Setting up a business, the details

Business Money
1

Please accept my apologies if this has been covered before. I’ve tried to search for posts on this…but hell…this site is just too big!

I have some questions on starting a business that I hope someone can help me out on…

I am a trailing spouse coming to Taiwan in August…nope that doesn’t sound right…

…ahem…

I am a former managing director of a large multinational company who just quit his job. My wife wants to resume her career and hey, who am I to stop her? We are moving to Taipei, her in July, me and the dog in August.

So, I did toy with the idea of riding my bike and watching DVD’s for a few years…but with a few coffers in my pocket I’ve made the (perhaps foolish?) decision to start a business in Taiwan.

I have a broad idea of getting involved in the cycling business. I have secured some distributorship deals and have the opportunity to import and sell products to retail outlets in Taiwan. The idea is to use this to build up local and overseas contacts and eventually get into design, sourcing and supply chain for buyers of cycling products.

I’m writing the business plan now, and was wondering if there were any contacts on this board that were involved in the massive Taiwan bike business.

Secondly Id like some advice on the details of setting up a business. Can I do it without a Taiwanese partner, what is minimum paid up capital that I need, where do I register? Do I need an office? Is there a minimum turnover before corporation tax is paid? Are there agents that can help with the paperwork? Pitfalls to watch out for?

I was going to wait until I was over in August and come along to an entrepreneurs evening, but no harm in asking now…

Thanks in advance for anyone who can help…
Any advice is gratefully received.
Fungus…

2

moeaic.gov.tw/
You can try this.
And it shows you this…Investment Flow Chart（Establishment of New Enterprise）.
Hope it works.

3

No, you don’t need a Taiwanese partner. It’s a lot easier to register under a Taiwanese person, but you can get royally screwed later. Depending on the type of company the minimum capitalization is TW$500,000 or TW$1,000,000 and if you start it as a foreigner the money must be remitted to the company account from abroad. You can also set up a representative office with no local capital but you will be limited in your business activities in Taiwan. However if you are going to be setting up deals instead of handling them directly then this might be a way to go. You need a registered office. Some accountants will ‘rent’ an address to you but expect to pay a lot for such service. Most people will use an accountant to set up the company. Two that are familiar with foreign owned businesses are Ann Hu and Joseph Ni. You can do the registration completely on your own and will save a lot of money, but it’s also a lot of work. DON’T use an accountant who is unfamiliar with the special requirements of foreign owned businesses. They will promise lower prices but they have no idea what they are doing. If you want to save a buck, do it yourself, otherwise pay the bit extra for someone who knows what he or she is doing. I use Ann Hu as my accountant and can strongly recommend her. Use the search button above to find contact info.

4

[quote=“wisher”]http://www.moeaic.gov.tw/
You can try this.
And it shows you this…Investment Flow Chart（Establishment of New Enterprise）.
Hope it works.[/quote]

Could you provide a more speific link - I cannot find what you are referring to.

Regards
Michael G

5

investintaiwan.nat.gov.tw/en/env/guide/setup/
Well,you can try this.

This is Chinese.
dois.moea.gov.tw/asp/application.asp

6

Question:

Can someone on a Resident visa with ARC (for purpose of studying Chinese) work legally for their own sole proprietorship set-up in Taiwan?

  • I know I can set-up the business legally.
  • I know if I were a university student that I could not work (render services).
  • But I don’t know that as a language centre student if I am considered a university student.

Please help.

Thanks

7

I think you should have the ARC for work.
Because you have to follow the “employment service law.”

8

Good advice from jlick. Get an accountant to do this for you. Setting up a business in Taiwan can be an ordeal in paperwork.

See llary’s guide to setting up a rep office. It will give you the flavor.

forumosa.com/taiwan/viewtopic.php?t=43055

One thing llary doesn’t mention is that you (as the rep) are personally liable for deals that you sign in Taiwan as a rep of your company back home.

No, you don’t need a Taiwanese partner. It’s a lot easier to register under a Taiwanese person, but you can get royally screwed later. Depending on the type of company the minimum capitalization is TW$500,000 or TW$1,000,000 and if you start it as a foreigner the money must be remitted to the company account from abroad. You can also set up a representative office with no local capital but you will be limited in your business activities in Taiwan. However if you are going to be setting up deals instead of handling them directly then this might be a way to go. You need a registered office. Some accountants will ‘rent’ an address to you but expect to pay a lot for such service. Most people will use an accountant to set up the company. Two that are familiar with foreign owned businesses are Ann Hu and Joseph Ni. You can do the registration completely on your own and will save a lot of money, but it’s also a lot of work. DON’T use an accountant who is unfamiliar with the special requirements of foreign owned businesses. They will promise lower prices but they have no idea what they are doing. If you want to save a buck, do it yourself, otherwise pay the bit extra for someone who knows what he or she is doing. I use Ann Hu as my accountant and can strongly recommend her. Use the search button above to find contact info.[/quote]

9

You don’t automatically get a work permit automatically by setting up a company. In order to sponsor a work ARC for yourself through your own company you generally need to start the company with minimum capitalization of TW$5m. With a representative office you can get an ARC for much less capital, but representative offices are highly restricted in what the can do. Generally you can carry out business transactions on behalf of a foreign company, but not actually work or provide direct services.

With a student ARC you can get a work permit for up to 16 hours of work a week but you need to show a good academic record to get one. Ask your school for details.

10

You don’t automatically get a work permit automatically by setting up a company. In order to sponsor a work ARC for yourself through your own company you generally need to start the company with minimum capitalization of TW$5m. With a representative office you can get an ARC for much less capital, but representative offices are highly restricted in what the can do. Generally you can carry out business transactions on behalf of a foreign company, but not actually work or provide direct services.

With a student ARC you can get a work permit for up to 16 hours of work a week but you need to show a good academic record to get one. Ask your school for details.[/quote]

In addition, you will usually need to show a certain amount of revenue (company) or sales agreements/promotional activity (rep office) after the first year to justify continued ARCs and work permits. The ‘safe’ figure is NT$5 million although lower amounts are in practice often accepted. There is no fixed standard but they are looking to see that the business is actually doing business.

11

Detailed information you can call to the MOEA.
Tel : +886-2-23892111 - Fax :+886-2-23820497/8
Hot Line : +886-2-23820493(Investment Information)
Email Address : dois@moea.gov.tw

12

I know someone working in international sales in this industry. She enjoys the work but doesn’t like her boss. PM me and I’ll introduce you.