An Aussie in Taiwan - Life & Business in a foreign country
I am an Aussie that moved to Taiwan in June 2010 to create a new business based in Taipei. This blog will capture my experiences, observations, frustrations, daily life, and hopefully provide a small window for the reader to see what modern day Taiwan and its people are like, and how a foreign entrepreneur goes about trying to establish a successful business in a very foreign land and set of customs.
Thursday 2 September 2010
What a day - thank you HSBC.
Over the past couple of weeks I have been quite frustrated at the amount of time and red tape “BS” it takes to get some things done. For example, last week I went to the Household Registration office to update our records to advise them that we had moved residence from Zao Chiao to Taipei. I took all forms of ID including passport, ARC card, my wife’s ID card and Drivers License plus a copy of the lease document for where we are living. Not good enough. They wanted to sight some other document that I think may have been something like a property tax notice or similar. So we had to call the landlord and get him down to the office too with that document. He was able to leave after about 20 minutes. In total I was there for around 2.5 hours to get the address on an ID card updated.
The next day I went to China Trust Bank to organise an online banking facility as I am getting very tired of paying for everything in cash. It took almost 2 hours to get the paperwork filled out and satisfy the bank. At China Trust Bank no one speaks English but that is not the reason for things taking so long, I had Claire with me and she is fluent in Chinese and English.
After a few days the bank sent a guy to our office with a secure card reader and 3 smart cards. He provided some training and I got the online banking from China Trust working but it is only available in Chinese.
In my experience government departments and banks here are incredibly anal on paperwork and compliance. It appears that no one wants to make a decision in case it is wrong and they look bad or it affects their career path. So they go and talk with someone else and someone else again.
This compliance mentality is also very prevalent in the area of business expenses. It is not enough to just have the receipt for a business expense. At the time of purchase you have to advise them of your unique business ID and get it printed on the receipt or you cannot claim the expense. If I incur an expense in my name on behalf of the business with rare exception I cannot claim that as a business expense because the business number is not on it.
If I pay for some service overseas such as getting someone to design a product label for me or write some software, or any other such item that is not physically shipped through Taiwan customs, if I want to claim that as a company expense I have to pay 20% tax on the amount first.
Today was quite a day. I learned something. I received an email from my accountant who is processing the mountain of expense receipts and bank statements that I gave them recently. The email said that I owe the tax department some money, associated with my office lease. About NT$3,000 (AU$ 107/US$94) per month that we have leased the office. I spoke with Claire to try and understand what was going on.
We have a lease document (all in Chinese), and the lease document says that the monthly rental is NT$26,000, plus some expenses such as security, electricity, etc. (NT$26,000 is about AU$897, or US$815, it is not a lot of money but it is a small office in a very good neighbourhood.)
Anyway after drilling down and drilling down I find out that there is a clause in the lease that says if you want to claim this office lease expenditure as a business expense then you are required to pay the associated tax. What this really means is that the landlord is not going to declare to the tax office the income that I pay them for leasing the office. If I claim that expenditure as a business expense, which effectively alerts the tax office to the income the landlord received, then I have to pay the tax that the landlord would have had to pay the tax office if he declared the income. I cannot believe that they can be so blatant about tax avoidance.
There have been many times where I have bought a small item and then when I ask for a receipt with my business number on it they charge me a higher price.
As I understand it now – there are two prices available in a surprisingly large number of businesses the legal price and the illegal price. I cannot believe given how anal government departments and banks are, how open and widespread this practice of non-declaration of income and tax avoidance is.
On a more positive note given the amount of pain and frustration when going to the bank, I decided to look for another bank, hopefully one where some English was spoken. I had looked at the HSBC bank website and found that they had a branch near my office. The website was a promising start as it is available in both Chinese and English. So I decided to go there and find out more.
It was the best banking experience I have ever had anywhere. It was more like entering a 5 star hotel. The service was excellent from start to finish. The security guard opened the door and welcomed me in English. Then a lady in a smart uniform came up to me and asked in English how they could help me today. I said I was interested in opening an account. She took me to a well appointed lounge area and asked me to take a seat why she located someone to help me. She asked if I would like a tea, coffee or cool drink. Normally I would not have a coffee because you can get some horrible stuff served up, but my first impression was very good and I decided to see how far the excellence went.
Before the coffee arrived a guy arrived introduced himself and took us into a private office. He asked a few questions to determine my banking needs and then said that he was in the personal banking area and that he would get someone from commercial banking to assist me.
While he was gone the coffee arrived and it was good. I was thinking I might have to find reasons to visit the bank when I was in the mood for a good coffee.
Another gentleman entered the office and introduced himself. He was the assistant VP of Commercial Banking. He sat down and explained the bank’s services, and some of the features and benefits of their services. No question of mine was left unanswered and there were no areas where I was left wondering if I really understood correctly what they were saying.
I said I wanted to open an account straight away. The paperwork took almost no time to complete and all forms bar one were in English. He required one document that I did not have with me. He offered to ring my accountant and get it directly.
Late this afternoon I received an email from him. He updated me on the timing of my account progress and supplied me the contact details of my account manager and told me that this guy is the best guy they have.
What a world of difference between China Trust Bank and HSBC. As I already stated, the service that I received today from HSBC Bank at Neihu was the best I have experienced anywhere and I will highly recommend them to any foreigner working in Taipei.
Wednesday 1 September 2010
Living in the shoebox, a trip to hospital, and the new arrival
Well we have been in the new apartment for 3 weeks now. What looked like a sizeable enough space when completely empty, soon filled up.
The apartment is much smaller than what we are used to in Australia and there have been some teething problems. For the first week there were boxes everywhere, no furniture other than our beds, and one chair, and we were all a little touchy operating in this crowded environment.
The apartment is much smaller than what we are used to in Australia and there have been some teething problems. For the first week there were boxes everywhere, no furniture other than our beds, and one chair, and we were all a little touchy operating in this crowded environment.
We still have lots of things in boxes. One of the bedrooms is full of boxes and is basically a no-go zone… unless you really want something very badly and have some idea exactly which box it might be in. Even though we only brought about one third of our belongings from Australia, we still brought too much. If I had to do it again I would bring much less. I believe most of us in the west have too much stuff. Much of it clogs our life and becomes a hindrance to us.
I had a 20 foot container to bring our stuff from Australia, We pretty much filled it end to end, but only to about waist high for part of it and very low at the other end. I brought 2 pushbikes – a road bike and a mountain bike. They can be rather awkward to store in a 3 bedroom apartment. One bike might have been a better idea.
I noticed when we were first looking at the apartment that we were about 400 metres from the local telephone exchange building. This has meant that I have scored great internet throughput. I am getting 22.5Mb download and 2Mb upload. Internet access is important as I am now using Skype a lot to talk with business contacts as well as friends and family around the world. Also I have had a couple of small bouts of homesickness and I have been listening to Australian radio over the internet. I have also started experimenting with internet TV – I found a couple of good channels – but there is a ton of rubbish there too.
We now have a new lounge suite, refrigerator, washing machine, microwave and various other items to make life more comfortable. We are still waiting on the kitchen table which should be here next week. Furniture is very well priced compared with Australia, but they also have crazy over the top priced furniture as well if that is your cup of tea.
When we moved in we had no gas – so the first few days was all cold showers. Not a huge issue given the heat and humidity. There is a gas bottle on the balcony which we have to get someone to replace with a full one each time it runs out. I don’t know how long it will last but they can typically replace within 24 hours so it’s not a major problem. Our stove has 2 strong gas burners – these are great for cooking.
The government website for the Taipei Water Department says you can drink the water out of the tap – but all the locals say no way. We were boiling all the tap water before drinking it but this is rather tedious, and it also has a terrible taste to it. When I used it for coffee it made it taste like burnt plastic. For a couple of weeks I was buying 6 litre bottles of drinking water from the local supermarket. These were quite well priced at NT$45 (AU$1.55/US$1.40), but a little inconvenient carrying them on the motor scooter. (I am getting better at loading the scooter up. I can get quite a bit of shopping on it now.)
Rather than carry on with this kind of water trouble we lashed out and bought a high quality water filter that can do all kinds of fancy things. It normally sells for around NT$40,000, but Edwina haggled and got it down to NT$33,000 (AU$1160/US$1030). It gets installed by a plumber and allows you to have filtered drinkable water straight at the tap. The water flows through a series of filters and It removes all “bugs” and bad tastes. You can even program the PH of the water that you get out. Not sure how it does that but you can get high Ph water (alkaline) for drinking which my wife tells me is good for you and for washing fruit and vegies. You can also get low Ph water (acidic) which apparently is good for cleaning your feet if you have athletes foot. I have been sticking with good old Ph 7, and the water tastes fine now.
In amongst all the mayhem of moving in, unpacking, finding and ordering furniture we had the unexpected arrival of our new baby daughter who arrived 3 weeks early. My wife was booked into a hospital located close to her mum’s place which is about 1.5 hours drive from our apartment. When she went into labour at 4AM, I wasn’t prepared to risk having the baby on the side of the road if we didn’t get to that hospital in time. So I played it safe and we went to the military hospital that has a civilian section and is about 500 metres from our apartment. At around 4.45AM my wife got on my scooter with me and I drove her the short distance to the hospital. Five hours later our beautiful daughter arrived… Angelique. (pronounced On-gel-leak. But she is called Angel for short.) Her Chinese name is Bai-Wei (pronounced “buy-way”) which means white flower or Jasmine flower.
When I first arrived at the hospital with Edwina she was taken in to a labour waiting room. She was put on a bed and after and initial examination left to progress further with her labour. I was quite concerned with the cleanliness of that room – there was blood on the stirrups and on the toilet seat from the last patient. I insisted that they get someone to clean it up. Given my new business is about hygiene, I have a heightened awareness of bacteria, viruses, super bugs and all the microbial dangers that lurk in hospitals. So when Edwina was moved to her recovery ward after the birth I went into that room and sprayed it with our germ killing products.
That was really my only concern. No one at the hospital spoke English apart from the doctors, but all the nurses were very helpful the whole time. During the birth I was allowed into the delivery room and it was all over very quickly in the end. They made me wear a medical gown, hat and sleeves over my shoes. These items were made for midgets – not a big Aussie like me. The gown was more like a straight jacket and the sleeves only covered half of my shoes.
There were a few minor issues as she was quite small at birth and weighing in at just 2.2 Kgs so Angel was placed in a humicrib in the intensive care ward. She was incredibly small but always appeared to be strong and I never felt any real concern for her. Angel and Edwina were able to come home just 3 days after the birth. Since arriving back home Edwina has been keeping the milk up to her and Angel is growing rapidly. Both are well.
Saturday 7 August 2010
Finding an apartment
Woo hoo! I have just done my last commute from the boondocks to Taipei. I have been staying with my in-laws for the past 2 months in a small town called Zai Chiao. They operate a hotel and conference centre and I have I have enjoyed living there, but each day I have been travelling by train from Zhunan to Taipei, then by subway to Neihu where my office is located. The 6 hours per day of commuting is now that is at an end.
I signed a lease on an apartment yesterday and I am moving in tomorrow.
Finding an apartment has been an experience. We considered buying a property, but the cost of homes in Taipei compared to the rental prices is way out of whack, so it seems better to rent at this stage. I read an article that said you would have to rent your investment property out for over 50 years just to get your money back. The investors are happy enough to invest the money, get the capital gain as the property goes up in value and use the rent to offset some of the expense.
When looking for the property we made a list of things we wanted such as: be located close to an MRT train station, close to my office, close to schools, minimum of 3 bedrooms, ideally have a designated car parking space, space to park the motor bike, and so forth.
On the most part when living in Taipei you are generally looking at small apartments, unless you want to spend more. We saw a couple of very large places with 5 bedrooms, but these larger places were old and grotty. I prefer “small, new and modern” to “big, old and grotty”.
When looking at apartments the floor space is measured in “ping”. According to the results of a google search I performed, 1 ping = 3.3 square metres. One thing to be wary of is that sometimes people quote a larger ping than you actually have because they are also incorporating common areas such as the lift foyer.
When searching for an apartment we had a look at a few real estate agents, but found online to be a much better way to search and compare. The website that we used was www. rent.591.com.tw . My wife is Taiwanese and can read Chinese no problem, but I was able to look at apartments myself online using the Google Translate option. It’s not perfect, but it’s good enough to get a good understanding of what’s on offer. There are real estate agents that speak English and specialise in helping westerners with their accommodation needs. We did not use these so I cannot comment on these, however I suspect that you would be paying a premium going through these guys.
We were looking for an apartment in the Neihu area. Most 3 bedroom apartments in this area seem to vary from NT$25,000 to $40,000 per month. Also they want 2 or 3 months rental as a security deposit. There are two types of apartment buildings: ones with a lift and ones without. If you are renting in a non lift building the higher the floor, the lower the rental fee. Non lift buildings are meant to be no higher than 6 floors, but that’s not always the case.
Neihu is about 5 kilometres from central Taipei and is the home of the Neihu Technology district where many of the household hi-tech firms are based. Firms such as Acer, Asus, BenQ, etc etc. It also where I have my office located.
Once we had our shortlist of apartments decided, we then printed out the details, rang the owners or agents and made a time to go and inspect the properties. When I say “we rang the owners and agents” I mean my wife did. All communications were in Chinese. So if you can’t speak Chinese it will be very helpful if you have a friend who speaks Chinese to help you.
For 2 days we ran around from place to place checking each property out. We did not find a place that had everything we wanted. There was always one or two things that were missing. I am sure we could have got everything we wanted if we were prepared to pay more, but we were working to a budget.
Once we had it down to the final 2 properties I then took some time to walk around the neighbourhoods to see what they were like, what shops and facilities were there. I also used Google Maps and the satellite view as well to assist.
The place we ended up with was a compromise...
On the positive side it is a brand new fully refurbished apartment, clean and modern with 3 large bedrooms, close to schools, and it is just 2.5 kilometres from my office. With 3 bedrooms we should be able to squeeze friends and family from overseas in for a short time, should they decide to come and visit us.
On the OK side of things it is 1.5 kms from a MRT station, it’s on the second floor (ground is considered first floor in Taiwan) in a non lift building. There is no actual designated car park, but there is a public car park 200 metres away, where we can pay NT$2,500 per month to park a car. It is 28 ping in size which is approximately 92 square metres. They achieve this by having one largish room that has the kitchen at one end and we need to fit the lounge/dining in the same room.
We are located in a laneway off a large road. There are a few restaurants within 50 metres of our home and a Family Mart convenience store (similar to 7 eleven) just 100 metres away. I have not seen them yet but apparently there is a supermarket and a traditional market within 5 minutes walk of the place too.
On the negative side there is no window in the master bedroom, and limited natural light in general.
Overall I like the place and am looking forward to living life as a Taipei-an and a Neihu-an. The apartment as shown in the photos here is empty and as such looks kind of spacious. Tomorrow when we move all our stuff in that arrived from Australia in a container, we will see how much fun living in a shoebox really is.
One good thing to know is that you can generally haggle on the rental price. Our apartment was advertised at $23,000 per month and we haggled down to $20,000. We also had them make a few changes to improve the facilities. The other thing is that if you are an expat the accommodation can be paid by your employer and is a tax deductable expense. There are some rules and regulations around this, such as the lease had to be in the name of my company. Doing this put the rent up from NT$20,000 to 22,000 per month, but in the end being paid out of pre-tax dollars will make it cheaper. I will write more about the Taiwanese tax situation in a separate post.
The lack of car space is not too much of problem as we have decided to see if we can live without a car. To catch a taxi the 1.5 kms from the apartment to the MRT is NT$75, once you are on the MRT you can travel via train to almost anywhere. If we need to do a big shopping trip once again we can use a taxi, and it will be way cheaper than owning a car. Petrol costs around NT$30 per litre, just a little bit cheaper than back home in Australia. Whilst we won’t have a car, I will have my motor scooter which I will use to travel to and from work, and for small errands.
I signed a lease on an apartment yesterday and I am moving in tomorrow.
Finding an apartment has been an experience. We considered buying a property, but the cost of homes in Taipei compared to the rental prices is way out of whack, so it seems better to rent at this stage. I read an article that said you would have to rent your investment property out for over 50 years just to get your money back. The investors are happy enough to invest the money, get the capital gain as the property goes up in value and use the rent to offset some of the expense.
When looking for the property we made a list of things we wanted such as: be located close to an MRT train station, close to my office, close to schools, minimum of 3 bedrooms, ideally have a designated car parking space, space to park the motor bike, and so forth.
On the most part when living in Taipei you are generally looking at small apartments, unless you want to spend more. We saw a couple of very large places with 5 bedrooms, but these larger places were old and grotty. I prefer “small, new and modern” to “big, old and grotty”.
When looking at apartments the floor space is measured in “ping”. According to the results of a google search I performed, 1 ping = 3.3 square metres. One thing to be wary of is that sometimes people quote a larger ping than you actually have because they are also incorporating common areas such as the lift foyer.
When searching for an apartment we had a look at a few real estate agents, but found online to be a much better way to search and compare. The website that we used was www. rent.591.com.tw . My wife is Taiwanese and can read Chinese no problem, but I was able to look at apartments myself online using the Google Translate option. It’s not perfect, but it’s good enough to get a good understanding of what’s on offer. There are real estate agents that speak English and specialise in helping westerners with their accommodation needs. We did not use these so I cannot comment on these, however I suspect that you would be paying a premium going through these guys.
We were looking for an apartment in the Neihu area. Most 3 bedroom apartments in this area seem to vary from NT$25,000 to $40,000 per month. Also they want 2 or 3 months rental as a security deposit. There are two types of apartment buildings: ones with a lift and ones without. If you are renting in a non lift building the higher the floor, the lower the rental fee. Non lift buildings are meant to be no higher than 6 floors, but that’s not always the case.
Neihu is about 5 kilometres from central Taipei and is the home of the Neihu Technology district where many of the household hi-tech firms are based. Firms such as Acer, Asus, BenQ, etc etc. It also where I have my office located.
Once we had our shortlist of apartments decided, we then printed out the details, rang the owners or agents and made a time to go and inspect the properties. When I say “we rang the owners and agents” I mean my wife did. All communications were in Chinese. So if you can’t speak Chinese it will be very helpful if you have a friend who speaks Chinese to help you.
For 2 days we ran around from place to place checking each property out. We did not find a place that had everything we wanted. There was always one or two things that were missing. I am sure we could have got everything we wanted if we were prepared to pay more, but we were working to a budget.
Once we had it down to the final 2 properties I then took some time to walk around the neighbourhoods to see what they were like, what shops and facilities were there. I also used Google Maps and the satellite view as well to assist.
The place we ended up with was a compromise...
On the positive side it is a brand new fully refurbished apartment, clean and modern with 3 large bedrooms, close to schools, and it is just 2.5 kilometres from my office. With 3 bedrooms we should be able to squeeze friends and family from overseas in for a short time, should they decide to come and visit us.
On the OK side of things it is 1.5 kms from a MRT station, it’s on the second floor (ground is considered first floor in Taiwan) in a non lift building. There is no actual designated car park, but there is a public car park 200 metres away, where we can pay NT$2,500 per month to park a car. It is 28 ping in size which is approximately 92 square metres. They achieve this by having one largish room that has the kitchen at one end and we need to fit the lounge/dining in the same room.
We are located in a laneway off a large road. There are a few restaurants within 50 metres of our home and a Family Mart convenience store (similar to 7 eleven) just 100 metres away. I have not seen them yet but apparently there is a supermarket and a traditional market within 5 minutes walk of the place too.
On the negative side there is no window in the master bedroom, and limited natural light in general.
Overall I like the place and am looking forward to living life as a Taipei-an and a Neihu-an. The apartment as shown in the photos here is empty and as such looks kind of spacious. Tomorrow when we move all our stuff in that arrived from Australia in a container, we will see how much fun living in a shoebox really is.
One good thing to know is that you can generally haggle on the rental price. Our apartment was advertised at $23,000 per month and we haggled down to $20,000. We also had them make a few changes to improve the facilities. The other thing is that if you are an expat the accommodation can be paid by your employer and is a tax deductable expense. There are some rules and regulations around this, such as the lease had to be in the name of my company. Doing this put the rent up from NT$20,000 to 22,000 per month, but in the end being paid out of pre-tax dollars will make it cheaper. I will write more about the Taiwanese tax situation in a separate post.
The lack of car space is not too much of problem as we have decided to see if we can live without a car. To catch a taxi the 1.5 kms from the apartment to the MRT is NT$75, once you are on the MRT you can travel via train to almost anywhere. If we need to do a big shopping trip once again we can use a taxi, and it will be way cheaper than owning a car. Petrol costs around NT$30 per litre, just a little bit cheaper than back home in Australia. Whilst we won’t have a car, I will have my motor scooter which I will use to travel to and from work, and for small errands.
Tuesday 3 August 2010
Getting Around
The train and subway system is a great way to get around Taiwan. I am temporarily living in a small town near Zhunan, which is about 100kms south of Taipei. I commute by train to work most days. It is a time consuming affair – about 3 hours each way – door to door.
I bought a little 125cc motor scooter which is a very handy thing for getting around across small distances. It is about 8 kilometres from my home to Zhunan train station, and the scooter is great for this. The reason for getting a scooter instead of a car for this task is all about parking. Parking spaces for cars are near impossible to find.
Motor scooters are everywhere in Taiwan. They are cheap to buy and cheap to run. I bought a second hand scooter with about 15,000 kms on the clock for NT$25,000. You can buy a new scooter for between NT$60,000 to 80,000. Its cost me about NT$105 to fill the tank and that lasts me for at least a week.
Please note that I am using the local currency everywhere because exchange rates can vary wildly over time, and there are too many to worry about. At the time of writing however AU$1 = NT$29, or US$1 = NT$ 31.8.
When I was looking around to buy a scooter I had heard that scooters get stolen and sold to China. So I figured a second hand bike is less likely to stand out and be stolen versus some of the nice new shiny ones that are around. Given the amount of scooters on the road I think you would have to be unlucky to have your bike taken out of the millions on the road.
(A little bit of the gloss with the motor scooter has gone because I have witnessed about 3 incidents in 3 weeks where I have seen scooter riders on the road after coming off second best against a car.)
If you do get a scooter be aware that you need to keep your wits about you when riding in Taiwan. The road laws are more like guidelines than rules. People run red lights like there is no tomorrow (and for some of them that will be true). In Taiwan they drive on the right hand side of the road (same as the USA). For a guy like me having driven on the left hand side of the road in Australia for the past 25 years it takes a little time to adjust. But what really freaks me out is when I am driving on the right hand side of the road, like I should be, and someone in a car or on a scooter is coming directly at me in the same lane. I have to consciously think and make sure that I have not slipped into the wrong lane.
Anyway my recommendation is that a scooter is a great way to get around, but I would not want to be doing really long distances on the scooter.
Back to the trains. Taiwan has a variety of trains for getting around. There is a network called the High Speed Rail (HSR) which is similar to Japan’s bullet trains and allows you to move great distances very quickly. I have not caught one of these trains yet, but I believe that they travel at around 300 kms per hour.
Next level down is the TRA network. Within the TRA network they have express trains and ordinary trains. The best of the express trains are known as “Tze Chiang”. These provide comfortable seating and allow me to work on my computer whilst travelling. My commute from Zhunan to Taipei takes around 90 minutes on the Tze Chiang and costs NT$223. The next level down in train called a “Chu Kuang”; it does the same trip in 2 hours and costs NT$172.
Once you are in Taipei you can utilise the subway which is known as the MRT. The MRT network in Taipei is extensive and growing. The MRT or Metro is very well patronised and is responsible for taking around 1 million cars off the road in Taipei and helping to clean up air quality in Taipei.
During peak hour there are some subway stations where it is controlled chaos. There are just so many people moving through these stations all at once. It is a daily occurrence in a couple of the key stations at peak hour to have queues 200 metres long to get onto the escalator, and security will rope off stairways for a few minutes at a time to stop too many people crowding onto platforms at the same time.
Given the large numbers of users the system runs very well. Commuters line up at designated entry points for the carriages and usually wait for all passengers to get off an arriving train, before surging on. One thing I don’t understand is why they insist in jamming so many people in to a carriage at peak hour when another train is only 30 or 60 seconds away.
Ticket prices on the subway are pretty good. Most trips will cost you between 20 to 40 NT$. They also have a great smart card that you can get and pre pay funds into it. In addition to being very convenient they also provide a substantial discount. A $35 trip becomes a $23 trip.
The other way to get around is via taxi. Nearly every taxi that I have used has been very clean and well maintained, and an oasis of coolness to temporarily escape the heat and humidity of Taiwan’s summer.
Very few taxi drivers know how to speak English so you will need to know how to say your desired destination in Chinese or have someone write it for you in Chinese.
By western standards taxis in Taiwan are very cheap. The flag fall rate for taxi is NT$70 for the first 1.5 kilometres and NT$5 will be charged for every additional 300 meters. A 20% surcharge is added from 23:00 to 6:00 next morning.
Taiwan also has a large network of buses, but I generally prefer trains because I know exactly where they are going.
More information can be found on these train services via the links below:
High Speed Rail (HSR)
Taiwan Rail Administration (TRA)
Metro/Subway (MRT)
Thursday 15 July 2010
Setting Up
Setting up a company in Taiwan as a foreigner is relatively straight forward. I used a larger international accounting company (Grant Thornton International - Taipei) to do this. It cost me NT$80,000 to do this, but communicating with them was simple. This was particularly important as I was in Australia whilst setting up the company. The process takes about 8-10 weeks as it involves getting approval from the Foreign Investment Board.
Prior to going with Grant Thornton I did some searching on expat blogs and forums and found that some foreigners were setting up for as little as $NT30,000, but this was with a local accountant and you needed to be very good with your mandarin.
Be prepared spend time and money to have to get all kinds of documents certified by notorized republics and the local Taiwanese Consulate in your country.
About 3 months prior to setting up the company, I had come to Taiwan and interviewed a potential staff member. I found this candidate (Claire) via LinkedIn.com. I made contact and setup a meeting. Claire had good experience, was fluent in both English and Chinese, and appeared to be trustworthy and have high integrity.
Claire started working for me about 1 month before the company was formally established. I cannot emphasize enough how helpful the local knowledge is, and would recommend that anyone planning to set up in Taiwan ensure that they have a local that they can work with and rely on. There are so many things that I would have hated to have to have performed on my own.
Banking...
I am still coming to grips with the banking system and practices in Taiwan, and have been frustrated a number of times.
When setting up the company, the accountants setup my account to deposit my funds with ChinaTrust Bank. Very few of their staff speak English, so I have been lucky to have Claire to assist me.
I asked for internet banking to be setup, but it is only in Chinese. I asked for a cheque book facility, but they want to “observe” your account for 6 months first. I told them they can observe me transfer my balance to another bank. I am thinking of moving to HSBC bank, will keep you posted on how things turn out. In the meantime I am paying cash for everything.
Other banking observations:
They love paperwork and documentation. Bring everything you have got in the way of ID, company registration papers, etc. Also as a foreigner you cannot setup a new bank account until you have your ARC. (Alien Residency Certificate).
Internet banking is limited to NT$30,000 transfers unless you register the person/business that you are paying as a “nominated account”.
They use “chops” on all official documentation and bank withdrawals. Chops are like a rubber stamp with your name on it in a stylised design. In the case of a company you have a chop for the company and one for the individual too. If you pay an additional NT$100 to the bank you can request that withdrawals from your account require a signature as well as chops.
I got an ATM card which has made banking a lot more practical. As yet I have not been paid any money so I can’t talk about the experience of depositing funds at the bank.
Sunday 27 June 2010
Trade Show... What a week!
For the past 4 days I have been manning a trade show stand at Taiwan Health, in the World Trade Centre in Taipei.
This was to launch the Zoono range of products that my new company is introducing to Taiwan. Zoono is an antimicrobial coating based on breakthrough technology. (long term germ killing protection for hands, surfaces, textiles and more.)
I have spent the past 3 weeks in Taiwan preparing for this trade show, plus a lot of time before that back in Australia. Any hopes I had of perhaps being able to operate the business in English have been quickly abandoned.
Whilst there is some English in Taiwan on things like road signs, train time tables etc, for dealing business to business or business to consumer - if you want to get the message across it has to be in Chinese. You also need a Chinese brand - not a western brand.
For someone that cannot yet speak Chinese this presents some challenges. For now I am creating the marketing messages in English, then getting them translated to Chinese.
Another challenge that I face is with my CRM system. Do I get everything entered in both English and Chinese or just Chinese? I don't know the best strategy for this yet. With my accounting I have outsourced this to a large company that is part of an international chain of accountants. I have done this because: I hate accounting, I don't want to spend my time doing this kind of thing, and they will provide accounting reports in both English and Chinese.
I know I am paying a premium over a local Chinese accountant, but communication is much simpler. Also I was able to haggle and save a few dollars anyway.
The justification that I had given myself for attending the trade show was that I figured it would be a way for us to meet a lot of prospective customers in a very short period of time and gauge the market reaction to our product. I am happy to report that the trade show has accomplished that in spades !!
In 4 days we have handed out about 1,000 flyers on our product offering. We met hundreds of people and have around 70 good leads to follow up on. The very first prospect that I spoke with within 15 minutes of the trade show opening was a guy that is a major distributor to around 2000 pharmacies. It was a great omen.
Taiwan has a lot of trade shows. This one was focused on Health. At the same time this was running there were 2 other trade shows running in the same building.. Seniors Care (SenCare) and Hospitality.
We are booked in for another trade show next month which focuses on Biotech. Hopefully that will be a success too.
The people that visited our stand generally liked what they saw and heard about our product. One thing to note is that they are very keen to see independent proof on any claims made.
I made a lot of new friends during the trade show. The Taiwanese people are very friendly and enjoy a good laugh. The interactions of people from neighbouring stands was very friendly. People from each of the stands would take drinks or snacks and offer them people working on the neighbouring stands. One other observation I have is that it seems accepted practice to eat your lunch while on the trade show stand. This is not something that would happen commonly in Australia.
For the 4 days I was handing out brochures and welcoming people to our stand in Chinese. The Taiwanese seem to like and appreciate you having a go - even if your Chinese is not very good.
The show would have been of no value to me if I did not have my two amazing staff members helping. Clare and Lynne were amazing. Full of energy, always smiling and always doing their best to communicate our message to everyone that came by our stand.
A number of owners of other stands came to me and commented "where did you get such great staff?" A number of them also gave very "non subtle" hints that they would love to have Claire and Lynne come and work for them.
I have to say I am just very lucky that I got such great people on the team, and I think it has something to do with karma.
Now the work begins... following up all these prospects!
Saturday 26 June 2010
My first ever blog post
At the suggestion of a friend (Greg Head), I am writing a blog to tell my story.
I am an Aussie that moved to Taiwan 3 weeks ago to create a new business based in Taipei. This blog will capture my experiences, observations, frustrations, daily life, and hopefully provide a small window for the reader to see what modern day Taiwan and its people are like, and how a foreign entrepreneur goes about trying to establish a successful business in a very foreign land and set of customs.
I am sure this will evolve over time - but this is the goal for now.
Some background....
For the past 25 years I have been involved in the IT industry in Australia. The past 15 years running my own business implementing custom CRM solutions for the SME marketplace based on packages such as SalesLogix and Microsoft CRM.
One thing that I loved about the IT industry is that things are always changing. That kept things interesting. I hate the mundane and have a very short attention span for such things. But after 15 years of designing and implementing CRM systems it was becoming much less satisfying.
In around 2006 I read a book that changed my life. It was called "The Diary of Ma Yan". Ma Yan was a 13 year old schoolgirl living in Ningxia, a very poor province in Northern China, just below Mongolia. The book is her story as recorded in daily entries on scraps of paper of her struggle to get an education, whilst dealing with constant hunger and poverty. When living in such conditions a good education is a means to make a better life and escape poverty.
In November 2008 I was lucky enough to have the opportunity to visit Ningxia and stay with Ma Yan's family and see first hand how people in the region survive with so little. I visited a number of schools in Ningxia and also in Southern China in GuangXi. In GuangXi I was lucky enough to be able to teach a class of 4th graders for a week. Working with these children and interacting with their local community changed my life. Whilst these people have close to nothing - whatever they have they are willing to share with you.
During this trip to China I realised that I want to work full time in the future helping children in poverty get access to education. As part of this I want to learn to speak Chinese fluently and this is a contributing factor in my decision to move to Taiwan.
Another thing that I gained from this trip to China was an ability to appreciate simple things in life that we in the west take for granted such as hot running water, or a sit down toilet that flushes. We have so much compared to many people in the world, and the gap in living standards between the west and those in poverty is not acceptable.
I am an Aussie that moved to Taiwan 3 weeks ago to create a new business based in Taipei. This blog will capture my experiences, observations, frustrations, daily life, and hopefully provide a small window for the reader to see what modern day Taiwan and its people are like, and how a foreign entrepreneur goes about trying to establish a successful business in a very foreign land and set of customs.
I am sure this will evolve over time - but this is the goal for now.
Some background....
For the past 25 years I have been involved in the IT industry in Australia. The past 15 years running my own business implementing custom CRM solutions for the SME marketplace based on packages such as SalesLogix and Microsoft CRM.
One thing that I loved about the IT industry is that things are always changing. That kept things interesting. I hate the mundane and have a very short attention span for such things. But after 15 years of designing and implementing CRM systems it was becoming much less satisfying.
In around 2006 I read a book that changed my life. It was called "The Diary of Ma Yan". Ma Yan was a 13 year old schoolgirl living in Ningxia, a very poor province in Northern China, just below Mongolia. The book is her story as recorded in daily entries on scraps of paper of her struggle to get an education, whilst dealing with constant hunger and poverty. When living in such conditions a good education is a means to make a better life and escape poverty.
In November 2008 I was lucky enough to have the opportunity to visit Ningxia and stay with Ma Yan's family and see first hand how people in the region survive with so little. I visited a number of schools in Ningxia and also in Southern China in GuangXi. In GuangXi I was lucky enough to be able to teach a class of 4th graders for a week. Working with these children and interacting with their local community changed my life. Whilst these people have close to nothing - whatever they have they are willing to share with you.
During this trip to China I realised that I want to work full time in the future helping children in poverty get access to education. As part of this I want to learn to speak Chinese fluently and this is a contributing factor in my decision to move to Taiwan.
Another thing that I gained from this trip to China was an ability to appreciate simple things in life that we in the west take for granted such as hot running water, or a sit down toilet that flushes. We have so much compared to many people in the world, and the gap in living standards between the west and those in poverty is not acceptable.
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