Taiwan is one of the fastest-growing economies in Asia and it offers a lot of opportunities for global businesses that can establish their presence there. However, getting into the Taiwanese market is very difficult and there are a lot of things that could trip you up. This is why we will look at a few things you need to know if you want to get into this market.
The three main challenges you will face include competition, political changes and language barriers. Because Taiwan is very densely populated by virtue of being geographically small, there is greater competition for resources and market share. This is why it is so important for businesses to do their research to see what they will be facing.
A change in political governance in Taiwan can bring about economic uncertainty. To avoid this, avoid getting into Taiwan after an election and instead wait until things calm down.
Finally, English is not widely spoken in Taiwan compared to other Asian countries. Therefore, you might need a translator to help you navigate the Mandarin and Taiwanese Hokkien spoken there. Also, note that all filings to government offices must be done in traditional Chinese, so you might need a translator there too.
You Might Need a Recruitment Partner
When starting a business in Taiwan, there are a lot of things you need to understand about the culture, how the people there view different aspects of employment (holidays, maternity leave, overtime, etc.) in addition to finding the right talent to help your expansion in this new market.
To avoid learning every little thing you need to know to hire successfully in Taiwan, hire a recruitment agency in Taiwan that understands the Taiwanese recruitment environment. New Horizons Global Partners comes to minds because, in addition to helping you find the right candidate, they also help you do market research to see if there are enough opportunities for your business in Taiwan. The main reason why you should consider this recruitment agency is that they offer you so much more than finding the right talent, including handling payroll, helping you pay your taxes correctly, and providing training so your new hires can fit into your company easily.
You Might Be without Electricity
The Taiwan Power Company takes an average of 24 days to connect a property to the grid. This means that you might be without electricity for a while unless you resort to other sources of power. Companies that want to get into Taiwan are advised to apply for electricity a month before moving there so they find the power already connected.
Taxes Are Complicated
Paying taxes in Taiwan takes around 221 hours per year. In addition, international companies should know there are levies on these taxes they should be aware of. Some of these charges include city house taxes, stamp duty and vehicle license tax. It is easy to overlook these charges and this is why it is so important to hire a local tax expert.
Starting a business in Taiwan can be very complicated and you are likely to run into a lot of challenges. That said, it is an excellent market for companies that are willing to do the work.