Taiwan Government change regulation of manager's work pemit

[Lord Lucan]

Would your residency be an issue?

If so, become a chief rep of Richard Bingham escape artists Ltd.

Yes, something like that: "Aristos Abroad"; "Lords on the Lam"....

[headhonchoII]

I'm not sure where I stand on this because there is a difficult balance between making sure that companies are not set up as an easy vehicle for visas and encouraging investment from the small companies that keep Taiwan going.

Honestly, I think the figures are about right.

I think the first year revenue requirement may be a little high but then bear in mind that to get US residency based on investment you will need to put up at least US$1m in most states.

It's a harsh thing to say but if you are not bringing in at least $3m turnover per year then you almost certainly cannot afford to employ anyone, you are not paying much in taxes and are not sending a lot of business to local suppliers. Therefore you are not a very attractive prospect from an economic perspective. If you don't have access to $500,000 capital then what kind of business are you going to set up that is worth Taiwan offering you a resident visa?

The Investment Commission will let you set the company up though, even with NT$200k in capital. Then you can't get a work permit, raising the question "why did you let me set the thing up in the first place?"

Also, a one-man management consultant can make many millions of NT$ a year with no more than an office, a laptop, a fax machine, and a mobile phone. The partnership I was in in Shanghai made millions of RMB with exactly that set-up. We had to put in RMB100k and had no idea what to do with it. I did buy a really nice office chair though.

My office in Taipei which I can't use cost NT$60k to set up. I'm going to spend the other NT$140k on beer. It is going to be very silly if I'm going to have to start again with half a million, especially now that I've already set the whole thing up!!!

You only have to show the capital in bank account on day of registration, not keep it or even spend it (as per my experience).

[headhonchoII]

I was running a company on a student visa. You are allowed run your own company even without a work permit, but you need some way to have residence in the country of course.

[llary]

I was running a company on a student visa. You are allowed run your own company even without a work permit, but you need some way to have residence in the country of course.

Please be careful - if we are talking about the letter of the law then you are not legally allowed to do any work (even for your own company or as a volunteer) without the correct permission. Of course if you have an internet company or web design business on the side then nobody is going to know or care. However if you start getting bigger or do anything with a visible presence then it's vital to get the correct documentation.

I am not trying to make a big deal out of this but I have seen a disgusting number of instances in the past few months where foreigners have shopped other foreigners for minor infractions of labor law out of jealousy, annoyance or just plain malace. So if you are going to run a business on the side then just be aware of your legal position and be a little careful.

[llary]

The Investment Commission will let you set the company up though, even with NT$200k in capital. Then you can't get a work permit, raising the question "why did you let me set the thing up in the first place?"

I own a US company but don't need to live or work there because someone else runs it for me. In Taiwan I know quite a few people with a similar arrangement where they come here for maybe 2 months a year and have a management staff who do all the day-to-day work.

Also, a one-man management consultant can make many millions of NT$ a year with no more than an office, a laptop, a fax machine, and a mobile phone. The partnership I was in in Shanghai made millions of RMB with exactly that set-up. We had to put in RMB100k and had no idea what to do with it. I did buy a really nice office chair though.

I am just playing devil's advocate here but the industrial development arm of MOEA is mainly interested in larger companies who are going to be employing local staff and making exports. Therefore I don't think there is any incentive for them to change the current system to benefit lone consultants. However there are still plenty of creative ways to do something like this with little expense using either a branch office or rep. office format. I'm disappointed that most CPAs are still not advising their clients about these very attractive options.

[headhonchoII]

Actually when I ran my web services company I believe I was legal to do this as I was the director and therefore entitled to run the operation and its investments. It is a bit of a grey area I guess. I am married now so have no such issue.

[headhonchoII]

I also agree branch or rep office is the way to go for small scale operation.

[Lord Lucan]

I like the Taiwanese government logic. Presumably I have already broken the law by furnishing my office and talking business with potential clients. God help me if I were to issue a Fa Piao!

Anyway, cheers for the thoughts and I'll see what happens next week...

[ichbinjenny]

I also agree branch or rep office is the way to go for small scale operation.

Correct me if I am wrong (please!), but branch/rep manager work permits do not apply towards the 5 years' employment required for permanent residency and the open work permit. Am I wrong?

[llary]

Correct me if I am wrong (please!), but branch/rep manager work permits do not apply towards the 5 years' employment required for permanent residency and the open work permit. Am I wrong?

Wrong, only a student ARC would not count for permanent residency or citizenship.