China vs Taiwan

Foreign-invested companies in China (commonly a WFOE or joint venture) register with the State Administration for Market Regulation (SAMR) and obtain a unified business license. Setup involves name approval, registered capital, a business scope and post-registration tax and bank steps.

You reserve the company name with the Ministry of Economic Affairs (MOEA), verify the paid-in capital through a CPA, and register the company with the MOEA. Foreign investment needs approval from the Investment Review Office; after registration you complete tax registration and receive a unified business number.

China's banking is dominated by large state banks and is highly digital (Alipay and WeChat Pay are used almost everywhere). Foreigners can open accounts with a passport and often proof of local ties; a Chinese phone number is usually needed for mobile payments. The People's Bank of China is the central bank.

A valid Alien Resident Certificate (ARC) plus your passport is the standard way to open a personal account; you also need a local phone number, an email and proof of a Taiwan residential address (not a PO box or hotel). Without an ARC you can open a basic savings account at Chunghwa Post using a Record of ID No., and some banks accept a passport with a temporary immigration ID at their discretion. The FSC regulates banks and the Central Deposit Insurance Corporation insures deposits. A company uses its registration documents.

Foreign investment in China is governed by the Foreign Investment Law and a 'negative list' that limits or bars certain sectors; outside the list, foreign investors get national treatment. You set up a WFOE or joint venture, register with the authorities, and manage capital and profit repatriation under SAFE foreign-exchange rules; free-trade zones offer openings.

Taiwan attracts foreign investment through InvestTaiwan, but foreign investment generally needs Foreign Investment Approval (FIA) from the Investment Review Division of the Ministry of Economic Affairs. Most sectors are open (mainland-China capital is restricted); incentives support high-tech and innovation, and profits repatriate through banks with reporting.

China's main taxes are Individual Income Tax (IIT), Corporate Income Tax and VAT, administered by the State Taxation Administration. Tax residents (generally 183+ days) are taxed on worldwide income, with a six-year rule easing this for some foreigners.

Taiwan taxes residents on Taiwan-source income at progressive rates (with a separate alternative minimum tax on certain foreign income). You use your ID/tax number, employers withhold monthly, and the annual income tax return is filed in May; business tax (VAT) applies.

Foreigners generally work in China on a Z visa, obtained after securing a job and a work-permit notification, then converted to a work-type residence permit after arrival. The employer and local foreigner-work authorities drive the process; there is no general work visa without an employer.

Skilled foreign professionals can use the Employment Gold Card, a combined work permit, resident visa and residence permit; otherwise the employer applies for a work permit from the Ministry of Labor and you obtain a resident visa and an Alien Resident Certificate (ARC).

Chinese employment requires a written labour contract within a month of starting; local minimum wages apply, the standard week is 40 hours with capped overtime, and statutory paid annual leave runs 5-15 days by total service. Employers must pay the 'five insurances and one housing fund'; disputes go to labour arbitration before the courts.

Taiwanese employment under the Labor Standards Act sets a statutory minimum wage, special (annual) leave rising with service, a 6% employer pension contribution, and labour insurance plus National Health Insurance. Dismissal needs statutory grounds with severance and notice, and disputes go through mediation and the labour courts.

Chinese trade clears through China Customs (GACC). You record-file as a consignee/consignor, then declare via the China International Trade Single Window. Goods are classified by HS code for import duty plus import VAT (usually 13%) and, for some products, consumption tax. Controlled goods need MOFCOM licences; advance rulings give certainty.

Taiwanese trade clears through the Customs Administration. Traders register with the Bureau of Foreign Trade, classify goods by the CCC code (HS-based), and pay import duty plus 5% business tax (VAT) and, on some products, commodity tax. Declarations are electronic; certain goods need import permits.

Chinese trademarks are registered with the China National Intellectual Property Administration (CNIPA). China is strictly first-to-file, so registering early is essential. You search the register, file under the Chinese sub-class system, and after examination the mark publishes for a three-month opposition period. A Chinese trademark lasts 10 years and is renewable.

Taiwanese trademarks are registered with the Taiwan Intellectual Property Office (TIPO). You search the register, file under Nice classes, and TIPO substantively examines the mark before registration, with post-registration opposition available. A Taiwanese trademark lasts 10 years and is renewable; Taiwan is not a Madrid member, so file directly.