Doing Business 2018 Taiwan, China
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Doing Business 2018 Taiwan, China
Page 1
Doing Business 2018 Taiwan, China
Economy Profile of Taiwan, China
Doing Business 2018 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-
filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2018 Taiwan, China
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present
the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance
observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is
reflected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business
ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to
two decimals.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2018 Taiwan, China
Ease of Doing Business in DB 2018 Rank
Region East Asia & Pacific
190 1
Taiwan, China
Income Category High income 15
DB 2018 Distance to Frontier (DTF)
Population 23,539,816
0 100
City Covered Taipei 80.07
DB 2018 Distance to Frontier (DTF)
0 100
83.92: Korea, Rep. (Rank: 4)
83.44: Hong Kong SAR, China (Rank: 5)
80.07: Taiwan, China (Rank: 15)
78.43: Malaysia (Rank: 24)
75.68: Japan (Rank: 34)
62.70: Regional Average (East Asia & Pacific)
Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the
indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is reflected on a scale from 0 to 100, where 0 represents the
lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Taiwan, China
4 3
1 10
16 18 20
24
28
56 55
55
82 90
Rank
109
136
163
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Distance to Frontier (DTF) on Doing Business topics - Taiwan, China
99.45
100 94.43
86.32 84.94
83.89
77.96 78.63
80 75.11
70.00
60
DTF
50.00
40
20
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2018 Taiwan, China
Starting a Business
This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited
liability company to start up and formally operate in economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and
50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of
local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5
married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators.
The most recent round of data collection for the project was completed in June 2017. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
â— Submitting all relevant documents and obtaining
all necessary clearances, licenses, permits and
The business:
certificates
â— Submitting all required notifications and receiving - Is a limited liability company (or its legal equivalent). If there is more than one type
all necessary inspections of limited liability company in the economy, the most common among domestic firms
is chosen. Information on the most common form is obtained from incorporation
â— Obtaining utility connections for water and
lawyers or the statistical office.
sewerage
- Operates in the economy’s largest business city and the entire office space is
â— Registering and selling the warehouse after its approximately 929 square meters (10,000 square feet). For 11 economies the data
completion are also collected for the second largest business city.
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
Time required to complete each procedure
and has a start-up capital of 10 times income per capita and has a turnover of at
(calendar days)
least 100 times income per capita.
â— Does not include time spent gathering information - Performs general industrial or commercial activities, such as the production or sale
â— Each procedure starts on a separate day (2 of goods or services to the public. The business does not perform foreign trade
procedures cannot start on the same day) activities and does not handle products subject to a special tax regime, for example,
liquor or tobacco. It does not use heavily polluting production processes.
â— Procedures fully completed online are recorded
- Leases the commercial plant or offices and is not a proprietor of real estate and the
as ½ day
amount of the annual lease for the office space is equivalent to 1 times income per
â— Procedure is considered completed once final capita.
document is received - Does not qualify for investment incentives or any special benefits.
â— No prior contact with officials - Has at least 10 and up to 50 employees one month after the commencement of
operations, all of whom are domestic nationals.
Cost required to complete each procedure (% of - Has a company deed 10 pages long.
income per capita)
The owners:
â— Official costs only, no bribes
â— No professional fees unless services required by - Have reached the legal age of majority. If there is no legal age of majority, they are
law or commonly used in practice assumed to be 30 years old.
- Are sane, competent, in good health and have no criminal record.
Paid-in minimum capital (% of income per capita - Are married and the marriage is monogamous and registered with the authorities.
â— Funds deposited in a bank or with third party - Where the answer differs according to the legal system applicable to the woman or
before registration or up to 3 months after man in question (as may be the case in economies where there is legal plurality), the
incorporation answer used will be the one that applies to the majority of the population.
Page 5Doing Business 2018 Taiwan, China
Starting a Business - Taiwan, China
Standardized Company
Legal form Private Company Limited By Shares
Paid-in minimum capital requirement TWD 0
City Covered Taipei
Indicator Taiwan, China East Asia & OECD high Overall Best
Pacific income Performer
Procedure – Men (number) 3 7.0 4.9 1.00 (New Zealand)
Time – Men (days) 10 22.7 8.5 0.50 (New Zealand)
Cost – Men (% of income per capita) 2.0 18.4 3.1 0.00 (United Kingdom)
Procedure – Women (number) 3 7.0 4.9 1.00 (New Zealand)
Time – Women (days) 10 22.8 8.5 0.50 (New Zealand)
Cost – Women (% of income per capita) 2.0 18.4 3.1 0.00 (United Kingdom)
Paid-in min. capital (% of income per capita) 0.0 15.1 8.7 0.00 (113 Economies)
Figure – Starting a Business in Taiwan, China and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
98.14: Hong Kong SAR, China (Rank: 3)
95.83: Korea, Rep. (Rank: 9)
94.43: Taiwan, China (Rank: 16)
84.37: Japan (Rank: 106)
83.78: Malaysia (Rank: 111)
82.32: Regional Average (East Asia & Pacific)
Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a
business. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Page 6Doing Business 2018 Taiwan, China
Figure – Starting a Business in Taiwan, China – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
10 1.8
1.6
Cost (% of income per capita)
8
1.4
1.2
Time (days)
6
1
0.8
4
0.6
0.4
2
0.2
0 0
1 2 3
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2018 Taiwan, China
Details – Starting a Business in Taiwan, China – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Use the online platform to search the name, apply for incorporation and tax 7 days TWD 150 (online
registration, apply for Labor Insurance, National Health Insurance and search) or TWD 300
Pension Plan Report with the Bureau of Labor Insurance and register for (government fee) +
work rules with the Council of Labor Affairs 0.025% of capital (in
Agency : Ministry of Economic Affairs (MOEA)
case the registration
The company can search the availability of the company name and check the legality of
fee payable is less
planned business online. Applications for company registration can be done via the
than TWD 1,000, the
Company and Business One-stop Service Request website
(http://onestop.nat.gov.tw/oss/identity/Identity/init.do). The original company registration registration fee shall
form stamped with the seals of the company must be delivered to the registration be TWD 1,000)
authority. With effective from April 14, 2014, entrepreneurs can apply for company
registration as well as upload the scanned and stamped company registration form using
the Company and Business One-stop Service Request website using an electronic
signature.
The review period has been shortened to 2 days. Therefore the procedure now takes one
day for search, reservation and application. Then the government officials are required to
review the application on the second day. At the end of the second day, (if approved) the
approval is ready, and the applicant can pick it up from the Ministry of Economic Affairs
(MOEA). Otherwise, it is mailed to the applicant, in which case it takes up to four days to
receive the confirmation.
The articles of incorporation for a private limited company must include the company
name, business purpose, shareholders’ contributions, profit-allocation ratio, location of
offices, number and names of directors, manner of issuing public announcements, and the
date the articles of incorporation were adopted.
The application for a taxpayer’s identification number is done at the same time. The
Labor Insurance Bureau now adopts a three-in-one consolidation application (i.e., the
labor insurance application, national health insurance application and the pension plan
appropriation application), so the Labor Insurance Bureau and National Health Insurance
Bureau can now review and process the application at the same time, if all in order, the
Bureau can grant the application in 5 - 7 business days. All firms may apply for national
health insurance (NHI) regardless of the number of employees, but only companies with
five or more employees may apply for labor insurance (LI) (Article 6 of Labor Insurance
Act). National health insurance, labor insurance, and the pension plan report can be filed
with one consolidated form.
Forms can be downloaded from the Bureau of Labor Insurance Web site.
In order to promote the public to use the online website to start a company, on January 16
2013, MOEA announced that companies that file their applications and submit required
documents via on-line registration shall have a reduction of NTD 300 on their registration
fees.
2 Make a company seal 1 day TWD 450 (depending
Agency : Seal maker on the number/
Company registration documents and deeds are sealed (chopped). A set of company seals material used, each
are commonly prepared for registration, including the name of the company, and name of range from TWD 450
the chairperson of the board of directors. These seals are required to be used for future
to TWD 1000)
company updates. Since May 2012, the applicant may prepare such document in the form
of electronic documents prefixed electronic signature to transmit the application package
via One-Stop-Shop Online Application Website electronic mail. Therefore the applicants
still need making seals for registration documents, but they can use electronic signature to
transmit these documents via online website.
3 Submit a CPA audit report showing that the amount of capital invested is 2 days TWD 5,000 - 20,000
sufficient to cover company establishment cost fee varies across
Agency : Ministry of Economic Affairs (MOEA) firms
In place of showing the invested capital will cover the costs of establishing a company to
the Ministry of Economic Affairs; entrepreneurs submit a CPA audit report showing the
invested capital has been fully paid pursuant to Article 7 of Regulations Governing
Certification of Capital upon Registration Applications of Companies (last amended on
June 25, 2013). In addition, Section 1 of Article 7 of Company Act (last amended on
January 4, 2012) allows a company to attach an auditing certificate from an independent
certified public accountant within 30 days after the registration of incorporation.
Entrepreneurs can submit the audit report via the One-Stop-Shop online system using an
electronic signature.
Takes place simultaneously with previous procedure.
Page 8Doing Business 2018 Taiwan, China
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in June 2017. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
â— Submitting all relevant documents and obtaining
The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
â— Submitting all required notifications and receiving largest business city. For 11 economies the data are also collected for the second
all necessary inspections largest business city.
- Is 100% domestically and privately owned; has five owners, none of whom is a
â— Obtaining utility connections for water and
legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage
the local association of architects or engineers. BuildCo is not assumed to have any
â— Registering and selling the warehouse after its other employees who are technical or licensed experts, such as geological or
completion topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure
upon its completion.
(calendar days)
â— Does not include time spent gathering information The warehouse:
â— Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or stationery.
though procedures that can be fully completed - Will have two stories, both above ground, with a total constructed area of
online are an exception to this rule approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
â— Procedure is considered completed once final meters (9 feet, 10 inches) high and will be located on a land plot of approximately
document is received 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
warehouse is valued at 50 times income per capita.
â— No prior contact with officials
- Will have complete architectural and technical plans prepared by a licensed
Cost required to complete each procedure (% of architect. If preparation of the plans requires such steps as obtaining further
income per capita) documentation or getting prior approvals from external agencies, these are counted
as procedures.
â— Official costs only, no bribes
- Will take 30 weeks to construct (excluding all delays due to administrative and
regulatory requirements).
Building quality control index (0-15)
â— Sum of the scores of six component indices: The water and sewerage connections:
â— Quality of building regulations (0-2) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
â— Quality control before construction (0-1) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
no sewerage infrastructure, a septic tank in the smallest size available will be
â— Quality control during construction (0-3)
installed or built.
â— Quality control after construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
â— Liability and insurance regimes (0-2) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
â— Professional certifications (0-4) 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 9Doing Business 2018 Taiwan, China
Dealing with Construction Permits - Taiwan, China
Standardized Company
Estimated value of warehouse TWD 37,638,586.00
City Covered Taipei
Indicator Taiwan, China East Asia & OECD high Overall Best
Pacific income Performer
Procedures (number) 10 15.2 12.5 7.00 (Denmark)
Time (days) 93 138.2 154.6 27.5 (Korea, Rep.)
Cost (% of warehouse value) 0.4 2.2 1.6 0.10 (5 Economies)
Building quality control index (0-15) 13.0 8.9 11.4 15.00 (3 Economies)
Figure – Dealing with Construction Permits in Taiwan, China and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
86.32: Taiwan, China (Rank: 4)
84.86: Hong Kong SAR, China (Rank: 5)
82.19: Malaysia (Rank: 11)
77.74: Korea, Rep. (Rank: 28)
73.36: Japan (Rank: 50)
69.60: Regional Average (East Asia & Pacific)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for
dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component
indicators.
Figure – Dealing with Construction Permits in Taiwan, China – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
0.25
90
80
Cost (% of income per capita)
0.2
70
60
Time (days)
0.15
50
40
0.1
30
20 0.05
10
0 0
1 *2 3 4 5 6 7 8 9 10
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 10Doing Business 2018 Taiwan, China
Figure – Dealing with Construction Permits in Taiwan, China and comparator economies – Measure of Quality
15
13.0 13.0
12.0
11.0
Index score
10 8.9
8.0
5
0
Taiwan, China Hong Kong SAR, China Japan Korea, Rep. Malaysia East Asia & Pacific
Details – Dealing with Construction Permits in Taiwan, China – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain information about infrastructure from the water company 14 days no charge
Agency : Taiwan Water Corporation at One-Stop Counter
BuildCo visits the One-Stop Counter to obtain information on the intended building site’s
water and electricity infrastructure.
2 Obtain information about electricity infrastructure from electricity provider 14 days no charge
Agency : Taiwan Power Company (Taipower) at One-Stop Counter
3 Request and obtain building permit from the City Government at the One- 21 days TWD 31,402
Stop Counter
Agency : City Government at the One-Stop Counter
With the One-Stop Counter introduced in March 2011, becoming fully operational in
early 2012, builders now can obtain several approvals in one place. BuildCo submits a
construction permit application at the One-Stop Counter, along with the drawings and
explanations as part of the “pre-construction application form."
In particular cases, if there is a need for an application to be processed jointly with
another unit, the applicant should fill out a Taipei City Government Building Permit
(Design Alteration) Joint Review Form, ticking the joint processing unit and joint review
item(s), and submit it once.
If an application is not within the scope of the One-Stop Counter’s jurisdiction, or is one
that cannot be processed due to special circumstances, the One-Stop Counter will not be
able to accept it, but will assist the applicant in going through the ordinary channels.
If an application is within the scope of the One-Stop Counter’s jurisdiction, the staff
member that receives it will verify that the correct documents have been submitted,
assign the application a case number, and submit a receipt stamp or fax a receipt stub
with the fees that need to be paid.
When the documents are complete, the One-Stop Counter will forward them to the
relevant offices (the Construction Management Office, Bureau of High Speed Rail,
Department of Rapid Transit Systems, Department of Public Works, Department of
Cultural Affairs, Department of Transportation, Department of Land, Department of
Urban Development, etc.) to conduct a joint review. When a joint review of an
application has been conducted by the One-Stop Counter and it has been found that the
application does not conform to requirements, the One-Stop Counter will notify the
applicant that he has one chance to make the necessary amendments.
Once all amendments have been made, a construction permit is issued, and fees for the
construction permit, specification of building setback line, wastewater discharge permit,
and land ownership certificate are paid.
It is possible to apply for a building permit online since April 1, 2015 and the website is
http://tccmoapply.dba.tcg.gov.tw:8080/tccmoapply/
Page 11Doing Business 2018 Taiwan, China
4 Report the start date and present construction plan to the City Government 1 day TWD 25,674
at the One-Stop Counter and pay air pollution protection fee before starting
construction
Agency : City Government at the One-Stop Counter
After BuildCo obtains the construction permit, he prepares the application for
commencement of construction, a construction plan, and other required documentation
and submits them to the One-Stop Counter.
BuildCo then pays the air pollution protection fee and obtains approval for the
commencement of work.
Under the provisions of Article 4 of the Regulations Governing Construction Project Air
Pollution Prevention Facilities, the case study warehouse would be classified as a Grade 2
construction.
5 Request occupancy permit, post-contruction approvals and registrations at 1 day TWD 75,277
the One-Stop Counter
Agency : City Government at the One-Stop Counter
Where construction is completed without involving damage to adjacent property,
BuildCo can take the original construction permit to the One-Stop Counter and make a
one-time submission of the Self Checklist for Post-Completion Application Documents
(OSC4) and apply for an occupancy permit.
The mode of submission is the same as the construction permit application. BuildCo must
place the relevant application letter, application form, drawings and explanations, and
other documentation required by law or by the regulations of the unit concerned into one
envelope for each separate application. BuildCo must also write the type of application
and the unit concerned on the envelope (e.g., “Application to the Fire Department for
post-completion inspection of fire-fighting equipment.”)
The One-Stop Counter will pass the application documents to the relevant units or review
and processing. As part of the review process, the relevant departments will conduct a
joint final inspection. If the building is found to be in compliance with applicable
regulations, the One-Stop Counter will approve the issuance of an occupancy permit and
BuildCo must pay the applicable fees. BuildCo may choose to pick up the occupancy
permit in person at the One-Stop Counter or have it mailed to him. The One-Stop Counter
will also notify Taipei Water Department to carry out the water connection procedures.
Moreover, once issuance of the occupancy permit is approved, the One-Stop Counter will
transmit the documentation to apply for registration of title to the local land
administration office.
For the registration of a new building, Point 3 of the Supplementary Regulations on
Computing and Collecting Land Registration Fees and Penalties stipulates that the
registration fee is computed according to the total cost of construction as recorded in the
occupancy permit. Article 84 of the Land Registration Regulations stipulates that the
general land registration procedure applies to the registration of a new building; hence the
applicable registration fee is 0.2% of the total cost of construction.
6 Receive final inspection 1 day no charge
Agency : Relevant Agencies at One-Stop Counter
7 Obtain occupancy permit, post-contruction approvals and registrations at 33 days no charge
the One-Stop Counter
Agency : City Government at One-Stop Counter
8 Apply for water supply from a local water company 1 day no charge
Agency : Taiwan Water Corporation
9 Receive inspection from water company 1 day no charge
Agency : Taiwan Water Corporation
10 Obtain connection to water 19 days TWD 25,000
Agency : Taiwan Water Corporation
The whole process (from application to connection) may take 14 -- 28 days.
Takes place simultaneously with previous procedure.
Page 12Doing Business 2018 Taiwan, China
Details – Dealing with Construction Permits in Taiwan, China – Measure of Quality
Answer Score
Building quality control index (0-15) 13.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge.
Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect.
Quality control during construction index (0-3) 2.0
What types of inspections (if any) are required by law to be carried out during construction? Inspections by in- 1.0
(0-2) house engineer.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0
with the approved plans and regulations? (0-2) inspection is
done by
government
agency; Yes, in-
house engineer
submits report for
final inspection.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 1.0
Which parties (if any) are held liable by law for structural flaws or problems in the building Professional in 1.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) charge of the
supervision;
Construction
company; Owner
or investor.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance .
Professional certifications index (0-4) 4.0
What are the qualification requirements for the professional responsible for verifying that the Minimum number 2.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) of years of
experience;
University degree
in architecture or
engineering;
Being a
registered
architect or
engineer;
Passing a
certification
exam.
Page 13Doing Business 2018 Taiwan, China
What are the qualification requirements for the professional who supervises the construction Minimum number 2.0
on the ground? (0-2) of years of
experience;
University degree
in engineering,
construction or
construction
management;
Being a
registered
architect or
engineer;
Passing a
certification
exam.
Page 14Doing Business 2018 Taiwan, China
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
â— Submitting all relevant documents and obtaining
The construction company (BuildCo):
all necessary clearances and permits
â— Completing all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the economy’s
receiving all necessary inspections largest business city. For 11 economies the data are also collected for the second
largest business city.
â— Obtaining external installation works and possibly
- Is 100% domestically and privately owned; has five owners, none of whom is a
purchasing material for these works
legal entity. Has a licensed architect and a licensed engineer, both registered with
â— Concluding any necessary supply contract and the local association of architects or engineers. BuildCo is not assumed to have any
obtaining final supply other employees who are technical or licensed experts, such as geological or
topographical experts.
Time required to complete each procedure
- Owns the land on which the warehouse will be built and will sell the warehouse
(calendar days)
upon its completion.
â— Is at least 1 calendar day
The warehouse:
â— Each procedure starts on a separate day
â— Does not include time spent gathering information - Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of
â— Reflects the time spent in practice, with little
approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
follow-up and no prior contact with officials
meters (9 feet, 10 inches) high and will be located on a land plot of approximately
Cost required to complete each procedure (% of 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
warehouse is valued at 50 times income per capita.
income per capita)
- Will have complete architectural and technical plans prepared by a licensed
â— Official costs only, no bribes architect. If preparation of the plans requires such steps as obtaining further
â— Value added tax excluded documentation or getting prior approvals from external agencies, these are counted
as procedures.
The reliability of supply and transparency of - Will take 30 weeks to construct (excluding all delays due to administrative and
tariffs index (0-8) regulatory requirements).
â— Duration and frequency of power outages (0–3)
The water and sewerage connections:
â— Tools to monitor power outages (0–1)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
â— Tools to restore power supply (0–1)
is no water delivery infrastructure in the economy, a borehole will be dug. If there is
â— Regulatory monitoring of utilities’ performance no sewerage infrastructure, a septic tank in the smallest size available will be
(0–1) installed or built.
â— Financial deterrents limiting outages (0–1) - Will have an average water use of 662 liters (175 gallons) a day and an average
wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
â— Transparency and accessibility of tariffs (0–1)
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
Price of electricity (cents per kilowatt-hour)* gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the
â— Price based on monthly bill for commercial
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
warehouse in case study
the sewerage connection.
*Note: Doing Business measures the price of
electricity, but it is not included in the distance to
frontier score nor the ranking on the ease of getting
electricity.
Page 15Doing Business 2018 Taiwan, China
Getting Electricity - Taiwan, China
Standardized Company
Price of electricity (US cents per kWh) 10.9
Name of utility Taiwan Power Company
City Covered Taipei
Indicator Taiwan, China East Asia & OECD high Overall Best
Pacific income Performer
Procedures (number) 3 4.5 4.7 2 (United Arab
Emirates)
Time (days) 22 71.6 79.1 10 (United Arab
Emirates)
Cost (% of income per capita) 38.9 712.0 63.0 0.00 (Japan)
Reliability of supply and transparency of tariff 8 3.7 7.4 8.00 (28 Economies)
index (0-8)
Figure – Getting Electricity in Taiwan, China and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
99.89: Korea, Rep. (Rank: 2)
99.45: Taiwan, China (Rank: 3)
99.02: Hong Kong SAR, China (Rank: 4)
94.33: Malaysia (Rank: 8)
89.88: Japan (Rank: 17)
72.23: Regional Average (East Asia & Pacific)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting
electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Page 16Doing Business 2018 Taiwan, China
Figure – Getting Electricity in Taiwan, China – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
45
20
40
Cost (% of income per capita)
35
15 30
Time (days)
25
10 20
15
5 10
5
0 0
1 2 3
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Figure – Getting Electricity in Taiwan, China and comparator economies – Measure of Quality
8 8 8 8 8
8
7
6
Index score
5
4 3.7
3
2
1
0
Taiwan, China Hong Kong SAR, China Japan Korea, Rep. Malaysia East Asia & Pacific
Page 17Doing Business 2018 Taiwan, China
Details – Getting Electricity in Taiwan, China – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit application for connection and await completion of design 4 calendar days TWD 293,202
Agency : Taiwan Power Company (TPC)
The customer fills out an application form and sends it to (or takes it to) TPC’s branch
and pays the fee for connection. The following documents are required: Application
form, an indoors wires diagram, and the usage license or certificate approved by
authorities of building. TPC will then design the external line.
Before the external connection works can start the utility has to finish the design for the
works. In this case, when the customer submits an application at a TPC branch, TPC will
estimate the customer's Contribution in Aid of Construction Costs. The customer can pay
the fee when they apply.
The Customer’s Contribution in Aid of Construction Costs includes fees for the power
line design, construction, meter installation and check of the internal wiring, and labor
costs.
2 Await completion of external works by TPC’s subcontractor 17 calendar days TWD 0
Agency : Taiwan Power Company (TPC)
The contractor hired by the utility will complete the external connection work. All
material is available in more than 50% of the cases. The customer doesn’t have to buy
any material for the external connection works.
The excavation permit is obtained by the utility. It is obtained from the agency of the
government that is in charge of the roads.
3 Await meter installation, internal wiring inspection and electricity flow from 1 calendar day TWD 0
TPC
Agency : Taiwan Power Company (TPC)
The electrician who did the internal wiring submits a signed notification to the utility
upon completion in which they guarantee it has been carried out according to the
regulations. Then TPC will inspect the internal wiring after the external connection works
are over.
According to Article 43 of "The Electricity Act", "the installation of user electricity
devices by electricity enterprises shall comply with relevant regulations provided by the
central competent authority and electricity supply may only be connected after said
devices have passed inspection. For electricity equipment already installed by the user,
inspection shall be carried out with the result thereof recorded at least once every three
years. In the event that non-conformity is found, a time period shall be specified for the
user to make rectification."
Taipower inspects the internal wiring and installs the meter after the external connection
works are over. If the internal wiring check is passed, the meter will be installed and the
electricity will start flowing.
Takes place simultaneously with previous procedure.
Page 18Doing Business 2018 Taiwan, China
Details – Getting Electricity in Taiwan, China – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 8
Total duration and frequency of outages per customer a year (0-3) 3
System average interruption duration index (SAIDI) 0.3
System average interruption frequency index (SAIFI) 0.2
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 1.0
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of Yes
supply?
Financial deterrents aimed at limiting outages (0-1) 1
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages Yes
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online http://www.taipower.c
om.tw/e_content/ind
ex.aspx
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 19Doing Business 2018 Taiwan, China
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in June 2017.See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
â— Preregistration procedures (for example,
The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
â— Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. For 11
business citya. economies the data are also collected for the second largest business city.
- Are 100% domestically and privately owned.
â— Postregistration procedures (for example, filling
- Have 50 employees each, all of whom are nationals.
title with municipality)
- Perform general commercial activities.
Time required to complete each procedure
The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
â— Does not include time spent gathering information
- Is fully owned by the seller.
â— Each procedure starts on a separate day - though - Has no mortgages attached and has been under the same ownership for the past
procedures that can be fully completed online are
10 years.
an exception to this rule
- Is registered in the land registry or cadastre, or both, and is free of title disputes.
â— Procedure is considered completed once final - Is located in a periurban commercial zone, and no rezoning is required.
document is received - Consists of land and a building. The land area is 557.4 square meters (6,000
â— No prior contact with officials square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
located on the land. The warehouse is 10 years old, is in good condition, has no
Cost required to complete each procedure (% of heating system and complies with all safety standards, building codes and legal
property value) requirements. The property, consisting of land and building, will be transferred in its
â— Official costs only (such as administrative fees, entirety.
duties and taxes). - Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of
â— Value Added Tax, Capital Gains Tax and illicit
any kind.
payments are excluded
- Will not be used for special purposes, and no special permits, such as for
residential use, industrial plants, waste storage or certain types of agricultural
Quality of land administration index (0-30)
activities, are required.
â— Reliability of infrastructure index (0-8) - Has no occupants, and no other party holds a legal interest in it.
â— Transparency of information index (0–6)
â— Geographic coverage index (0–8)
â— Land dispute resolution index (0–8)
â— Equal access to property rights index (-2–0)
Page 20Doing Business 2018 Taiwan, China
Registering Property - Taiwan, China
Standardized Company
Property value TWD 37,638,586.00
City Covered Taipei
Indicator Taiwan, China East Asia & OECD high Overall Best
Pacific income Performer
Procedures (number) 3 5.5 4.6 1.00 (4 Economies)
Time (days) 4 74.5 22.3 1.00 (3 Economies)
Cost (% of property value) 6.2 4.3 4.2 0.00 (5 Economies)
Quality of the land administration index (0-30) 28.5 15.8 22.7 29.00 (Singapore)
Figure – Registering Property in Taiwan, China and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
83.89: Taiwan, China (Rank: 18)
76.34: Korea, Rep. (Rank: 39)
76.06: Malaysia (Rank: 42)
73.92: Japan (Rank: 52)
73.54: Hong Kong SAR, China (Rank: 55)
57.21: Regional Average (East Asia & Pacific)
Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering
property. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Figure – Registering Property in Taiwan, China – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
4 7
3.5 6 Cost (% of income per capita)
3
5
Time (days)
2.5
4
2
3
1.5
2
1
0.5 1
0 0
1 2 3
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 21Doing Business 2018 Taiwan, China
Figure – Registering Property in Taiwan, China and comparator economies – Measure of Quality
30 28.5 27.5 27.5 27.5
24.5
25
Index score
20
15.8
15
10
5
0
Taiwan, China Hong Kong SAR, China Japan Korea, Rep. Malaysia East Asia & Pacific
Details – Registering Property in Taiwan, China – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Buyer researches the property rights and encumbrances registered against Less than one day TWD 10 for the
the property at the registry of titles (online procedure) search and TWD 20
Agency : Land Registry per sheet of e-
The buyer obtains copies of the land and building's registration from the electronic transcript
registration database. Each page costs TWD 20.
2 Buyer pays the Deed tax at the Municipality Less than one day 6% of standard
Agency : Municipality (online procedure) property value (Deed
The Deed tax is 6% of the standard property value, and buyer pays it at the Municipality. Tax) + 0.1% Stamp
Seller pays the Land value increase tax. Duty
As a result, Taiwan government (Real-estate Valuation Committee) issues so-called
"standard" valuation information of property every year for tax authorities' and tax
payers' reference. After years, such government announcement of valuation becomes the
reported tax base by taxpayers and acceptable by tax authorities. The real "contract price"
might be ignored when filing deed tax in practice now. The standard value is always
lower than market price.
As of January 30 2005, the Land value increase tax (capital gains tax) is levied according
to the following rates:
(1) Where the net increase of the value of any land is no more than 100 percent of the
original value of such land, the rate shall be 20 percent of the net increase.
(2) Where the net increase of the value of any land is no more than 200 percent of the
original value of such land, the rate shall be 30 percent of that part of the net increase
which exceeds the original value by more than 100 percent in addition to the rate
prescribed in the preceding section.
(3) Where the net increase of the value of any land is no more than 300 percent of the
original value of such land, the rate shall be 40 perсent of that part of the net increase
which exceeds the original value by more than 200 percent in addition to the rates
prescribed in the preceding section.
As of October 2009, the Ministry of Finance completed the development of the Local Tax
Online Filing Portal, provided for use by the public nationwide.
Taiwan government spent two years planning this system, which enables the public to
carry out the filing for these local taxes online at home, and speeds up the procedure for
property registration. (The Local Tax Online Filing Portal website can be visited at:
https://www.etax.nat.gov.tw/wSite/indexLocal.htm)
3 Registration of transfer of title at the Land Registry 3 days 0.1% of property
Agency : Land Registry value (registration
The transfer of title is registered at the Land Registry. The original ownership certificate fee) + TWD 80 for
must be returned and a new one is issued. new ownership
certificate
Takes place simultaneously with previous procedure.
Page 22Doing Business 2018 Taiwan, China
Details – Registering Property in Taiwan, China – Measure of Quality
Answer Score
Quality of the land administration index (0-30) 28.5
Reliability of infrastructure index (0-8) 8.0
What is the institution in charge of immovable property registration? Land Office
In what format are the majority of title or deed records kept in the largest business city—in a Computer/Fully 2.0
paper format or in a computerized format (scanned or fully digital)? digital
Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions Yes 1.0
and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Land Office
In what format are the majority of maps of land plots kept in the largest business city—in a Computer/Fully 2.0
paper format or in a computerized format (scanned or fully digital)? digital
Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0
cadastral information (geographic information system)?
Is the information recorded by the immovable property registration agency and the cadastral Single database 1.0
or mapping agency kept in a single database, in different but linked databases or in separate
databases?
Do the immovable property registration agency and cadastral or mapping agency use the Yes 1.0
same identification number for properties?
Transparency of information index (0–6) 4.5
Who is able to obtain information on land ownership at the agency in charge of immovable Anyone who 1.0
property registration in the largest business city? pays the official
fee
Is the list of documents that are required to complete any type of property transaction made Yes, online 0.5
publicly available–and if so, how?
Link for online access: 1.http://www.land
.moi.gov.tw/chht
ml/tabledown.asp
?cid=52&qcode=
2. http://www.e-
services.taipei.go
v.tw/hypage.exe?
HYPAGE=index_
01.htm&clsid0=1
&clsid1=24&clsid
2=39&cond=all&t
otal_srv=103#sh
owname_place 3.
http://www.land.g
ov.taipei/ct.asp?
xItem=59214040
&CtNode=84881
&mp=111001
Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5
immovable property registration in the largest business city made publicly available–and if
so, how?
Link for online access: 1.http://www.land
.gov.taipei/np.asp
?
ctNode=85161&
mp=111001
2.http://w2.land.t
aipei.gov.tw/calc/
exp/r_1.asp
Does the agency in charge of immovable property registration commit to delivering a legally Yes, online 0.5
binding document that proves property ownership within a specific time frame–and if so, how
does it communicate the service standard?
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