How to Start a Business in Taiwan: A Helpful Guide for 2023

How to Start a Business in Taiwan

How to Start a Business in Taiwan

December 12, 2023


Picture of INS Global




Picture of INS Global




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Key Takeaways

  1. Taiwan occupies an important position in the global economy with its economy ranked as the seventh largest in Asia
  2. Employees in Taiwan are entitled to 30 days of sick leave per year, which is paid at half-pay
  3. Employees working in Taiwan are limited to working 40 hours per week (not including overtime)

We assist foreign enterprises in starting and growing their business in Taiwan. We help you formulate the optimal business strategies encompassing every stage of your global expansion.

Take your business and talent to Taiwan in record time. INS Global offer a tailor-made PEO service for businesses who wish to start their operations in Taiwan. When you use our service, your employee is legally employed by INS Global, exclusively on your behalf. We ensure compliancy with local labour laws and take care of the onboarding process and payroll, removing the administrative burden of international expansion from your shoulders to ours. Your employee, our payroll. It’s that simple.

Our transparent, low-cost solution means that there’s no need to establish a costly subsidiary in Taiwan, your employee is hired and can get to work on your company’s growth in record time.  


Making the Most of Taiwan and the Opportunity for Success


Taiwan occupies an important position in the global economy with its economy ranked as the seventh largest in Asia. It maintains a stable, dynamic economy that is largely driven by industrial manufacturing, especially exports of electronics, machinery and petrochemicals. It boasts access to an educated workforce, and remains one of the key technology investment destinations in the world.

Taiwan is a center of technological and manufacturing innovation fueled by entrepreneurial spirit. With extensive knowledge of the market, we help you to consider all options, navigate local rules and regulations, and gain the resources needed to ensure success. By optimizing your Taiwanese business on all fronts and giving you the room to focus on your core business, we play a role in making your global expansion a success.

Despite the benefits of employing in Taiwan, it is advisable that businesses find the right partner to ensure that they remain compliant with local employment and business regulations.  


Doing Business in Taiwan: Key Things to Know


Public Holidays


Employees in Taiwan, irrespective of their length of service, are entitled to the following 9 statutory holidays:

  • New Year’s Day
  • Chinese New Year
  • 228 Peace Memorial Day
  • Children’s Day
  • Tomb-Sweeping Day
  • Labour Day
  • Tuen Ng (Dragon Boat) Festival
  • Mid-Autumn Festival
  • National Day


Working Hours in Taiwan


Employees working in Taiwan are limited to working 40 hours per week (not including overtime) and no more than eight hours per day. They must be given two rest days every seven days.  




Overall working hours (regular working hours plus overtime hours) must not exceed 12 hours per day. The maximum amount of overtime hours allowed is 46 hours per month. For the first two hours of overtime on a regular working day, an overtime rate of 1.34 times the regular hourly wage applies. For the second two hours of overtime, an overtime rate of 1.67 times the regular hourly wage applies.  


Holiday Entitlement


Employees are entitled to paid annual leave based on the number of years they have served within the company.

Taiwan Maternity Leave


Pregnant employees in Taiwan benefit from a supportive network of laws ensuring their protection in the workplace. Female employees are entitled to 8 weeks maternity leave:

  • Employees with at least six months’ service are entitled to 8 weeks’ fully paid maternity leave
  • Employees with less than six months’ service are entitled to 8 weeks’ maternity leave at half their normal pay.

Pregnant employees must be granted at least five fully paid days of leave for routine check-ups. Pregnant employees can request to transfer to lighter work without a reduction in salary. Employees who suffer a miscarriage are given leave in line with the length of pregnancy.

Employment law prohibits the termination of employment contracts during maternity leave.  


Sick Leave in Taiwan


Employees in Taiwan are entitled to 30 days of sick leave per year, which is paid at half-pay.  In addition, if an employee is hospitalized, they are entitled to unpaid sick leave of up to one year.  


Termination and Necessary Severance Pay in Taiwan


Probation periods are recognized as ‘trial periods’ in the Taiwan Labor Standards Law (LSA) and usually last three months. However, there is no set limit making the length open to negotiation and agreement between the employee and employer. The employer may choose to dismiss the trial employee at the end of the probation period but must give at least 10 days’ notice.

Unlike countries such as the United States, there is no ‘at-will’ employment in Taiwan. Employers in Taiwan can only terminate their employment contracts when at least one of the statutory situations have been met:

  • The business has closed or transferred ownership
  • Fiscal loss of curtailment of operations
  • The operations of the employer are suspended for more than one month due to force majeure
  • The business nature of the employer has been altered, leading to a reduction in number of employees and there are no suitable positions for the redundant employees
  • The employee is considered to be incompetent to carry out his/her required tasks

If the reason for dismissal falls into one of the aforementioned categories, the employer must give prior notice and severance pay in accordance with their length of service:


Taiwanese Visas


Foreign employees who wish to commence employment in Taiwan must apply for a Resident Visa from a Taipei Representative Office in their home country by submitting their passport along with supporting documentation. The cost of this may be reimbursed by your employer. Sanctions are in place for individuals who over stay their visas or do not have the correct resident documentation. Failure to comply may result in issued fines or restriction from re-entering Taiwan for a period of time.  




Taiwan’s healthcare system is held in high regard as one of the best healthcare systems in the world, akin to the United Kingdom’s National Health Service. Employees in Taiwan should be automatically enrolled onto the government-run National Health Insurance (NHI). It is not uncommon for expat professionals to negotiate private healthcare insurance as part of their benefits package, especially at senior level.  


Taiwan Taxes


Persons residing in Taiwan continuously for 183 days or more during a tax year are considered a tax resident. Personal income tax follows a progressive system with the top rate being 45% on earnings above TWD 10,310,001.

The LSA requires employers in Taiwan to provide employees with the following benefits:

  • National Health Insurance (NHI) – Contributions of which are split between the employer (60%), the employee (30%) and the Taiwanese government (10%).
  • Labour insurance
  • Employment insurance

INS Global can assist your company with all of these matters, ensuring that your employment arrangements in Taiwan are 100% compliant with the LSA.  


Develop your Business in Taiwan Today: Why INS Global is Perfectly Placed to Help You


Taking your business to Taiwan? INS Global can help. International expansion presents many opportunities for foreign companies wishing to test new markets. However, it can also be time-consuming and involve unique risks including an unfamiliar regulatory environment, compliance with tax and employment laws, culture and language barriers.

INS Global’s PEO and international Employer of Record services offer you peace of mind when expanding into the Taiwanese market. By co-employing your staff, you avoid company incorporation complexities so you can focus on running your business.

The INS Global team can help you get to where you want to go. Contact us today to get your business up and running in Taiwan. Our expert advisors can help you identify the most appropriate avenues for growth, taking into account your long-term development goals.  




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