The government’s announcement last week of plans to establish an “entrepreneur visa scheme” is aimed at attracting foreign businesses to Taiwan. It also involves changes in current immigration rules for international talent, including lower capital investment requirements.
Singapore, South Korea, the US, Canada, the UK and the Netherlands have adopted similar schemes to encourage global talent to start businesses in their nations. Albeit a little late, Taiwan is moving in the right direction in creating a healthy start-up environment and developing an entrepreneur-friendly economy.
Based on the National Development Council’s proposals, the government plans to make it easier for foreign entrepreneurs with domestic or foreign venture capital investments of NT$2 million (US$63,600) or more to be granted a one-year resident visa.
Those who have won international design competitions, hold patents overseas, participated in events at one of the nation’s entrepreneurial parks or started a business with an investment of at least NT$1 million would also be eligible for a one-year resident visa.
On proof of solid investment performance, the visa would be extended to two years and potentially lead to permanent residency after living in Taiwan for five years. The new scheme is expected to take effect next quarter at the earliest, the council said.
Clearly, Taiwan is vying for foreign talent in the face of the nation’s drastic demographic changes in recent years. However, many government regulations remain unfavorable for foreigners. For example, current laws require foreign students to obtain internships or to work with local companies. Similarly, domestic firms wanting to recruit foreign employees need to cut through several levels of red tape. As for foreigners’ applications as investment immigrants, they must first invest more than NT$6 million in a new business in Taiwan or existing local firms, and have investments approved by the authorities.
The government said it hopes to issue up to 2,000 entrepreneur visas within a year, mainly targeting entrepreneurs in Silicon Valley and Southeast Asian nations. Those from Hong Kong and Macau will be eligible to apply for entrepreneur visas, but Chinese, in the preliminary stage, will not, the council said.
The restriction on Chinese entrepreneurs coincides with concerns over increased Chinese influence in recent years. Last week, the Investment Commission warned over Chinese investors’ control of their venture capital businesses in Taiwan after Chinese e-commerce giant Alibaba Group Holding Ltd pledged to launch a NT$10 billion funding scheme for Taiwanese start-ups to build up their businesses through its online shopping platform.
Efforts in investment relaxation and immigration reform to make it easier for innovative and entrepreneurial-minded foreigners to stay in Taiwan generally enjoy broad support. However, quality rather than quantity is crucial to the scheme, and diversity of talent is the key for the economic landscape.
The planned visa scheme’s application thresholds require proof of personal wealth or investment in Taiwan as well as extraordinary ability — demonstrated by international acclaim and a patent portfolio — but that does not guarantee it will attract the world’s leading entrepreneurs. Therefore, even though the new visa scheme is expected to help attract international talent and entrepreneurial immigrants, the government needs to conduct further reviews and consult various experts after its implementation, making sure it attracts the right talent. On the other hand, the government must be vigilant about potential scams involving bogus applications and criminal activities, staying tough on those who break the law.
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