Taiwan Law

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Legal support for companies and individuals doing business in Taiwan.

The US-China trade war and the COVID-19 pandemic have reinforced to many businesses the importance of a diversified supply chain, and many of our clients from all over the world that are moving manufacturing out of China are moving some or all of that to Taiwan. This process predated the current US-China trade war, and companies in the information and communications technology (ICT) industries have long favored Taiwan for its rule of law, intellectual property rights protection, strong supply chain and logistics, highly skilled labor force and higher levels of productivity and quality control. In addition, there is very little corruption in Taiwan, and Taiwanese companies have a well-deserved reputation for reliability and trustworthiness. Labor and overhead costs can be higher, but especially labor costs have escalated in China over the past decade, and in some cases Taiwan may even be less expensive. And of course, products from Taiwan typically face lower tariffs than those from China.

Taiwan’s USD586 billion economy makes it the United States’ 10th largest goods trading partner, with bilateral goods and services totaling an estimated USD103.9 billion in 2019. Taiwan’s top exports include electrical equipment, machinery, computers, plastics, medical apparatus and mineral fuels.

The Taiwanese government offers investment incentives and continues to upgrade the country’s physical and digital infrastructure, factors that contribute to increasing U.S. foreign direct investment, which totaled USD 17.4 billion in 2019, a 4.8% increase over 2018.

Establishing manufacturing facilities and a logistics infrastructure are complicated processes, and missteps can cost millions. Our deep knowledge of local laws and business and regulatory environment allow us to help our clients identify the most appropriate manufacturing model and operational framework for them in Taiwan.

For companies considering an investment in operations or manufacturing in Taiwan, questions we can help answer include:

  • What ownership structures are permitted for foreign businesses?
  • What are the tax implications of manufacturing and operating in Taiwan?
  • Are there special economic zones that offer benefits such as reduced tax and reduced land cost?
  • Have some industries been targeted to receive additional tax and other incentives?
  • Has Taiwan offered incentives for companies relocating manufacturing from China?
  • Are there any special challenges to obtaining visas for foreign workers, e.g. executives and experts?
  • What are the prospects for Taiwan joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)?

We have decades of experience providing counsel to clients operating throughout the Asia-Pacific region; we understand the laws, the legal systems, the regulatory environments and the broader global trade context, and our advice takes into account all these elements as we help our clients develop winning strategies.

We support our clients’ establishment and operation of businesses and manufacturing operations by writing strong bilingual contracts, ensuring their intellectual property is protected, and conducting thorough due diligence. We also assist with entity formation, statutory compliance, operations finance and local partnerships, and we have successfully resolved countless legal disputes.

Our deep knowledge of local laws and business and regulatory environments also allows us to help our clients identify appropriate manufacturing models and operational frameworks, and we provide counsel on sourcing and cost optimization quality control and productivity/process improvement, as well as relationship management.

Harris Bricken’s bold, innovative and connected approach has made us a leading name in international law, and no matter the country or the industry, our staunch commitment to the success of our clients remains the same.