ABOUT TAIWAN

Amongst all the countries in East Asia, Taiwan, officially the Republic of China (Taiwan), is a highly developed island nation situated in the Western Pacific Ocean. Renowned globally for its “economic miracle” and democratic governance, Taiwan has transformed into a leading player in the global technology industry, particularly in semiconductor manufacturing. Taipei is the capital and largest city, serving as the political, economic, and cultural heart of the island. While the World Bank does not classify Taiwan as a separate economy in its public data, it is widely recognized by other international organizations as a high-income, advanced economy with a robust and export-driven technological sector.

The currency of Taiwan is the New Taiwan Dollar (TWD). As of today’s exchange rates (June 2025), 1 New Taiwan Dollar is approximately 2.57 Indian Rupees. The population of Taiwan is estimated at approximately 23.9 million in 2024. As an island nation, Taiwan does not share land borders. Its maritime neighbors include the People’s Republic of China to the west, Japan to the northeast, and the Philippines to the south. The official language is Mandarin Chinese. English proficiency is generally good in business and academic circles, especially in major cities, reflecting its international engagement. The majority of the population practices a blend of Buddhism, Taoism, and traditional Chinese folk religions, with a notable Christian minority. Major international airports include Taiwan Taoyuan International Airport (TPE) near Taipei and Kaohsiung International Airport (KHH) in the south, providing extensive global air connectivity. Taiwan’s key commercial seaports are Kaohsiung Port (one of the world’s busiest container ports), Taipei Port, Keelung Port, and Taichung Port, which are crucial for its thriving export-oriented economy.

The standard corporate income tax rate in Taiwan is a competitive 20%. Taiwan actively encourages foreign direct investment, particularly in high-tech and value-added industries, through a range of incentives and a supportive regulatory environment. The Ministry of Economic Affairs (MOEA) and its Department of Investment Services (DOIS) are key government agencies facilitating foreign investment. Incentives include:

• Tax Credits and Incentives for R&D: Generous tax credits for research and development expenditures, promoting innovation.
• Subsidies for Strategic Industries: Government subsidies for investments in smart manufacturing, green energy, biotechnology, and other strategic sectors.
• Special Industrial Parks: Dedicated science parks (e.g., Hsinchu, Central Taiwan, Southern Taiwan Science Parks) offer infrastructure, streamlined administrative services, and a concentration of high-tech industries.
• Duty-Free Importation: For machinery and equipment not domestically produced, used in qualifying productive enterprises.
• Investment Tax Credits: For specific categories of investments, such as automated equipment or human resource development.

Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a rental property for your office.

Establishing a business in Taiwan is a well-structured process, reflecting its developed economy and commitment to international business standards. Foreign investors most commonly establish a “Company Limited by Shares” (similar to a public or private limited company) or a “Limited Company.” Establishing a Branch Office is also an option. Generally, 100% foreign ownership is permitted in most sectors, though certain industries may have restrictions or require specific approvals, particularly those deemed sensitive or strategic. Taiwan’s robust legal framework and transparent regulatory environment provide a secure foundation for foreign investment.

In case an investor is planning to establish a Company Limited by Shares or any corporate business setup in Taiwan, Opesh Group will be helping you in taking the right decision for setting up your business in Taiwan and we will also guide you about how to follow the procedure while formulating your company in Taiwan.

Types of Business which can be started in Taiwan:

• Semiconductors & Electronics Manufacturing: Taiwan is a global powerhouse in this sector (e.g., TSMC). Opportunities exist in advanced chip manufacturing, IC design, packaging, testing, and related supply chains.
• Information & Communication Technology (ICT) & AI: Investment in hardware (e.g., computers, telecommunication equipment), software development, AI applications, IoT solutions, and cloud services.
• Precision Machinery: A strong sector known for high-quality machine tools, automation equipment, and robotics.
• Green Energy: Significant government push for renewable energy, particularly offshore wind power, solar energy, and smart grid solutions.
• Biotechnology & Pharmaceuticals: Growing sector with focus on drug discovery, medical devices, and health technologies, leveraging strong R&D capabilities.
• Smart Manufacturing: Integration of AI, IoT, and automation into traditional manufacturing processes.
• Research & Development (R&D) and Innovation: Leveraging Taiwan’s strong R&D ecosystem and skilled talent for various technological advancements.

Advantages of Starting Business in Taiwan:

• Global Leader in High-Tech: Dominant position in the global semiconductor and ICT supply chains, offering unparalleled ecosystem support.
• Strong R&D and Innovation Capacity: High investment in R&D and a highly skilled, educated workforce with a focus on engineering and technology.
• Stable and Democratic Environment: A robust democracy with a transparent legal system, providing political and economic stability.
• Strategic Location: Positioned in a dynamic East Asian growth region, offering access to major markets.
• Developed Infrastructure: World-class transportation, logistics, and digital infrastructure.
• Resilient Economy: Demonstrates strong economic resilience even in global downturns.
• Intellectual Property Protection: A strong emphasis on protecting intellectual property rights.

Imports & Exports: Taiwan is a highly export-driven economy, heavily reliant on its high-tech manufacturing sector.

Major items which are exported from Taiwan:

• Integrated Circuits (Semiconductors)
• Electronic Components
• Computers and Telecommunications Equipment
• Machinery and Parts
• Chemicals and Plastics
• Optical Instruments
• Basic Metals and Articles thereof

Major items which are imported in Taiwan:

• Electrical Machinery and Equipment (components for manufacturing)
• Mineral Fuels (crude oil, natural gas)
• Basic Metals
• Chemicals
• Precision Instruments
• Agricultural Products

Major items traded between Taiwan and India (as of June 2025): Trade between Taiwan and India has been steadily growing, particularly in technology and electronics.

• Exports from Taiwan to India: Primarily include electronic components (e.g., integrated circuits, printed circuit boards), machinery, precision instruments, chemicals, and plastics.
• Imports in Taiwan from India: Include mineral fuels, iron and steel, organic chemicals, agricultural products (e.g., cotton, maize), and some auto parts. Indian IT services companies are also increasing their presence in Taiwan.

Manufacturing: Manufacturing is the backbone of Taiwan’s economy, driven by its prowess in high-tech industries.

• Semiconductor Manufacturing: Leading the world in foundry services (e.g., TSMC) and a major player in IC design and packaging.
• Electronics: Production of computers, smartphones, telecommunication equipment, and various consumer electronics.
• Precision Machinery: Manufacturing of advanced machine tools, industrial robots, and automation equipment.
• Chemicals & Petrochemicals: Production of basic chemicals, plastics, and synthetic fibers.
• Optoelectronics: Manufacturing of LCD panels, LEDs, and other optical components. Taiwan is known for its ability to rapidly innovate and scale production in high-tech fields.

Mining: Taiwan has very limited natural mineral resources, and its mining sector is negligible.

• Coal: Very small reserves, mostly depleted.

• Natural Gas: Minor offshore reserves, but heavily reliant on imports.

• Marble and Limestone: Quarried for domestic construction materials.

• Reliance on imports for most raw materials is high.

• GDP = $861.9 billion (nominal, 2024 est. IMF)

• GDP Growth = 3.3% (2024 est. IMF); 3.0% (2025 forecast, IMF)

• Ease of doing business rank = The World Bank’s ‘Doing Business’ report has been discontinued. Taiwan consistently ranked high in the report (e.g., 15th out of 190 economies in 2020), reflecting its highly efficient regulatory environment, strong legal framework, and competitive business landscape for both domestic and foreign enterprises.

• GDP per Capita = $35,907 (nominal, 2024 est. IMF)

Thanks for reading this Article. Watch our Video and know more about Taiwan. For any Business Enquiry Join Millionaire Program and change everything in life and Business.. Call/ WhatsApp +91- 8094607111.