Doing business in Taiwan with a PEO / Employer of Record
Taiwan enjoys a rapidly growing economy with increasing global importance, primarily based on export businesses but increasingly developing profitable industries in education, finance, and chemicals. With a well-educated population of over 23.5 million people, Taiwan is considered to have a strong workforce with incredible talent potential. Businesses looking to capitalize on the opportunities in Taiwan should consider the use of a professional employer organization (PEO) or employer of record (EOR), which can ensure that all labor activities are compliant with the – at times complex – legal system in Taiwan.
Read more to discover the benefits of using a PEO in Taiwan, and get rankings of the best Taiwan PEOs/EORs.
Why Use a PEO/EOR in Taiwan?
Although much of the business culture in Taiwan has been influenced to an extent by western practices, it remains the case that businesses looking to enter the Taiwan markets for the first time are likely to need considerable expert assistance in setting up and maintaining their business from a regulatory standpoint. Establishing an entity in Taiwan is certainly one option, but many businesses want the option of testing the markets first or establishing a small team for a temporary assignment. These set ups are perfectly suited to PEOs/EORs, who can handle everything from getting contracts drafted by local lawyers to managing any staff conflicts that may arise.
Best Taiwan PEOs & Employer of Record
Numerous international and Asian businesses choose Horizons to serve as their PEO / Employer of Record in Taiwan. The company has local consultants in Taiwan who are well placed to assist with a range of matters from obtaining contracts in the Taiwanese language through to setting up social security and tax contributions. Unlike many other PEOs/EORs in Asia, Horizons is placed to manage not only the legal and regulatory matters involved in starting a business in Taiwan, but is also able to consult staff on what to expect of Taiwanese business culture and practices, making them a great all-round partner for expansion into Taiwan.
GlobalizationPedia identified some of Horizons’ key advantages compared to its competitors:
- A 100% Horizons-owned entity in Taiwan.
- Local office in Taipei, in addition to the offices in Berlin, Toronto, Shanghai, and Texas.
- HR & legal experts on the ground in Taiwan to ensure any hiring project there is smooth.
- Extremely competitive pricing, and a scalable pricing model that gets even more affordable the more employees you hire.
Global PEO has a global presence in over 100 countries worldwide, featuring workforce solutions that allow clients to interface with HR and payroll areas while remaining remote. For new companies that have found their own local specialists in Taiwan, they can offload HR support issues to their all-purpose system.
Global PEO promotes fast onboarding and recruitment solutions as they handle hiring and workforce management as the legal employer.
International Acumen offers international PEO/EOR services, including in Taiwan. They boast being able to set up employment solutions in Taiwan without the headaches of bureaucracy, although how they do this is not particularly clear from their website. International Acumen may be best suited to companies looking to place a small number of employees in a number of countries worldwide, as their solutions can be used globally.
Why are Deel, Remote, or other companies missing?
Deel, Remote, and other market-leading EORs are fine companies – but they may not be the best choice for hiring in Taiwan due to several factors:
- Such companies often prioritize hyper-growth, driven by investor demands for rapid expansion, over ensuring compliance with local regulations and protecting the interests of their customers. This can lead to potential legal and financial risks for companies utilizing their EOR services.
Example: A company focused on hyper-growth might encourage employers to hire de-facto employees as contractors, opening the client up to employee misclassification risk unnecessarily.
- In the past, we’ve seen that such ‘young & tech-driven’ providers may not meet the necessary license requirements for providing EOR services in Taiwan – as may take years to apply for – further jeopardizing compliance.
Example: As well as jeopardizing compliance, employers who want to hire foreign employees in Taiwan must follow procedure carefully to be approved. Ask questions to make sure the Taiwan EOR or Taiwan PEO you are working with know their way around the policies and procedures of Taiwan hiring.
- Relying on a virtual-only support team can make it challenging to address any issues or concerns that may arise, potentially causing delays or disruptions in operations.
Example: If there are no local support staff in-country, your Taiwan employees may be left without answers to their important questions. If you go with a company that outsources their support staff to another time zone or to non-HR specialists, you risk losing candidates, or worse, employees.
As such, it is recommended to carefully evaluate EOR providers based on their track record of compliance, experience in Taiwan, and support capabilities, rather than solely on their growth and pricing potential.
Request a Proposal
If your business is interested in expanding your operations into Taiwan, GlobalizationPedia can connect you with a PEO that best fits your needs at a cost-effective price. Fill out the form below today and we’ll leverage our extensive database of strategic partnerships to provide you with a full rundown of the best potential PEO matches for your company.