Taiwan Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in taiwan, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Using an Agent or Distributor

Most foreign firms gain their initial foothold in the Taiwan market by appointing a local agent. The prospect of an agent relationship appeals to many Taiwan firms. If the size of the market warrants, companies may consider setting up a branch office or subsidiary in Taiwan.

The American Institute in Taiwan’s (AIT) Commercial Section provides several services to help U.S. firms export their goods and services to Taiwan. Through the AIT office in Taipei (covering northern and central Taiwan) and the branch office in Kaohsiung (covering southern Taiwan), we offer a variety of resources and services to help U.S. companies enter the Taiwan market, including market research, agent or distributor searches, trade missions, trade shows, business matchmaking, due diligence checks on potential business partners, product launches, and commercial advocacy. To receive this assistance, the first step is to contact your local U.S. Export Assistance Center to discuss which services you may require. These offices can help U.S. exporters determine which international markets are suitable for their products and services. Alternatively, contact information for the AIT Commercial Section is as follows:

AIT Commercial Section (Taipei)
Tel: 886-2-2162-2000
Fax: 886-2-2162-2519
Email: office.taipei@trade.gov

AIT Commercial Section (Kaohsiung)
Tel: 886-7-335-5006
Fax: 886-7-338-0551
Email: office.kaohsiung@trade.gov

Establishing an Office

When setting up a subsidiary, branch, or representative office in Taiwan, it’s important to be aware of the logistical requirements and the various forms and procedures involved. Companies must also register a name in Traditional Chinese. For newly established firms, it is highly advisable to consult with local attorneys and accountants to ensure compliance with industry-specific regulations and to efficiently complete all necessary steps for establishing a legal entity.

The Ministry of Economic Affairs (MOEA) provides information on investing and setting up a company in Taiwan through the InvesTaiwan office. InvesTaiwan can also be reached by phone at +886-2-2311-2031.

For the latest Investment Climate Statement (ICS) which includes information on investment and business environments in foreign economies pertinent to establishing and operating an office and to hiring employees, visit the U.S. Department of State’s Investment Climate Statements website.

Franchising

Overview

Taiwan is well-known for its high concentration of franchises in multiple industries, including dining, shopping, beauty and health, real estate, technology, and education. As of May 2022, the top ten U.S. franchises in Taiwan by number of stores were Starbucks (564), McDonalds (409), Pizza Hut (311), Domino’s (189), Kentucky Fried Chicken (189), Subway (130), Burger King (96), Cold Stone Ice Creamery (42), Haagen-Dazs (36), and TGI Fridays (18).

According to research by the Taiwan Chain Stores and Franchise Association (TCFA), franchise brands in 2024 increased by 2.1 percent to 2,984 brands. This research covers retail, food and beverage, and other service sectors. There is a total of 122,610 chain stores in Taiwan, including 55,873 company-owned stores that have reported an annual growth rate of 1.2 percent, and 66,737 franchise stores that have reported an annual growth rate of 1.2 percent.

The food and beverage franchise market in Taiwan is highly saturated and extremely competitive. Fierce local competition and the established presence of well-known international brands make it difficult for foreign firms with limited brand recognition in Taiwan to enter the market unless the brand is well-positioned. Taiwan’s consumers enjoy a moderately high standard of living and pay close attention to famous or high-end brand names, as well as exciting new products coming into the market. Consumers often line up for hours to attend the grand openings or pop-up stores of internationally recognized franchises that are new to Taiwan, as lining up for the first taste of newly arrived foreign brands has become a popular trend and social phenomenon. Another challenge is high real estate prices, particularly in Taipei, which can cause difficulties when negotiating reasonable rent and lease terms with local landlords.

In recent years, Taiwan’s retail market has undergone a significant transformation marked by increased consolidation and rapid digital expansion. A standout example is PX Mart’s high-profile acquisition of RT-Mart, approved in 2022, which led to a combined market share of over 41% in Taiwan’s supermarket and hypermarket sector. This consolidation was intended to bring operational efficiencies and improved consumer experience, though it also raised concerns over market dominance and prompted regulatory conditions to preserve competition. The first runner-up is Costco with its 26.6% market share and Carrefour 14.9%.

Facing an acute staff shortage due to Taiwan’s aging population, declining birthrate, and less competitive working conditions, franchise industry is increasingly turning to automation to maintain service quality and support business growth. Despite higher wages and government subsidies, recruitment remains sluggish, pushing more franchises and operators to adopt digital solutions, automated ordering, self-service kiosks, and other process automation technologies to reduce manpower dependency and ensure operational efficiency in a challenging labor market.

Best Prospects for U.S. Franchisors

There is great potential for U.S. franchisors in Taiwan’s green diet market. Healthy diets have become fashionable in Taiwan. Taiwan has three million vegetarians, making up 13.8 percent of the population, ranking second in the world. The vegetarian market value is $2 billion per year. Taiwan is moving toward “super-aged society” status by 2026, over one-fifth of the population will be 65 or older. Demand is expected to surge for senior care, in-home health services, elderly fitness programs, and age-friendly retail. Franchises with proven systems in elder care, physical therapy, elderly-friendly food, and life support services are particularly welcome.

Premium food & beverage concepts are another area of opportunity for U.S. franchisors. While the food and beverage franchise sector is highly competitive, well-known international brands featuring premium, innovative, or niche offerings (such as specialty coffee, functional beverages, and global fusion cuisine) can find success if they differentiate through brand power and local adaptation. There is a trend for high end, health oriented, and experience driven dining versus traditional fast food models.

Also, Taiwan’s tech-savvy, urban population drives growth in digital transformation. Franchises offering smart retail, e-commerce support, mobile app-based services, and digital marketing are well-positioned. Automation and AI-powered systems for franchise efficiency and customer engagement are increasingly sought after by local partners.

Local Regulations

  • Fair Trade Commission Disposal Directions (Guidelines) on the Business Practices of Franchisors

  • Consumer Protection Act

  • Act Governing Food Safety and Sanitation

  • Trademark Act

  • Commodity Labeling Act

  • Business Entity Accounting Act

  • Personal Data Protection Act

  • Local Franchise Association

  • Association of Chain and Franchise Promotion, Taiwan

  • Taiwan Chain Stores and Franchise Association

Trade Events

In most major industries, industry associations work with the Taiwan External Trade Development Council (TAITRA) to organize local trade shows. Participating in major trade shows and advertising in relevant Taiwan trade publications are effective ways to boost sales in the market.

Information about upcoming trade shows in Taiwan is available on TAITRA’s website. TAITRA also offers several helpful lists, including a frequently updated calendar of TAITRA-sponsored international conferences, and exhibitions held at the Taipei World Trade Center and the Nangang Exhibition Center.

The largest local franchise exhibition, International Chain and Franchise Exhibition, is organized by the Association of Chain and Franchise Promotion, Taiwan (ACFPT). There are two exhibitions (summer and autumn) in Taipei, one in Kaohsiung, and one in Taichung. ACFPT also organizes online matchmaking events.

Direct Marketing

Multi-level marketing remains a significant sales channel in Taiwan. Approximately 370 multi-level marketing businesses have completed registration, with about 3.486 million participants (15% of Taiwan’s population). The industry’s aggregate annual sales exceed NT$100 billion. These firms primarily operate in dietary supplements, healthcare, skincare, and household products. (Source: Fair Trade Commission)

Joint Ventures/Licensing

Foreign investors who wish to establish new enterprises in Taiwan through joint ventures, technical licensing, or other methods must file an application for approval by the Investment Commission (IC) of the Ministry of Economic Affairs (MOEA). The IC should issue a decision within two months of receiving a completed application. Capital should not be remitted for a joint venture investment until approvals have been obtained. Information regarding regulations for approval and consideration of foreign investment or technical cooperation is available at the Investment Commission website.

Express Delivery

Taiwan possesses a highly developed logistics and express delivery infrastructure, underpinned by a dynamic e-commerce environment and a consumer base that increasingly demands fast and dependable service. The express delivery market is highly competitive, comprising both international and domestic providers offering time-definite shipments and value-added logistics solutions.

Taiwan’s customs procedures are generally transparent and efficient. Shipments with a declared value below the de minimis threshold—currently NT$2,000 (approximately US$ $60)—qualify for simplified customs clearance and do not require a formal declaration. However, for shipments exceeding this value, import duties, commodity taxes, and value-added tax (VAT) may apply. Additional documentation, such as commercial invoices or certificates of origin, is often required. Delays in customs clearance may occur if documentation is incomplete or if items are selected for inspection.

The fastest door-to-door express delivery services from major U.S. cities can reach Taiwan within two to three business days. On average, shipments arrive within three to five business days. Taiwan’s express delivery sector is serviced by prominent global logistics providers, including FedEx, UPS, and DHL, alongside strong domestic firms such as T-Cat (Black Cat), HCT Logistics, and Kerry TJ Logistics. These companies offer comprehensive logistics solutions to meet a wide range of customer needs. Major express delivery companies in Taiwan are as below:

  • Airlife Freight (Taiwan) Corp.
    1F, No. 8, Lane 389, Sec. 5, Nanking E. Rd., Taipei 105, Taiwan
    Tel: +886-2-2764-7711
    Fax: +886-2-2769-2558
    Email: airlife@airlife-freight.com

  • CNA International Logistics Co., Ltd.
    2F, No. 158, Sec. 1, Xinsheng S. Rd., Taipei 10061, Taiwan
    Tel: +886-2-2394-6699
    Fax: +886-2-2394-7799
    Email: service@caie.com.tw

  • DHL Taiwan
    1F, No. 82, Sec. 2, Jianguo N. Rd., Zhongshan Dist., Taipei 10416, Taiwan
    Tel: +886-2-2503-6858
    Fax: +886-2-2505-0768

  • Federal Express Corporation (FedEx), Taiwan
    9F, No. 162, Sec. 2, Chang’an E. Rd., Zhongshan Dist., Taipei 10491, Taiwan
    Tel: +886-2-2181-1973

  • UPS International Inc. – Taiwan Branch Office
    2F, No. 361, Danan Rd., Shilin Dist., Taipei 11161, Taiwan
    Customer Toll-Free: 0800-365-868
    Overseas: +886-2-2383-3868

  • United China Air Freight Co., Ltd.
    1F, No. 105, Sec. 2, Jiuzong Rd., Neihu Dist., Taipei 11494, Taiwan
    Tel: +886-2-8791-9166
    Fax: +886-2-8791-9260
    Email: service@ucf.com.tw

Due Diligence

Prior to establishing a new relationship with a Taiwan company, it is wise to conduct a background check on the company. Though Taiwan’s privacy laws often make it difficult to collect background information on individuals, local attorneys, accountants, and trade/industry associations can be excellent sources of information.

The AIT Commercial Section offers an International Company Profile (ICP) service to help U.S. firms conduct background checks in Taiwan.

Below please find our services in Taiwan:

  • AIT Commercial Section Services

  • Commercial Service: International Company Profile (ICP) Service

The most common distribution route in Taiwan moves products from suppliers to distributors, from distributors to retailers, and then from retailers to consumers. Some suppliers shorten distribution channels by distributing products directly through retailers. Multi-level marketing is common in Taiwan, and direct selling organizations are well established. Foreign firms, especially those selling high-end merchandise, often rely on agents to connect them with distributors. However, for certain products, such as apparel, distribution channels tend to be more complex.

Among Taiwan’s seven major ports, Kaohsiung and Keelung are the biggest, handling the bulk of traded goods and serving as the starting point for island-wide distribution networks. Also important is the Port of Taichung, which handles raw materials and commodities for energy and heavy industry. 

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

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