Advise Needed: Relocating a Business to Taiwan

Business Entrepreneurship
1

Hello Everyone,

I hope this message finds you well.

I am an international entrepreneur seeking guidance on a business matter. Recently, I was advised to explore establishing a business in Taiwan by a friend due to challenges I am currently facing in my home country.

My business is primarily online, focused on selling cusotmized textiles and fashion accessories to customers in the US and Europe. Most of my vendors are based in China, Taiwan and Indonesia. Historically, I managed payments to my vendors via Alibaba.com, but recent economic conditions in my country have disrupted this process. Due to limited foreign exchange reserves, the central bank has asked all commercial banks in my country to impose restrictions on international credit card usage and payments, including transactions through Alibaba.com and other foreign platforms to restrict the outflow of dollars outside the country, therefore all international/foreign payments have been capped at $2000 per month.

These restrictions, coupled with the absence of PayPal in my country, has severely impacted my ability to pay my suppliers and sustain operations smoothly.

To address these issues, I am considering incorporating a business in Taiwan and obtaining a PayPal business account. My goal is to use this account to:

Receive payments from US customers via invoicing.

Process payments to suppliers in China, Taiwan, Vietnam, and Indonesia, as many of them accept PayPal.

I understand that setting up a PayPal business account in Taiwan requires residency and proof of address. Could you please advise:

Whether incorporating a business in Taiwan would facilitate the opening of a PayPal business account seamlessly?

The feasibility of meeting PayPal’s requirements for residency and proof of address to ensure smooth operations.

I would greatly appreciate your insights and guidance on this matter.

Thank you for your time and assistance.

Best regards,

2

An accounting firm, (not an attorney), can do all of this for you. But do get an attorney as well, preferably one that is fluent in your native language.

1 Like
3

Singapore might be a better fit

English speaking, easy access to international payment processors, etc

I don’t know how easy it is for a foreigner owned business in Taiwan to do business with China. It might be asking for extra scrutiny from the investment committee that approves foreign owned businesses, and you may need to authenticate everything from China through the Straits foundation. May want to research that first.

The costs to incorporate and run a company in Taiwan for a foreigner are higher than in Singapore since the accountants charge double for most things, as foreigner owned businesses in Taiwan need to go through the investment committee for small changes like increase in capital.

Also 3 months to incorporate in Taiwan for a foreigner vs same day incorporation in Singapore and open a bank account in Singapore same day.

Perhaps if you have local vendors and customers in Taiwan, or want to hire local staff it could be a good reason to incorporate there.

4

AFAIK. Taiwanese PayPal account have restrictions of sending or accepting payments from/to other Taiwanese PayPal accounts.
You can just use a local bank transfer.

8

messageImage_1694677639334
messageImage_16946776393341418×446 95 KB

Hi. Here is the Taiwan CPA I recommend and use. He speaks English. Rates are reasonable.

9

Thank you.

I’ll explore that.

15

The only thing that concerns me with Singapore is that I wont be able to work there and direct the business, right ?

Compared to Taiwan I assume there is no work permit for business owners, correct me if I am wrong.

16

Everyone needs a work permit as a foreigner, including business owners if you are taking up residency in Taiwan.

Unless you qualify for the Gold Card residency that comes with an open work permit.

17

There is absolutely a residence and work permit for business owners. Basically, you need to invest about US$16,000 and you will usually get three years. You might only get 1 year if you are from a disfavored country.

There are also other possible options like the Employment Gold Card (somewhat more difficult to get) and an
Entrepreneur Visa. For these two options, you should consult with the Taiwan Talent Office first. It’s free.

Most people go to an accountant for help with the investment option.

18

Of course for any country you need a work
Permit, but for Taiwan the requirements of a work permit as a foreign business owner to manage your own company, seem to be simple and workable like a paid up capital of NTD500,000 and next year revenues of 3,000,000 for renewal.

Do you have info on Singapore, I’ll do a quick google search though.

19

No. I don’t as I don’t want to live or work in Singapore. Nice place to pass through I was there just over 2 weeks ago.

My own business in Taiwan only has clients outside of Taiwan who pay to my business account in Taiwan or to other accounts in other countries.
I came to Taiwan as a foreigner opened a business. Later on naturalized. Less complicated being a citizen here.

Also I would never use paypal for my business.

1 Like
20

Is this for Taiwan or Singapore ?

21

Taiwan

22

You also need to learn about Taiwans unique banking laws as well.

23

You can if you want to.

Many business owners set up a business there but don’t live there. Everything can be set up for you to run the company from wherever you want.

Or you can give yourself a reasonable salary from your own company and self sponsor for a visa.

They also have programs similar to gold card that give 3-5 year open work visas.