services are 

provided at zero or heavily 

subsidised cost. All are 

delivered by experts with 

extensive experience of 

overseas trade and detailed 

knowledge of the global 

marketplace. If you are 

considering doing business 

in Taiwan, talk to us about 

how we can help you achieve 

your goals. 

Overseas Market Introduction Service 

(OMIS) is a chargeable UKTI-led, tailored 

service to access market and industry 

information, identify potential contacts or 

assist in planning an event. 

Passport to Export provides new and 

inexperienced exporters with the training, 

planning advice and ongoing support they 

need to succeed overseas. 

Gateway to Global Growth is a free service 

to experienced exporters. It offers a strategic 

review, planning advice and support to help 

companies build on their previous success 

and develop new overseas markets. 

Events and seminars are held across the UK 

and Taiwan. They include specific sectorbased 

activities. 

Trade missions are organised to help 

UK companies visit the market they’re 

interested in and talk face-to-face with 

prospective business partners. UKTI also 

organises missions in the UK to allow 

overseas delegates to meet with potential 

UK partners or investors. 

Business opportunities can be emailed 

directly into your in-box, highlighting 

hot leads in your chosen overseas market. 

Companies can sign up for this free service 

by visiting www.ukti.gov.uk 

20

Export Communications Review (ECR) 

assesses the way companies communicate 

with overseas customers and makes practical 

recommendations for improvement. The 

service is managed for UKTI by the British 

Chambers of Commerce. 

Export Marketing Research Scheme (EMRS) 

offers support, advice and grant funding 

to eligible companies wishing to research 

a potential export market. The service is 

managed for UKTI by the British Chambers 

of Commerce. 

To contact UKTI in Taiwan directly: 

UKTI Taiwan 

British Trade & Cultural Office 

26F, 9-11 Song Gao Road 

Taipei, 11073 


Tel: +886 (2) 8758 2088 

Fax: +886 (2) 8758 2050 

Email: info.taipei@fco.gov.uk 

http://ukintaiwan.fco.gov.uk 

FCO Country Updates provide authoritative 

analyses of emerging markets and identify 

key issues relevant to UK businesses. The 

updates are compiled by British embassies 

across the world, which have access to 

high-level government and business 

contacts. www.fco.gov.uk 

For more information on any of these 

services, please contact your local 

International Trade Team. 

21

Market Entry 

Choosing the right LOCATION 

Geography 

Taiwan is located 100 miles across the 

Taiwan Strait from mainland China, 

between Japan and the Philippines. It is an 

island nation, comprising the main island 

of Taiwan, along with Penghu, Kinmen and 

Matsu. Taiwan is 250 miles long and 88 

miles across – roughly the size of Wales. 

A rugged mountain range, the second 

highest in Asia after the Himalayas, covers 

more than half of the main island. The 

tallest mountain is Yushan, or “Jade 

Mountain”, which rises to 12,966 feet 

(3,952 metres) above sea level and stands 

at the heart of Yushan National Park. 

Approximately 60 per cent of Taiwan is 

covered by forest. Having such a limited 

usable land area makes it the second most 

densely populated country in the world. 

Climate 

The climate of Taiwan is sub-tropical, 

except for the extreme south which is 

tropical. Occasionally, typhoons hit the 

island during May to September. Apart 

from this, Taiwan’s weather is temperate, 

with average temperatures of 22°C 

(summer temperatures are around 35°C 

in July; winter temperatures are around 

12°C in January). 

Centres of business 

Taiwan has five special municipalities 

(Taipei, Xinbei, Taichung, Tainan and 

Kaohsiung), which are home to more than 

13.7 million residents. The most important 

commercial centres are Taipei, to the north, 

and Kaohsiung to the south. 

Taipei is the capital of Taiwan and the 

country’s political, economic and cultural 

heart. The Taipei metropolitan area (which 

includes Taipei, Xinbei and Keelung) has 

a population of over 6.7 million people. 

The city is served by two airports, Taipei 

Songshan and Taiwan Taoyuan, and has 

high-speed rail and road links to the rest 

of the island. Taipei also has a modern and 

efficient public transport system, with five 

metro lines in operation. Many of Taiwan’s 

leading companies have their headquarters 

there, including ASUS, Chunghwa Telecom, 

Mandarin Airlines and Tatung. For more 

information visit http://english.taipei.gov.tw 

Kaohsiung is the second-largest city 

in Taiwan, with a population of 2.9 

million people. It is one of five special 

municipalities in Taiwan and a centre for 

manufacturing, refining, shipbuilding, 

light and heavy industries. Kaohsiung 

International Airport is the second-largest 

airport in Taiwan, while its port is the 

country’s biggest. The city was host of 

the 2009 World Games and is home to 

the Republic of China navy. 

22

Taichung is situated in west-central 

Taiwan. The city’s Industrial Zone has 

the World Trade Centre building as its 

focal point, which plays host to national 

and international exhibitions. Taichung is 

home to Giant Bicycles and Nike’s Asian 

design centre and, with a population of 

2.6 million, is the third-largest city in the 

country. For more information visit 

http://english.taichung.gov.tw/internet/english 

Hsinchu Science and Industrial Park, 

located in Hsinchu City in the north, 

is one of the world’s leading centres of 

semiconductor manufacturing. More 

than 400 high-tech companies have a 

presence there, including the world’s 

top two semiconductor manufacturers, 

Taiwan Semiconductor Manufacturing 

Company and United Microelectronics 

Corporation. Taiwan has the world’s 

highest concentration of 12-inch 

wafer‐producing fabs, most of which 

are located at the Park. Close by are 

National Chiao Tung University and 

National Tsing Hua University. 

23

Market Entry 

Establishing a presence 

Direct sales into Taiwan can be difficult. 

For most UK companies, it is more effective 

to approach the market through local 

business partners (agents and distributors), 

who have the ability to distribute and 

provide locally based technical support. 

Licensing and franchising are also 

increasingly popular options. 

It is possible to set up a company office, 

branch office, representative office, 

job‐site office or joint venture in Taiwan. 

Mergers and acquisitions are also an 

option, although you need to be aware of 

fair trade and anti-trust issues. Refer to 

page 26 for full descriptions of each of 

these options. If you are planning to do 

business in Taiwan, consult a lawyer about 

the possible options and how you plan 

to conduct the operation. UKTI can help 

you to identify local and international law 

and consultancy firms who can help. We 

can also provide validated lists of agents/ 

potential partners, key market players and 

potential customers; approach contacts on 

your behalf to establish if they are interested 

in working with you; as well as arranging 

appointments and organising events. 

Agents and distributors 

An agent is a company’s direct 

representative in a market and is paid 

commission, whereas a distributor buys 

products from the manufacturer and sells 

them on to customers. The difference 

between the cost of purchasing products 

and selling them on (the profit) forms the 

distributor’s income. 

Entering a market by working with an agent 

or distributor can have several advantages. 

It reduces time and costs, and companies 

gain the local knowledge and networks of 

the agent/distributor in question. However, 

there are also some drawbacks. Employing 

a third party results in an additional cost 

to your products and you may also lose 

some control and visibility over sales and 

marketing. It can also have implications 

for intellectual property rights protection, 

increasing the risk of your product being 

copied or counterfeited. 

In Taiwan, the Statute for Encouraging 

Foreign Profit-Seeking Enterprises to 

Establish Distribution Centres was passed 

in 2001. This sets out the regulations for 

establishing international distribution 

agreements and logistics centres and 

authorises tax incentives for foreign 

investors. The Taiwanese Civil Code and the 

Fair Trade Law govern the management of 

distributorships, while agency agreements 

are governed by the Civil Code alone. You 

need to ensure that you organise tax affairs 

correctly, as agents are considered business 

agents for income-tax purposes if they sign 

contracts, accept purchase orders and store 

and dispatch goods on behalf of a foreign 

company. A business agent is subject to 

24

Taiwanese taxes and must file tax returns 

on behalf of the foreign company. 

Given these considerations, you need to 

select agents and distributors carefully. 

Your local UKTI office can advise you on 

how to commission a tailored report for 

your specific needs and can also provide a 

list of the best potential partners. A visit 

to Taiwan will enable you to meet some 

of them and appoint a local contact. 

Suggested questions to ask agents/distributors 

are listed below. You should also conduct 

due diligence to verify this information. 

Background 

• Company size, history and ownership 

(private or state-owned) 

• Quality and quantity of the sales force 

• Customer feedback and trade/bank 

references 

Distribution channels 

• Regional coverage 

• Types of outlets covered and frequency 

of visits 

• Transportation and warehousing facilities 

Are they right for you? 

• Does the agent/distributor have a 

genuine interest in representing your 

product? 

• Can they benefit from actively promoting 

your interests (is it a win-win)? 

• Do they also represent any competing 

companies/products? 

• Can you communicate effectively with 

your counterpart? 

Once a working relationship has been 

established, the agent/distributor needs to 

be managed actively by you: 

• visiting as regularly as is practicable at 

a senior management level. This shows 

interest in, and commitment to, the 

agent and the market. It will also provide 

you with an opportunity to learn about 

conditions in the market and see how 

your products are doing 

• working closely with the agent to show 

them how they can profit from your 

products 

• helping to prepare marketing and sales 

plans for the agent 

• providing regular training for sales staff 

and after-sales training for technical staff 

in the UK 

• linking performance to incentives and 

agreeing milestone targets. 

There is additional guidance on working 

with Taiwanese partners in later sections of 

this Guide. 

25

Market Entry 

Establishing A Presence (CONTINUED) 

Licensing and franchising 

Licensing and franchising are alternative 

approaches to selling products and services, 

but the exact business model will vary, 

depending on the sector and company. 

A business may license the use of its 

copyright, trademark, patent, technological 

knowledge and other intellectual property 

rights to manufacture and sell products or 

render services. Such licences need not be 

government-approved, although patent and 

trademark licences must be reported to the 

Taiwan Intellectual Property Office. UKTI in 

Taiwan can provide detailed guidance on 

this, and franchising options. 

Establishing a permanent presence 

Having a permanent in-market presence 

can have several benefits, including: 

• demonstrating commitment 

• cutting out the ‘middle man’, providing 

direct access to the end customer/ 

supplier 

• giving direct control over corporate 

strategy and activities 

• enabling trading in the local currency 

and easing the conduct of business 

transactions 

• fulfilling a legal requirement to have a 

permanent presence (relevant in certain 

business activities and sectors). 

have a Taiwanese partner. However, this 

has now changed, thanks to the Taiwanese 

government’s continued efforts to ease 

regulations and encourage more foreign 

investors in most industry sectors, such as 

consumer goods, banking and retailing. 

For sectors like infrastructure, defence and 

safety‐related industries, UK companies 

would still need a local partner. Please 

contact UKTI Taiwan for advice. 

Deciding what constitutes an appropriate 

legal entity for your business depends on 

your intended scope. There are a number 

of legal structures that allow foreign 

investors to do business in Taiwan, as 

outlined on page 28. Each has its own 

advantages, restrictions and drawbacks, 

so it is essential to choose the option best 

suited to your aims. 

It is usually more difficult to alter a 

business structure once a legal entity has 

been incorporated or established, so it is 

essential to seek professional advice during 

the early stages of planning. UKTI can 

offer dedicated one-to-one consulting 

and incorporation services to assist UK 

companies establishing various kinds of 

permanent presence in Taiwan. Please 

contact us for more details. 

In the past, foreign investors who wanted 

to do business in Taiwan were required to 

26

Market Entry 


Legal structures 

Foreign investors in Taiwan can choose 

whether to set up a company office, a 

representative office, a branch office 

or a job-site office, according to their 

planned activities. A brief description 

of each option is provided below. The 

PricewaterhouseCoopers guide Doing 

Business in Taiwan (www.pwc.com/tw/en/ 

publications/doing-business-in-taiwan. 

jhtml) contains detailed information 

about setting up a business in Taiwan. 

Further information is also available from 

UKTI in Taiwan. 

Representative offices 

Representative offices are often the first 

step taken by foreign companies when 

establishing a permanent presence in Taiwan. 

They provide a vehicle through which the 

foreign investor can undertake activities 

such as market research, customer liaison 

and support. Representative offices can 

also organise business visits from company 

headquarters, which can make the process 

of obtaining business visas for visitors 

much easier. Public-relations work and local 

administration are also permitted. However, 

a representative office cannot conduct sales 

activities. This means they cannot sign 

contracts, receive income or issue invoices 

and tax receipts. Applications to establish 

a representative office should be made to 

the Taiwanese Ministry of Economic Affairs 

(MOEA, www.moea.gov.tw). 

Branch offices 

Foreign investors wishing to open a branch 

office must apply for a Certificate of 

Recognition and then obtain a Certificate 

of PSE (Profit-Seeking Enterprise) from 

the relevant Taiwanese government 

agencies. Special permits are required 

for certain types of businesses. For more 

details, contact the MOEA. Branch offices 

can be used for companies that do not 

plan to have their head office in Taiwan. 

There is no minimum working capital 

requirement if the branch’s activities relate 

to international trade, but the head office 

must remit sufficient funds to enable the 

branch to operate. It must also appoint 

a branch manager and a litigious and 

non‐litigious representative, who can either 

be Taiwanese citizens or foreign nationals. 

Company offices 

Foreign investors need to obtain approval 

from the MOEA’s Investment Commission 

to set up a company in Taiwan. Once 

approval has been obtained, it is possible 

for foreign investors, with the exception 

of those working in certain restricted 

industries, to establish an unlimited 

company, an unlimited company with 

limited-liability shareholders, a limited 

company, or a company limited by shares. 

28

Job-site offices 

Job-site offices are ideal for foreign 

investors who intend to contract longterm 

construction work in Taiwan (for 

example, foreign construction companies 

that undertake government projects 

there). A taxable, though not a legal, 

entity, job-site offices need only apply 

for business registration, as opposed to 

corporate registration. They are required 

to pay business tax and income tax and 

are permitted to make purchases and issue 

government uniform invoices. 

Joint ventures 

The term “joint venture” is not statutorily 

defined in Taiwanese law. In its broadest 

sense, a joint venture (JV) is a co-operation 

between two or more parties in a common 

undertaking. Usually this refers to an 

incorporated JV company, but in Taiwan it 

is acceptable for a JV structure to be one in 

which there are two or more distinct legal 

entities that maintain separate identities. 

In certain government contracts, for 

example, JV partners issue invoices and are 

paid separately, based on the percentage 

of participation. Each party files a tax 

return and pays its taxes separately. 

Mergers and acquisitions 

The Financial Institution Mergers Act and 

the Financial Holding Company Act govern 

consolidation among financial institutions 

in Taiwan. Other industries are governed 

by the Business Mergers and Acquisitions 

Act. Under certain circumstances, mergers 

may need to be submitted to Taiwan’s 

Fair Trade Commission. There may be tax 

incentives available if the proposed merger/ 

acquisition meets certain criteria. 

29

Market Entry 


Foreign firms wishing to invest in or merge 

with companies in Taiwan should contact 

the MOEA’s Investment Commission. 

Regulatory agencies 

For UK companies considering establishing 

a presence in Taiwan, the following 

regulatory agencies provide useful sources 

of information: 

• Ministry of Economic Affairs (MOEA): 

issues business laws and regulations. 

Agencies include the Department of 

Commerce, the Investment Commission 

and the Industrial Development Bureau 

www.moea.gov.tw 

• Bureau of Foreign Trade: an agency 

of the MOEA, responsible for executing 

trade policies and promoting trade 

www.trade.gov.tw 

• Taiwan Intellectual Property Office: 

for patent, trademark and copyright issues 

www.tipo.gov.tw 

• Financial Supervisory Commission: 

supervises banking, securities and 

insurance industries 

www.fsc.gov.tw 

• Ministry of Finance: administration 

of taxation and customs 

www.mof.gov.tw 

• Fair Trade Commission: competition 

policy and fair trade 

www.ftc.gov.tw 

• Food and Drug Administration: 

established on 1 January 2010 for the 

licensing and inspection of food and 

pharmaceutical products 

www.fda.gov.tw 

• Environmental Protection Administration: 

sets pollution control regulations and 

protects the natural environment 

www.epa.gov.tw 

• Council for Labour Affairs: administers 

labour policies and regulations 

www.cla.gov.tw 

• Invest in Taiwan Office: a ‘one-stop shop’ 

for companies looking to invest or register 

in Taiwan 

http://investtaiwan.nat.gov.tw/library/ 

main_eng_general.jsp 

30

Getting Started 

FINDING A CUSTOMER OR PARTNER 

Once you have identified the 

best market-entry option for 

your company in Taiwan, the 

next step is to find potential 

customers or partners. 

Tried and trusted methods include: 

• Overseas Market Introduction Service 

(OMIS) 

OMIS can tailor-make a list of potential 

customers, agents, distributors or partners 

and arrange a programme of meetings with 

them when you visit Taiwan. OMIS can also 

be used to arrange a seminar or productintroduction 

event in Taiwan, which can be 

an effective way of getting your message 

across to a number of potential customers. 

• Trade shows and exhibitions 

Trade shows and exhibitions take place in 

Taiwan throughout the year and can be an 

excellent way to meet potential customers 

face-to-face. Arranging appointments in 

advance with pre-identified contacts is 

essential if you want to make effective 

use of your time. 

• UKTI-supported trade missions 

UKTI supports a large number of trade 

missions to Taiwan, organised by trade 

associations and local chambers of 

commerce. They provide an excellent 

opportunity for businesses to visit the 

country to find out how business is done 

and generate valuable sales leads. 

32


Due Diligence 

Many of the problems that foreign companies 

encounter when doing business in Taiwan 

could have been avoided by carrying out some 

due diligence at the outset. 

There are different levels of due diligence, 

appropriate for different situations. If your 

sole interest is in exporting, the best proof 

of a Taiwanese company’s ability to pay is a 

letter of credit from the bank. If a company 

can produce this, you do not need to check 

its financial standing as the bank will already 

have done so. 

A very simple piece of due diligence is to 

obtain a copy of a company’s business 

licence. This will tell you the following: 

• the legal representative of the company 

• the name and address of the company 

• the amount of registered capital, which is 

also its limited liability 

• the type of company 

• the business scope 

• the date the company was established and 

the period covered by the licence. 

You should check that the information 

contained in the business licence matches 

what you already know and, if it doesn’t, 

then find out why. If you want to verify 

the information externally, you should go 

through the Commercial Department at 

the MOEA or a local lawyer. You will have 

more security if you know who the legally 

responsible person is, so find out who you 

are dealing with. 

The shareholders of the company are responsible 

for the amount of liability as stated as registered 

capital on the business licence. You can check 

whether or not the registered capital has been 

paid up by using a firm of accountants to get 

a Capital Verification Report. 

If you want to establish a business 

relationship that goes beyond exporting, 

you will need to carry out further research. 

It is not enough simply to obtain a copy of 

a company’s accounts, as they may not be 

accurate. Accounts in Taiwan are unlikely 

to be audited to the standards routinely 

expected in the UK, and companies may 

have different sets of accounts for different 

audiences, so it is advisable to use such data 

in conjunction with information obtained 

from elsewhere. 

Good-quality consultancy and assistance 

are available from firms resident in Taiwan 

and the UK. These companies can carry out 

operational, financial, legal and technical 

due-diligence checks, typically by looking 

at the actual operation of the business, 

and building up a more accurate picture 

by carefully interviewing people who work 

in and with the firm. UKTI has lists of 

consultancies based in the UK and Taiwan 

that can provide due-diligence checks on 

Taiwanese companies. 

33


Employing staff 

Taiwan has a motivated and highly 

educated workforce. Workers here will 

have undergone nine years of compulsory 

education, with extensive opportunities for 

higher education in the country’s colleges 

and universities. Taiwan is world-renowned 

for its research in physics, engineering, 

agriculture, medicine, biotechnology, 

literature and art history. Taiwanese 

workers are characterised by their diligence 

and interest in learning and development 

at every stage of their career path. 

Taiwan has faced labour shortages in 

recent years, due to the fast pace of 

economic growth. Consequently, it is 

keen to attract high-quality skills from 

overseas and has lifted any restrictions on 

employing foreign workers. By July 2009, 

foreign workers accounted for 3.2 per cent 

of Taiwan’s total workforce. 

The Labour Standards Act stipulates 

minimum standards for working conditions 

in Taiwan, including minimum wages, 

working hours, holidays and severance 

pay. The country has established a labour 

management committee whose aim is 

to promote good employer-employee 

collaboration and establish labour welfare 

schemes. More information is available 

at http://investtaiwan.nat.gov.tw/matter/ 

show_eng.jsp?ID=11&MID=3 

You will find details of labour-related 

health insurance, pensions and labour 

regulations in the PricewaterhouseCoopers 

guide Doing Business in Taiwan 

(www.pwc.com/tw/en/publications/doingbusiness-in-taiwan.jhtml) 

Recruitment channels 

There are several channels for recruiting 

staff in Taiwan, particularly web‐based 

channels given the high internet 

penetration in the country: 

• Advertise jobs to UK graduates on the 

UK’s official graduate careers website, 

www.prospects.ac.uk/taiwan_job_market. 

htm 

• Online job services, such as 

http://hirecruit.nat.gov.tw/english 

www.jobera.com and 

www.taiwanesecareers.com 

• Classified job adverts in English are 

available in English-language daily 

newspapers, such as The China Post, 

Taiwan News and Taipei Times 

• Other newspapers (some of which have 

English-language pages) include: United 

Daily News, China Times and Liberty 

Times 

• Trade media for key industry sectors, 

such as DIGITIMES, Business Today 

Weekly, International Trade Biweekly 

and Business Next. For industry-specific 

periodicals, please contact the relevant 

UKTI Commercial Officer in Taiwan 

34

• Recruitment companies such as Adecco 

have offices in Taiwan. (www.adecco. 

com.tw/eng). Local people tend to use 

websites to find jobs, such as 104 Job 

Bank (www.104.com.tw). 

• Contact the British Trade and Cultural 

Office, the British Chamber of Commerce 

or educational institutes. 

Recruitment process 

When you are recruiting in Taiwan, make 

sure that you carry out all the normal steps 

that you would if hiring in the UK. 

• Ensure that candidates’ technical and 

linguistic capabilities match their claims 

and that you hire staff at the right level 

for the role. 

• Carry out due diligence. This includes 

conducting personal background checks 

and checking all references before 

offering the position. 

• Offer appropriate remuneration. 

Taiwanese labour regulations stipulate 

that wages must not be less than the 

statutory minimum and must be paid at 

least twice a month, or in advance on a 

monthly basis. The Council for Labour 

Affairs is responsible for administering 

policies and issuing work permits for 

foreign professionals, www.cla.gov.tw. 

Talk to UKTI Taiwan for advice on 

appropriate salary levels for particular 

types of employment. 

Overseas training 

Offering employees the opportunity to 

train overseas is very attractive at all levels. 

Make sure that in return for providing such 

training, employees make a commitment 

to stay with your company for a specified 

period of time. 

A word of caution: A lot of smaller 

companies setting up an office in Taiwan 

may well just employ one person to deal 

with all aspects of running the business. 

Although this may be convenient and 

cost-effective, it might not be the best way 

to run your operation. If your employee is 

not familiar with the rules and regulations 

pertaining to running an international 

office or business in Taiwan, then you 

may soon have to deal with issues of 

non‐compliance, which could prove very 

costly. Moreover, having one person in 

control of all financial and legal aspects 

of the business is obviously risky. 

35


language 

Working hours 

Working hours in Taiwan are: 

9.00 to 18.00 Monday to Friday 

Public holidays 

Public holidays in Taiwan reflect 

both Chinese and Western 

influences. Traditional festivals 

(holidays) include: 

• Chinese New Year – Lunar New 

Year’s Eve and first three days of 

the first lunar month 

• Dragon Boat Festival – fifth day 

of the fifth lunar month 

• Mid-Autumn Festival – 15th day 

of the eighth lunar month 

Other official holidays include: 

• 1 January – Founding Day 

• 28 February – Peace Memorial 

Day 

• 4 April – Children’s Day 

• 5 April – Tomb Sweeping Day 

• 10 October – National Day 

Mandarin Chinese is the official business 

language of Taiwan. However, Chinese 

Traditional script is used rather than 

Chinese Simplified script – the latter only 

being used in mainland China. English is 

widely spoken. 

While high-level business meetings may be 

conducted mainly in English, your hosts 

will appreciate it if you use their language 

whenever possible. When speaking in 

English, remember to speak slowly and to 

repeat key points. In order to save face, 

your Taiwanese hosts will not necessarily 

say that they don’t understand something. 

Interpreters may be required for business 

meetings, particularly outside Taipei 

and other major cities. All important 

negotiations should be carried out with an 

interpreter present so as to avoid doubt. 

It is also advisable to have all written 

documents translated into Mandarin 

Chinese. UKTI can help you find a 

translator or interpreter. 

36


marketing 

To reflect the fast-paced nature of the 

Taiwanese marketplace, and its highly 

sophisticated media, your marketing 

strategy will need to be reassessed, 

polished and refined on a continual basis. 

Sales literature 

Trade shows and exhibitions are a good 

way of meeting potential new customers, 

but you still need to persuade them to 

buy your product. Sales literature is more 

effective if it’s in Mandarin Chinese as well 

as English and you need to decide what 

kind of advertising is appropriate. 

Product and service adaptations 

You may need to adapt your product or 

service to meet the needs of the Taiwanese 

market. Marketing research can help you to 

identify any adaptations you need to make. 

Branding 

There are no particular considerations 

concerning branding in Taiwan. You will 

need to check with the MOEA to see if 

the brand name or logo can be registered 

in Taiwan. Then, consult with experts in 

branding or advertising agencies who will 

be able to advise on the public perception 

of certain words or images. 

Sales promotion 

Companies that appoint local partners can 

usually be guided by them with regards to 

the type of advertising and sales promotion 

38

that would suit the launch of their 

product/s. UKTI in Taiwan can advise on 

the most appropriate venues to announce 

the launch or presence of UK goods and 

services in the country. 

The media 

Taiwan’s media is one of the freest in Asia. 

Laws which prohibit the promotion of 

independence from China or communism 

are not generally enforced. Consequently, 

there are hundreds of privately owned 

newspapers expressing different views, as 

well as multi-channel cable and terrestrial 

TV and more than 170 radio stations. 

According to Internet World Stats, there 

were more than 15 million internet users 

in Taiwan in June 2009 and there are 

plans to integrate telecoms, the internet 

and broadcasting by 2014. You may wish 

to work with local marketing specialists 

who will understand the most appropriate 

channels for reaching your target market. 

UKTI in Taiwan can provide contact details. 

more than 170 radio stations, including 

the Broadcasting Corporation of China, 

CBS Radio Taiwan International and the 

English-language station International 

Community Radio Taipei (ICRT). 

Newspapers 

Major daily newspapers include: United 

Daily News, China Times, Liberty Times, 

China Post, Taipei Times and Taiwan News. 

News agency 

Focus Taiwan is the English-language service 

of the state-run Central News Agency. 

Day-to-day communications 

As with the UK, business people in Taiwan 

communicate mainly via the telephone, 

mobile phone and emails. If you haven’t 

met with your contacts face-to-face, it is 

advisable to write a letter or send an email 

to introduce yourself. 

TV and radio 

The main commercial TV channels in 

Taiwan are China Television Company 

(CTV), Chinese Television System (CTS), 

Taiwan Television Enterprise (TTV) and 

Formosa Television (FTV). Cable TV news 

channels such as TVBS, CTiTV and ETTV 

are also influential. In addition, there 

is the Public Television Service (PTS), a 

non-profit public broadcaster. There are 

39


INTERPRETERS 

While English is widely spoken in 

international businesses in Taiwan, you 

will generally need to employ interpreters 

during formal meetings and negotiations 

to prevent any misunderstandings. 

There are two forms of interpreting. 

Consecutive interpreting means you speak 

and then your interpreter speaks: this is the 

usual form for meetings, discussions and 

negotiations. Simultaneous interpreting 

involves the immediate translation of your 

words as you speak them. This requires 

special equipment and can be expensive. It 

is generally used only for large seminars and 

conferences. Interpreting is a skill requiring 

professional training. Just because someone 

is fluent in English and Mandarin Chinese, 

it does not necessarily mean that they will 

make a good interpreter. 

If you are giving a speech or presentation, 

remember that the need to interpret 

everything will cut your speaking time 

approximately in half (unless using 

simultaneous interpreting). It is essential 

to ensure that the interpreter can cope 

with any technical or specialist terms in the 

presentation. If you are giving a speech, 

give the interpreter the text well in advance 

and forewarn them of any changes. 

40

To get the best out of your interpreter: 

• Hire a well-briefed professional 

interpreter. Though this is likely to be 

expensive, it will be money well spent. 

• Have your own interpreter available, even 

if your Taiwanese counterparts have one 

for their side. With your own interpreter, 

you should also be able to get some 

post-meeting feedback concerning the 

nuances of what was said (and – just as 

importantly – not said). 

• Try to involve your interpreter at every 

stage of your pre-meeting arrangements. 

The quality of interpretation will improve 

greatly if you provide adequate briefing 

on the subject matter. Ensure your 

interpreter understands what you are 

trying to achieve. 

• Avoid jargon, unless you know your 

interpreter is familiar with the terminology. 

• Listen to how your interpreter interprets 

what you have just said. If you have given 

a lengthy explanation but the interpreter 

translates it into only a few words, it may 

be that they have not fully understood. 

Or they may be wary of passing on a 

message that is too blunt and will not be 

well received by the audience. 

• Make sure that your message is getting 

through clearly and in a tone that will not 

cause resentment. 

A list of translators and interpreters is 

available on request from UKTI in Taiwan. 

• Speak clearly and evenly with regular 

breaks for interpretation. Don’t ramble on 

for several paragraphs without pause. Your 

interpreter will find it hard to remember 

everything you have said, let alone 

interpret all your points. Conversely, don’t 

speak in short phrases and unfinished 

sentences. Your interpreter may find it 

impossible to translate the meaning if you 

have left a sentence hanging. 

41

Business Issues and Considerations 

The Taiwanese market is a favourite among 

foreign direct investors. However, while the 

country’s thriving economy, liberalising 

marketplace and widespread use of English 

in business makes it an appealing choice 

for UK investors, there are some significant 

cultural differences and challenges to be 

aware of. 

Confucian values 

Taiwanese society operates according to 

Confucian values. These state that people 

should respect authority and the collective, 

behave virtuously, work and learn hard, 

avoid extremes and live moderately. Taiwan 

is a collectivist society. People treat others 

with respect regardless of their personal 

feelings and do not do anything to cause 

someone else personal embarrassment. You 

will find that, if you can demonstrate these 

qualities, you will be more successful in 

your business relationships. 

Face 

There is also the concept of “face” 

(mien-tzu), which is found across Asia. 

Taiwanese people strive for harmony in 

their business and personal relationships. 

To prevent loss of face, they will avoid 

confrontation or will tell others what they 

want to hear rather than tackling issues 

head on. For example, rather than say 

“no”, they might say “I’ll try.” This allows 

both the person making the request and 

the person turning it down to save face 

and maintain harmony in the relationship. 

Some Westerners can find this approach 

confusing. Try rephrasing the question in 

different ways so you can compare the 

answers you get. If you do cause someone 

to lose face, for example, by embarrassing 

them, you can restore their dignity by 

saying something like “Perhaps I didn’t 

explain myself clearly” or “I have done the 

same thing myself.” 

42


Business etiquette 

Guanxi (‘connections’) 

As in mainland China, Taiwanese business 

relationships rely on guanxi (pronounced 

gwan shee), which essentially means social 

or business connections based on mutual 

interest or benefit. Guanxi opens doors 

and smooths the business process. It is 

therefore essential to spend time getting to 

know your business contacts and building 

a strong relationship with them through 

regular and ongoing contact. 

You will find being introduced to a company 

by a trusted third party, such as the British 

Embassy, more effective than going in cold 

– UKTI in Taiwan can help you here. If you 

make a mistake in business, always own up 

to it and demonstrate what you are doing to 

put it right. 

Meetings 

Meetings in Taiwan are generally loosely 

structured and may not stick to the 

planned agenda. They are as much about 

building relationships as they are about 

discussing business, so be prepared to 

spend time on non-business topics. 

Meetings may extend well beyond the 

agreed time as Taiwanese business 

people regard concluding the meeting 

satisfactorily as more important than 

sticking to a particular timescale. It 

is worth remembering this if you are 

scheduling several meetings in one day. 

Your approach should be formal but 

friendly, although avoid making jokes as 

this could be interpreted as a lack of respect 

for your host. The hierarchical structure of 

Taiwanese companies means it is important 

to show respect for authority. Ideally, the 

most senior person in the team should enter 

the room first and greet the most senior 

Taiwanese representative. Always greet older 

or more senior people first. Make sure that 

you show due respect and use people’s 

titles correctly. Address people by their title 

and surname, unless you are invited to use 

their first name. If a person does not have 

a corporate or government title, use the 

honorific Mr, Miss or Madame, followed by 

their surname. Leaders should sit opposite 

one another around the table. 

Handshakes 

A handshake is the most common form of 

greeting when doing business in Taiwan. 

Handshakes are softer than in some other 

countries and your Taiwanese host may 

lower his eyes as a sign of respect. Men 

should wait for women to extend their 

hand first. Never use your index finger to 

point at somebody. 

Body language 

You should offer and receive documents 

with your right hand, and food with both 

hands. Avoid showing the soles of your feet 

or pointing your foot at your host when 

crossing your legs as this is considered rude. 

43


Business etiquette (CONTINUED) 

Attire 

Taiwanese people tend to dress smartly in 

business. Suits are recommended, or at least 

a jacket and tie. Tight skirts, low necklines 

and sleeveless tops should be avoided. 

Hierarchy 

Hierarchy is an important concept in 

Taiwan. Please refer to pg 43 for details of 

how you should conduct business meetings 

with due regard for peoples’ experience 

and seniority. 

Names and titles 

When addressing someone in business you 

should use their professional titles (professor, 

doctor, engineer) and honorific titles. 

Women in business 

Women are an important part of the 

Taiwanese business environment and there 

are no special considerations, other than 

that regarding handshakes. Businesswomen 

in Taiwan conform to the same types of 

formalities as men. 

Punctuality 

When engaged in a business relationship in 

Taiwan, you should ensure that delivery times 

are clear and that you act quickly to remedy 

any problems. You can confirm meeting times 

via email or phone, one day beforehand. 

Business cards 

Business cards are exchanged, using both 

hands, after the initial introductions have 

been made. You should have one side of 

your card translated into Mandarin Chinese 

and present it to your host with the 

translated side uppermost. Be sure to treat 

someone’s business card with respect. You 

should examine it before putting it away 

and never write on someone’s card in their 

presence. One good tip is to ask a question 

based on the information on the card. 

Communication style 

The Taiwanese style of communicating 

is indirect. They will take great care to 

avoid causing offence and, if they disagree 

with something, they will simply remain 

silent. You need to listen patiently to what 

is being said (and not said) and avoid 

becoming visibly frustrated or irritated. 

Allow plenty of time for negotiations and 

remain dignified throughout. Whereas in 

the UK brevity is valued, in Taiwan it may 

be interpreted as rudeness. 

Gift-giving 

Giving small gifts to business 

acquaintances is common in Taiwan. When 

visiting the country, it may be useful to 

bring a number of souvenir items, such as 

English bone china, company pens or silk 

ties to give away on suitable occasions. 

High-quality Scotch whisky would normally 

make a welcome gift for valued contacts. 

44

It is important that all gifts are carefully 

wrapped in quality paper - red, pink and 

yellow are considered auspicious colours, 

but white, blue or black should be avoided. 

There are certain cultural considerations 

to bear in mind. Do not give odd numbers 

of gifts, or four of anything, as four is 

considered unlucky. Also, try to avoid 

giving a clock or umbrella as a gift because 

they are associated with bad luck. 

The gift is likely to be refused at first as 

a gesture of politeness. Attempt to give 

the gift again, but do not force the issue. 

You should give and receive a gift with 

both hands and it is customary to leave 

it unopened when you are with the giver. 

Gifts should always be reciprocated at 

the same level – if not immediately then 

shortly afterwards. 

Dining 

Taiwanese people prefer to entertain in 

public places rather than in their home. 

If you are invited into your host’s home, 

therefore, you should consider it a great 

honour and behave appropriately. 

45


Intellectual property rights (IPR) 

After its accession to the World Trade 

Organisation in 2002, Taiwan set about 

bringing its intellectual property laws 

up to the standard of the Agreement on 

Trade-Related Intellectual Property Rights 

(TRIP). The administration of patent, 

trademark and copyright laws falls under 

the authority of the Taiwan Intellectual 

Property Office (TIPO), part of the MOEA. 

For detailed information, contact TIPO or 

UKTI in Taiwan. 

Taiwan Intellectual Property Office 

3F, 185 Hsinhai Road, Sec.2 

Taipei 10637 


Tel: +886 (2) 2738-0007 

www.tipo.gov.tw 

47


Procurement 

Details of procurement opportunities for 

the central government in Taiwan are 

available via the country’s e-government 

procurement system: 

http://web.pcc.gov.tw/tps/pss/tender. 

do?method=goNews 

Local governments have different 

procurement systems. Contact UKTI Taiwan 

for further information. 

48


Regulations, Incentives and Tax 

The Taiwanese government is committed 

to attracting foreign direct investment 

and the market is continuing to liberalise. 

Fewer than 1 per cent of manufacturing 

companies and 5 per cent of service 

industries remain closed to overseas 

investors. In particular, the Global Net 

Project will enable UK companies to 

take advantage of greater cross-strait 

co‐operation between Taiwan and China. 

Foreign investors must obtain foreign 

investment approval (FIA) from the 

Investment Commission of the MOEA. This 

entails submitting an investment plan and 

relevant documentation. Approval may be 

granted subject to certain conditions and 

restrictions. Once a company qualifies for 

FIA status, it will be entitled to certain 

benefits and incentives, such as permission 

to repatriate equity and loan investments, 

profits, interest and capital gains. 

Details of regulations, incentives and 

tax related to overseas investment are 

available on the Invest Taiwan website. 

http://investtaiwan.nat.gov.tw/matter/ 

show_eng.jsp?ID=8&MID=3 

Investment incentives 

The Taiwanese government offers various 

incentives to make the market more 

attractive to foreign investors, generally 

in the form of tax breaks. The Statute 

for Upgrading Industries (SUI), which 

administered these incentives, expired at 

the end of 2009. It will be replaced by a 

new Statute for Industrial Innovation. This 

will provide reduced tax rates for eligible 

companies, along with tax incentives 

for R&D, skills development, operating 

headquarters and international logistics 

and distribution centres in Taiwan. 

There are also incentives available under 

the Statute for Investment by Foreign 

Nationals/Overseas Chinese, the Business 

Mergers and Acquisitions Act, the Financial 

Institutions Merger Act and other laws. For 

more information talk to UKTI in Taiwan. 

Tax 

Taiwan aspires to a simple low-tax system. 

In June 2008, the Taiwanese government 

formed a Tax Reform Committee which 

made various recommendations relating to 

tax reforms. Among the key changes was a 

reduction in the rate of corporate income 

tax from 25 per cent to 20 per cent, 

effective from 1 January 2010. The aim 

was to combat any negative effects from 

the expiry of the SUI and to make Taiwan a 

more attractive environment for investors. 

49


Regulations, Incentives and Tax 

(Continued) 

The Tax Reform Committee ceased 

operations at the end of 2009, but the 

Taiwanese government has pledged further 

reforms. A monthly publication from 

PricewaterhouseCoopers called Taiwan Tax 

Updates provides an up-to-date picture of 

Taiwan’s changing tax environment. 

Exchange controls 

All foreign-exchange transactions are 

administered by the Central Bank of 

the Republic of China (Taiwan). This 

imposes a limit of US$50 million per year 

for business entities and US$5 million 

per year for resident individuals on any 

foreign‐exchange transfer, inward or 

outward, other than trading or service 

revenue. Certain exchange transactions 

must be reported to the Central Bank. 

Customs and regulations 

Value Added Tax (VAT) 

Value Added Tax is known as Business Tax 

in Taiwan. The receiver of imported goods 

is responsible for paying the tax, which 

is 5 per cent calculated against the total 

amount of duty-paying value, customs 

duty and harbour construction dues. If the 

goods are subject to commodity tax, the 

formula to calculate business tax will also 

include the cost of the commodity tax. 

Sales tax 

Foreign companies that do not have any 

offices in Taiwan pay 20 per cent sales 

tax (i.e. 20 per cent of the total invoice 

price). If a UK company can provide a GUI 

(Government Unified Invoice) then it pays 

only 25 per cent tax of the net profit they 

make on the local contract. Branch offices, 

representative offices and Taiwanese agents 

can issue GUIs. 

Export documentation 

It is essential to provide the correct 

documentation when exporting to Taiwan. 

UKTI in Taiwan can provide guidance and 

information. 

Import controls 

Taiwan publishes a List of Commodities 

Subject to Import Restrictions, which sets 

out the goods for which an import licence is 

required. UKTI in Taiwan can provide details. 

50

Labelling and packaging regulations 

Taiwanese Commodity Labelling Law 

sets out the general requirements for the 

labelling of any merchandise that is not 

covered by specific regulations. It requires 

that labels in Chinese are affixed to the 

commodity itself, to the inner and outer 

packing, or on the instruction sheet, 

showing information such as the name 

of the commodity, composition, weight, 

volume, quantity, specification, usage, 

place of origin and date of manufacture. 

The usage, effective date, method of 

application and preservation and other 

necessary information must also appear 

if the commodity is considered dangerous; 

has a limited time effectiveness; is related 

to public health and safety; has a special 

property; or has to be handled in a 

special way. 

51

Getting your goods to Taiwan 

By sea: Taiwan has four major international 

ports - Kaohsiung (the largest), Taichung, 

Keelung and Taipei (due for completion in 

2011). The Port of Kaohsiung, in southern 

Taiwan, has a sailing time to five of the 

largest Asia-Pacific ports (Hong Kong, 

Manila, Shanghai, Tokyo and Singapore) of 

just over two days, making it an important 

hub for the region. 

By air: Taiwan has two international 

airports - Taoyuan (also known as Chiang 

Kai-Shek) in the north and Kaohsiung in the 

south. Taichung Ching Chuang Kang Airport 

operates mostly domestic flights and flights 

to outlying islands. Taipei Songshan Airport 

is a mid-size commercial airport and 

military airbase. 

Freight forwarding: Sea and air-freight 

services to Taiwan are provided by a 

range of companies, including Sea Wing 

(www.seawing.co.uk/infoTaiwan.asp) and 

Dynamic International (www.dynamicfreight-shipping.co.uk/worldwide/asia/ 

taiwan/shipping-freight-taiwan.html). 

Freight-forwarding companies like these 

can provide advice on the best way to 

transport goods to Taiwan from the UK. It 

takes approximately three to four weeks to 

do this by sea, but this will depend upon the 

level of service the company provides, and 

the time it takes for custom clearance. 

Courier: There are many companies 

providing courier services to Taiwan, 

including DHL and FedEx. UKTI in Taiwan 

can provide more information. 

Postal parcel/express mail service: 

The Chunghwa Post Co. Ltd is Taiwan’s 

official postal service. It has 23 large 

offices throughout the country, along with 

1,300 post offices. The service delivers 

standard letters, registered mail, parcels 

and express mail across Taiwan. 

www.post.gov.tw/post 

52


Getting Paid and Financial Issues 

Incoterms 

Exporters will find Incoterms 2000 a useful 

guide for specifying their obligations for 

delivering goods safely in international 

contracts. Incoterms provide guidance on 

the commonly used terms in international 

trade. It is a must read for a company’s 

marketing and sales team. 

Terms of payment 

UK exporters are advised to insist on a 

confirmed, irrevocable Letter of Credit. If 

commercial factors dictate the need for 

more favourable terms, it is recommended 

that you consider these only after a period 

of successful relations, having established 

mutual confidence. 

Letters of Credit are normally opened four 

to six weeks prior to the shipment date. 

The expiry date of the Letter of Credit 

will be geared very much to the promised 

delivery date. It is important, therefore, 

that delivery promises are fulfilled or the 

Letter of Credit will expire. 

Banking 

Opening hours 

Banks in Taiwan are open between 

09.00 to 15.30, Monday to Friday. 

Major local banks include: 

Bank of Taiwan 

First Commercial Bank 

Chang Hwa Commercial Bank 

Hua Nan Commercial Bank 

Mega International Commercial Bank 

Fubon Bank 

Taishin Bank 

Chinatrust Bank 

UK banks include: 

HSBC 

Standard Chartered Bank 

Other major foreign banks include: 

ANZ 

Bangkok Bank 

BNP Paribas 

Bank of America 

The Bank of East Asia 

The Bank of New York 

The Bank of Tokyo-Mitsubishi UFJ 

Crédit Agricole Credit Suisse AG 

Citibank 

DBS Bank 

Deutsche Bank 

Mizuho Corporate Bank 

Standard Bank of South Africa 

State Street Bank and Trust Company 

Sumitomo Mitsui Banking Corporation 

UBS 

All commercial banks are authorised foreign 

exchange dealers. Licensed money changers 

are also found in urban centres, ports, 

airports and major shopping complexes. 

53


Getting Paid and Financial Issues 

(Continued) 

Currency information 

The currency of Taiwan is the new Taiwan 

dollar, commonly referred to as the yuán, 

which can be written in either of two 

forms: an informal 元 or a formal 圓 , (used 

interchangeably). Notes come in NT$2,000, 

NT$1,000, NT$500, NT$200 and NT$100 

denominations. Coins come in NT$50, NT$20, 

NT$10, NT$5 and NT$1 denominations. 

There are no limits on the amount of 

foreign currency (notes and/or traveller’s 

cheques) visitors may import. 

Visitors may take up to NT$40,000 into 

Taiwan, but will need a permit from the 

Ministry of Finance for the import of 

anything higher than NT$8,000, as well 

as a permit to export anything more than 

NT$40,000. 

54


Insurance 

The private sector in the UK provides 

credit insurance for exports of consumer 

products, raw materials and other similar 

goods. Speak to your banker or insurance 

broker for more information, or contact the 

British Insurance Brokers’ Association for 

impartial advice. 

British Insurance Brokers’ Association 

Tel: +44 (0)870 950 1790 (consumer 

helpline) 

Email: enquiries@biba.org.uk 

www.biba.org.uk 

Private-sector insurance has some 

limitations, particularly for sales of capital 

goods, major services and construction 

projects that require longer credit packages 

or that are in riskier markets. The Export 

Credits Guarantee Department (ECGD), 

a separate UK Government department 

that reports to the Secretary of State for 

Business, Innovation & Skills, provides a 

range of products for exporters of such 

goods and services. 

Export Credits Guarantee Department 

Tel: +44 (0)20 7512 7000 

Email: help@ecgd.gsi.gov.uk 

www.ecgd.gov.uk 

55


Management, Control 

and quality insurance 

UK companies use a variety of quality 

assurance and management-control 

techniques in Taiwan. These include 

extensive travelling by UK personnel, a 

controlling or liaison presence in Taiwan 

and providing extensive training and 

management for Taiwanese staff. It is 

important not to allow milestones to slip 

by, whether these are attending a board 

meeting in a joint venture, or arranging 

a quality audit at a supplier. 

Particular attention to detail should be 

paid when sourcing products from Taiwan. 

Specifications can be easily misunderstood, 

so they need to be very clearly explained 

and agreed, and a quality-management 

system put in place with the Taiwanese 

company. Consultancies can undertake all 

or part of this process on your behalf. 

56


Bribery and corruption 

Corruption remains an issue in Taiwan. The 

news, in June 2010, that three High Court 

judges and a prosecutor had been detained 

on suspicion of fixing the outcome of highprofile 

cases made world headlines. Taiwan’s 

ranking on the Transparency International 

Corruption Perception Index is 33 (score 

5.8), but this is an improving picture. 

Our advice to companies encountering 

corruption in Taiwan is simple – don’t 

get involved. Not only are there 

issues of business integrity to bear in 

mind, but it is also, of course, illegal. 

Invariably, corruption is related to lack of 

professionalism and control, all of which 

are damaging to long-term business. 

57


Getting to Taiwan 

By air 

Taiwan has two international airports, 

Taoyuan (also known as Chiang Kai-Shek) 

Airport in the north, and Kaohsiung Airport 

in the south. In March 2010, China Airlines 

began offering direct non-stop flights from 

London Heathrow to Taiwan three times a 

week. Eva Air flies seven times per week via 

Bangkok. Other carriers (e.g. Virgin, Cathay 

Pacific and British Airways) require transit 

in Hong Kong. 

Getting to and from the airport 

Travelling from Taoyuan Airport to Taipei 

city centre takes 60-75 minutes and 

costs NT$1,200-$1,500. The basic taxi 

fare is NT$70. Few taxi drivers speak or 

read English, so it advisable to carry cards 

with your destination address written in 

Mandarin. A hotel car can be booked with 

the hotel reservation, costing on average 

NT$1,500-$1,800. Tipping is optional and 

at one’s personal discretion. There are no 

hard-and-fast guidelines. 

Travelling within Taiwan 

Rail 

Taiwan has a good rail system. The tourist 

information hotline on 7173737 can 

provide details of fares and schedules, as 

can any travel agent or the service desk of 

Taipei Railway Station on 23713558. 

Taipei Metro Rapid Transit (MRT) 

All Taipei MRT lines operate between 

06.00-24.00 and run approximately every 

five to eight minutes. The fare ranges from 

NT$20-NT$65. More lines are planned. 

For more information about the Taipei 

Rapid Transit Corporation, visit the website: 

http://english.trtc.com.tw 

Road 

Traffic travels on the right in Taiwan. 

The roads in Taipei and other big cities 

are generally heavily congested. Freeways 

link most major cities, but traffic jams 

are common. 

58

Buses 

Taipei has an extensive bus network, 

which has become more efficient with the 

introduction of bus lanes on the city’s 

major roads. Buses run from 06.00-22.30 

and the basic fare is NT$15. A service 

runs every 15 minutes from the airport 

to the city centre between 07.50-23.30. 

A complete listing of routes can be found 

in the Taipei Bus Guide by Damien Brown, 

available from Taipei bookstores. 

Car hire 

Any foreigner who wishes to drive in Taiwan 

must have a valid driver’s licence. For shortstay 

visitors, an International Driver’s Permit 

issued outside Taiwan will suffice, but if 

you are planning to stay in Taiwan for more 

than six months, you are advised to obtain a 

Taiwan Driver’s Licence. Car-rental companies 

do exist, but self-drive is not a popular 

option because of the high number of traffic 

accidents and the difficulty in finding car 

parking spaces. Many visitors prefer to hire 

a car and driver through their hotel. 

Places to stay, eat and shop 

As well as advising on business issues, the 

UKTI team in Taipei can offer practical, 

on‐the-ground assistance with all aspects 

of your business trip to Taiwan, from where 

to stay through to good places to eat or 

hold product launches. 

Visas 

British nationals holding a passport with at 

least six months’ unexpired validity, who are 

visiting Taiwan for up to 90 days, do not 

require a visa to enter the country, provided 

they have a confirmed onward ticket and 

do not have a criminal record. An extension 

of another 90 days can be granted to a 

person who enters Taiwan this way. British 

nationals who hold a passport of less than 

six months’ validity will not be permitted 

to enter Taiwan unless a visa has been 

obtained prior to departure from the UK. 

All enquiries about visas, work permits and 

entry into Taiwan should be directed to 

the Taipei Representative Office in the UK. 

You should allow two days to obtain a visa, 

although a same-day service is available. 

Taipei Representative Office 

50 Grosvenor Gardens 

London SW1W 0EB 

Tel: +44 (0)20 7881 2650 

www.roc-taiwan.org/uk 

Email: consulate@taiwan-tro.uk.net 

Opening hours: 09.30-12.30, Monday to 

Friday 

Time zone 

Taiwan is eight hours ahead of Greenwich 

Mean Time. 

59

Taiwanese CULTURE 

In a highly competitive business 

environment, it is more important than 

ever to understand the business culture 

of your target markets. Understanding 

business culture helps you to understand, 

anticipate and respond to unexpected 

behaviour. It also ensures that you 

behave in an acceptable way and avoid 

misunderstandings. Refer to the Business 

Etiquette section for detailed guidance. 

60

Taiwanese Culture 

Politics 

China has claimed sovereignty over Taiwan 

since the end of the Chinese Civil War 

in 1949. As the Communists came to 

power in China, the defeated Nationalist 

government fled to Taiwan. 

Tensions have remained between Taiwan 

and mainland China ever since. China was 

angered by the former President of Taiwan, 

Chen Siu-bian’s moves towards formal 

independence. However, in March 2008, 

President Ma Ying-jeou came to power and 

has adopted a more conciliatory stance. 

For the first time in 60 years, the leaders 

of China and Taiwan exchanged direct 

messages in July 2009. A year later, the 

two parties signed an historic trade pact. 

Despite this, China continues to insist that 

nations cannot have official diplomatic 

relations with both China and Taiwan. This 

has led to diplomatic isolation for Taiwan. 

It has formal diplomatic ties with only 

two dozen countries, mainly Pacific, South 

American and African states. 

previously been an authoritarian one-party 

state. The trade agreement signed with 

China in 2010 is seen as a landmark deal. 

President 

President Ma Ying-jeou was sworn in 

on 20 May 2008, ending eight years of 

Democratic Progressive Party rule. Mr Ma 

was the youngest-ever cabinet minister 

in 1988 and earned a reputation for 

combating corruption as justice minister 

from 1993-1996. He led the Nationalist 

Party (Kuomintang) from 2005-7. Mr 

Ma’s conciliatory manner has earned the 

respect of his supporters and opponents 

alike. His presidential campaign focused on 

improving relations with mainland China 

and helping Taiwan’s financial services 

industry to establish itself there. The deal 

signed in 2010 is viewed by many as one 

of the President’s major successes. 

Taiwan has no seat at the United Nations, 

having lost it to China in 1971. Repeated 

attempts to regain representation at the 

UN have been blocked. 

However, despite its diplomatic isolation, 

Taiwan has become one of Asia’s biggest 

traders. In the early 1990s, the island 

made the transition to democracy, having 

61


Current Economic Situation 

2010 was a record-breaking year for 

Taiwan’s economy. It grew by 10.8 per cent 

year-on-year, the strongest annual growth 

since 1987. Booming domestic demand 

has helped UK exports to Taiwan reach 

a record high – over £1 billion in 2010. 

The momentum of growth is expected to 

continue in 2011, with GDP forecast to rise 

by 4.9 per cent year-on-year. Consumer 

Price Index (CPI) forecasts remain at a 

modest 2 per cent year-on-year level, 

although soaring global oil prices could 

fuel inflationary pressures. 

taiwan Economic Facts 2010 (unless otherwise indicated) 

UK (as a 


comparison) 

*Population 23.03 million 61.8 million 

*GDP per capita (purchasing power parity – ppp) US$19,155 US$34,076 (2009) 

*Nominal GDP US$427 billion US$2.18 trillion 

*GDP growth (real) 10.8% (2010) -4.9% (2009) 

**World Bank ease of doing business ranking 33 4 

***Global Competitiveness Report ranking 13 (2010/11) 12 (2010/11) 

Source: *Economist Intelligence Unit/**World Bank/***World Economic Forum 

62


Religion 


Challenges 

The main religions in Taiwan are Taoism, 

Buddhism and Christianity. Religion is not 

a sensitive issue in the country and the 

constitution guarantees religious freedoms. 

Although the business climate in Taiwan 

is improving all the time, some obstacles 

still remain. There are a few market-access 

issues faced by UK companies in the areas 

of pharmaceuticals, alcoholic beverages (lot 

coding/white spirits), public construction 

regulations, IPR and registering in Taiwan. 

The British Trade and Cultural Office in Taipei 

takes market-access issues seriously and is 

in regular discussions with senior officials 

in Taiwan to tackle the problem. UKTI can 

offer advice on overcoming these challenges 

and provide up-to-date information about 

developments in the marketplace. 

63

Contacts 

If you have a specific export enquiry 

about the Taiwanese market which is not 

answered by the information on this report, 

you can contact: 

UK Trade & Investment Enquiry Service 

Tel: +44 (0)20 7215 8000 

Fax: +44 (0)141 228 3693 

Email: enquiries@ukti.gsi.gov.uk 

You will be signposted to the appropriate 

section on our website, or transferred 

directly to the British Trade & Cultural 

Office in Taipei. Or, you may contact the 

British Trade and Cultural Office directly. 

British Trade & Cultural Office 

26th Floor, President International Tower, 

9-11 Song Gao Road, 

Xin Yi District, 

Taipei 11073, 


Tel: +886 (2) 8758 2088 

Fax: +886 (2) 8758 2050 

http://ukintaiwan.fco.gov.uk 

British Chamber of Commerce in Taipei 

(BCCT) 

The BCCT champions the Britain-Taiwan 

business interests of its members. It is an 

independent, non-government organisation 

made up of organisations affiliated with 

the UK and includes some of the most 

prominent organisations in Taiwan. The 

BCCT offers a range of membership 

activities, including presentations and 

64 

networking events. It has a close working 

relationship with the British Trade & 

Cultural Office and the British Council. 

British Chamber of Commerce in Taipei 

26 Floor, President International Tower 

9-11 Song Gao Road 

Taipei 11073 


Tel: +886 (2) 2720 1919 

Fax: +886 (2) 2720 9200 

Email: info@bcctaipei.com 

www.bcctaipei.com 

Country information 

BBC website 

http://news.bbc.co.uk/1/hi/country_profiles 

FCO country profile 

www.fco.gov.uk/en/travel-and-living-abroad/ 

travel-advice-by-country/country-profile 

Culture and communications 

CILT – National Centre for Languages – 

Regional Language Network in your area: 

www.cilt.org.uk/workplace/employer_ 

support/in_your_area.aspx 

Kwintessential culture guides 

www.kwintessential.co.uk

Customs & regulations 

HM Revenue & Customs 

www.hmrc.gov.uk 

Economic information 

The Economist 

www.economist.com/countries 

Export control 

Export Control Organisation 

www.bis.gov.uk/exportcontrol 

Export finance and insurance 

Export Credits Guarantee Department 

www.ecgd.gov.uk 

Intellectual property 

Intellectual Property Office 

www.ipo.gov.uk 

Market access 

Market Access Database for Tariffs 

(for non-EU markets only) 

http://madb.europa.eu/mkaccdb2/ 

indexPubli.htm 

Standards and technical regulations 

British Standards Institution (BSI) 

www.bsigroup.com/en/sectorsandservices/ 

Disciplines/ImportExport 

National Physical Laboratory 

www.npl.co.uk 

Trade statistics 

National Statistics 

www.statistics.gov.uk/hub 

UK trade information 

www.ukti.gov.uk 

Travel advice 

FCO 

www.fco.gov.uk/en/travel-and-livingabroad 

NHS 

www.nhs.uk/nhsengland/Healthcareabroad 

Travel health 

www.travelhealth.co.uk 

SOLVIT – Overcoming Trade Barriers 

(EU markets only) 

www.bis.gov.uk/EUMarketAccessUnit 

65

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The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk 

Any enquiries regarding this publication should be sent to our Enquiry Service by email: 

enquiries@ukti.gsi.gov.uk or telephone: + 44 (0)20 7215 8000 (Monday – Friday 09.00-17.00) 

This publication is also available from our website at www.ukti.gov.uk 

66

HELPING YOUR BUSINESS GROW INTERNATIONALLY 

A range of UK Government support is available from a portfolio of initiatives called 

Solutions for Business (SfB). The “solutions” are available to qualifying businesses, 

and cover everything from investment and grants through to specialist advice, 

collaborations and partnerships. 

UK Trade & Investment is the Government Department that helps UK-based companies 

succeed in the global economy, and is responsible for the delivery of the SfB product 

“Helping Your Business Grow Internationally”. 

We also help overseas companies bring their high-quality investment to the UK’s dynamic 

economy – acknowledged as Europe’s best place from which to succeed in global business. 

UK Trade & Investment offers expertise and contacts through its extensive network of 

specialists in the UK, and in British embassies and other diplomatic offices around the world. 

We provide companies with the tools they require to be competitive on the world stage. 

For further information please visit www.ukti.gov.uk or telephone +44 (0)20 7215 8000. 

Whereas every effort has been made to ensure that the information given in this document is accurate, neither 

UK Trade & Investment nor its parent Departments (the Department for Business, Innovation and Skills, and the 

Foreign and Commonwealth Office) accept liability for any errors, omissions or misleading statements, and no 

warranty is given or responsibility accepted as to the standing of any individual, firm, company or other 

organisation mentioned. 

The paper in this document is made from 50 per cent recycled waste pulp with 50 per cent pulp from 

well-managed forests. This is a combination of Totally Chlorine Free and Elemental Chlorine Free. 

The inks are vegetable oil-based and contain resins from plants/trees and the laminate on the cover 

is sustainable, compostable and can be recycled. 

Published March 2011 by UK Trade & Investment 

© Crown Copyright 

URN 11/1094

PROVINCE 


City with UK Trade 

Business Guide 

& Investment office 

Provincial capital city 

Major commercial centre 

PROVINCES and 

MAJOR CITIES 

TAIPEI 

CITY 

KEELUNG 

0 

100 Miles 

Taoyuan 

Taipei 

0 

100 KM 

TAOYUAN 

NEW TAIPEI CITY 

Hsinchu 

Yilan 

Key 

Key 

MUNICIPALITIES 

large cities that have the 

same administrative status as 

provinces and report directly 

to Central Government 

Miaoli 

MIAOLI 

HSINCHU 

YILAN 

PROVINCE 

Fengyuan 

TAICHUNG CITY 

City with UK Trade 

& Investment office 

Taichung 

Provincial capital city 

Changhua 

Hualien 

Major commercial centre 

CHANGHUA 

Nantou 

PENGHU 

YUNLIN 

Douliu 

NANTOU 

HUALIEN 

0 

Chiayi 

100 CHIAYI Miles 

0 

100 KM 

Xinying 

TAINAN CITY 

Tainan 

KAOHSIUNG CITY 

TAITUNG 

Qishan 

Kaohsiung 

Pingtung 

Taitung 

GREEN ISLAND 

PINGTUNG 

For more information on Taiwan please 

see the relevant country pages on the 

Foreign and Commonwealth Office 

website: www.fco.gov.uk 

Hengchun 

ORCHID ISLAND

Taiwan Business Guide - Management and Business Studies Portal

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