Why do business in Taiwan?
Taiwan, with a population of around 23 million, is located in the heart of the Asia-Pacific region. With easy access to Mainland China, and a stone’s throw from countries such as Japan, South Korea, and the Philippines, it enjoys a central position for transport and logistics in the Asia-Pacific area, and continues to attract foreign investment from companies looking to secure their position in this key region.
However, Taiwan’s corporate environment can be difficult to navigate for those not familiar with the intricacies of local laws and procedures. One way to approach doing business in Taiwan is by employing the expertise of a Professional Employer Organization (PEO). A PEO, sometimes referred to as a local partner, local employer or back office staffing, is a third-party company contracted to administer all official employment undertakings. While the PEO will be the legally registered employer, you will retain all supervisory oversight of your workers, and will continue to make any managerial decisions related to assigned duties, projects, compensation and termination, with support from the PEO as and when required. There are many benefits to using a PEO:
A PEO is particularly beneficial for companies not looking to employ workers directly, and the PEO will handle all the administration surrounding recruitment, work permits, HR and payroll. This allows you to be flexible in your approach to the Taiwanese market, and simplifies the process. You would not need to create your own legal entity in Taiwan for employment purposes, since the PEO will employ the workers directly, saving you both time and money. This can be particularly useful if you are in the initial stages of expansion, and are not yet ready to commit to the time and money required to incorporating and registering a Taiwanese company to operate local payroll. PEOs are also often utilised by smaller companies who may have limited HR resources.
PEOs can help you to understand local expectations regarding benefits, and can usually provide companies with options to reduce health insurance and benefits costs for workers, which will be particularly attractive to small and medium sized enterprises. However, a PEO can simplify foreign employment for companies of all sizes.
Countries around the world can have significantly different laws relating to payroll, and by their nature these laws are often complex and constantly evolving. Compliance with local labor and employment law is crucial if you are looking to expand into the Taiwan market. Visas and work permits will be required for any foreign workers, and there are sanctions in place for companies that fail to comply with the law, which can range from fines to the company losing the right to employ foreign nationals at all. Non-compliance with local laws can also lead to disastrous negative press and loss of credibility.
Using a PEO allows you to benefit from a wealth of existing expertise, which can streamline the application process for vias and permits, and reduce the likelihood of delays or rejections. A PEO can take care of payroll, tax compliance and labor law, and keep you up to date with the latest changes in any applicable laws. Using a PEO means you can rely on their expertise to ensure that you are operating efficiently and in full compliance with Taiwan’s laws.
3. Peace of Mind
Business expansions can be complicated, requiring intricate planning and smart execution. Using a PEO gives you peace of mind and allows you to truly focus on your expansion into the Taiwanese market. Your PEO will handle all administrative tasks relating to your workers, allowing you to concentrate on your business and the commercial aspects of your expansion. A PEO can help you to confidently forecast and monitor your expansion, providing much needed reassurance that your employment undertakings are taken care of. By working with a PEO, you can rest assured that your local workers will be paid correctly, taking into account any time differences, currency exchange rates and applicable tax.
INS Global: Your partner in the Taiwan market
With INS Global as your PEO, you will always be in good hands. We are a leading provider of PEO services in Asia, with experience helping over 300 foreign enterprises over more than a decade. We are proud to have staff with extensive experience in HR, tax, accounting, legal and client services who are ready to guide you through your Taiwan expansion. We can help you enter the Taiwan market in record time and even assist with your transition to company incorporation in the future, if required.