THE HISTORY: Scholars support that evidence of human settlement in Taiwan date 30 to 40 thousand years ago. It is believed that the Austronesian people, ancestors to many of the current inhabitants of Taiwan, arrived in Taiwan.

 

It has been established by many, that during the early years of Taiwan’s existence, China remained indifferent to Taiwan, declaring the location a ‘savage island, best not to be affiliated with’. However as early as the 1300s to 14000, Chinese immigrants arrived in Taiwan in order to escape the political instability existing over Fujian province.  Soon after, another ethnic group immigrated to Taiwan, the Hakka and as a result around 1500s there where three different types of tribes in Taiwan’ Hakka, Chinese and the local tribes who were living in Taiwan since the early ages.

 

Many other ethnic groups soon enough got interested in Taiwan, including but not limited to the Dutch who set up a trading base, the Spanish in 1626 and the Portuguese (1951) who named it ‘Ihla Formosa’ which means ‘beautiful island’ dazzled by its lush plains, rocky coasts and rugged mountains.

 

 

THE CLIMATE AND TOURISM:  Taiwan enjoys long hot and humid summers, occasional heavy rainstorms and typhoons, short winters with warm and foggy atmosphere due to winds from the Siberia High. Daytime temperatures, at some places of Taiwan can reach up to 26 Celsius during the warmer winter days and occasional cold fronts can cause the drop of the temperature of up to 3 to 5 Celsius. Taiwan has more than 5000 temples, impressive museums and extra activities that would interest any visitor.

 

DOING BUSINESS IN TAIWAN & MAIN FEATURES:

 

A company in Taiwan can be incorporated within six weeks, depending on its type and structure; there are essentially six different types of legal entities:
 

• LIMITED LIABILITY COMPANY is the most frequently choice for incorporating a legal entity in Taiwan. It is considered, like in most western systems, a legal entity that has separate existence from its owners and any claims are only limited up to the assets of the legal entity.  Such a legal entity may be set up within a week, having the minimum of one shareholder and one director, irrespective of nationality. The minimum share capital is USD1 and there is no requirement for the client to be present in order to establish the company.

 

• BRANCH is considered any foreign owned company that seeks establishment of its premises in Taiwan so as to do business. A requirement is however that the said business obtains on a prior stage the relevant certificate of recognition, entitling them for setting up a branch and providing the relevant services.

 

• REPRESENTATIVE OFFICES is usually used by foreign owned entities in order to conduct specific and limited services, in a legal manner that relates to their business. They are not however entitled to provide remunerated business based under the domestic laws of Taiwan.

 

• PARTNERSHIPS can be formed by two or more individuals, who decide to combine their knowledge and skills in order to run a business.  Like partnerships in other jurisdictions, partners are personally liable, up the point they agreed in the agreement for partnership, which they entered into prior the establishment of the partnership.

 

• UNLIMITED COMPANIES bear no limit to the liability of its member, which is the main reason why this option is not used by many.

 

• SOLE PROPRIATORSHIP entitles and individual to manage their business, giving them full managerial control.

 

 

TAXATION: Corporate tax rate in Taiwan is 17%, VAT rate is 5% but there is no tax on exports. Taiwan is a signatory to more than 20 double tax treaties, whilst it has also signed a number of international shipping and air support double taxation treaties. There is an annual requirement for audit, applicable to most of the type of legal entities and it has also gained the title as being one of the lowest tax jurisdictions in the world. There is a requirement that in the event any profit made by the legal entity, is distributed to any of its foreign members, a 10% tax will be imposed. .