Empowering Entrepreneurs: Government Incentives for Business Innovation in Taiwan
From funding opportunities to incubation centers and accelerators, Taiwan has initiated a range of solutions to foster entrepreneurial activity and business growth. Start-ups can access funding through programs like the SME Innovation Development Project Loan and National Development Fund Startup Angel Project. Incubation centers like Taiwan Startup Stadium provide essential resources and mentorship, while accelerators such as Taiwan Accelerator Plus offer rapid scaling opportunities. Tax and financial incentives further encourage entrepreneurship and innovation. Join the vibrant entrepreneurial landscape in Taiwan and leverage government support to turn your business dreams into reality.
Grants for Small Business Innovation Research (SBIR)
This grant aims to stimulate research and development of innovative technology and services in Taiwan to support industries, boost the competitiveness of Taiwanese SMEs, and spur economic development.
Application Criteria:
Enterprises with completed company or business registration in accordance with the law and are either paid-in capital of NT$ 100 million or less or less than 200 regular employees.
Application Process:
Phase 1: Pilot Study/Preliminary Planning: NT$ 1 million (6 months)
Phase 2: R&D/Detailed Planning: NT$ 10 million (2 years)
Phase 2+: Value-added applications: NT$ 5 million (1 year)
Service Industry Innovation Research (SIIR)
This grant aims to encourage commercial service industries to propose innovative R&D plans with the theme “Smart applications, experience situation, and low carbon cycle.”
Application Criteria:
1. The business must be registered in Taiwan (excluding branch offices)
2. The business bank account must have a positive net balance, cannot be a dishonored account, nor have records of refund.
3. The business granted subsidies within three years shall not exceed 2 cases.
4. Upload Document
a. Qualification Documents: Credit Check Inquiry (issued by Taiwan Clearing House), Profit Enterprise Income Tax Settlement Declaration Form, Certificate of Tax Violations or Arrears, letter of intent or memorandum of cooperation, letter of consent for personal data collection, supporting documents (addresses, photo, etc.)
b. Planning Documents: R&D plan and Corporate one-page presentation
Application Process:
1. Register online and Verify using MOEACA ID before uploading documents
2. Upload the Qualification Documents and Planning Document
3. If you don’t have MOEACA ID, please contact the Certification Authority of MOEA
National Development Fund Entrepreneurial Angel Investment Program (EAIP)
With the main objective to support relatively high-risk startups (instead of having monetary profit as the sole consideration), this program aims to establish a “sound startup investment mechanism” to improve the angel investment environment in Taiwan. The program is free to apply, and no private operators are entrusted to handle fee briefings.
Application Criteria:
1. The program is open to angel investors and new start-ups, with priority given to those recommended by the angel investors from the following types of institutions and organizations:
a. Angel investment funds
b. Venture capitals
c. Angel investment organizations
d. Angel investment clubs
e. Accelerator or incubation centers
2. For New startups:
a. Established for less than 5 years
b. The paid-in capital or the cumulative actual fundraising in the past shall not exceed NT$100 million.
c. The above conditions are not limited to those approved by the Investment Evaluation Committee.
Application Process:
1. Prepares application documents within 2 weeks of submission:
a. Investment application form
b. Business plan
c. Corporate charter
d. Financial report, profit enterprise income tax settlement declaration form, or consolidated financial statements from the last three years
e. Certification documents of the person in charge
f. Business license/ Company establishment registration documents
g. Business registration, certificate of incorporation, or certificate of incumbency
h. Detail application forms for download
2. Application reviewed by institution
3. Post-investment Cooperation
a. Financial information and the company’s operating overview on a quarterly basis
b. Cooperate with National Development Fund agency irregular on-site visit
c. Hold regular major company meetings in accordance with laws and regulations
d. Agency shall be notified in case of special situation or sudden major event that may damage the rights and interests of investors
Taipei Municipal Self-Government Ordinance for Industrial Development (TMOID)
To stimulate technological development, the Taipei City Government became the first city government in Taiwan to provide subsidies for research and development for up to NT$5 million.
Application Criteria:
1. A small or medium enterprise as defined by the standards for identifying small and medium enterprises
2. Either from the agricultural, industrial, commerce, or service sectors
3. The company is registered and located in Taipei City
4. New establishment within a year
Application Process:
1. Complete application form:
a. Business plan for new investments
b. Business Issuance Registration Certificate or Capital Increase Certificate
c. Uniform invoice or other documentary proof of new equipment purchase or technology transfer
d. The financial statements for the three most recent years were certified by a certified public accountant
e. Business profit tax return and Annual Income Tax Return Forms for the most recent year
f. Documents demonstrating that the applicant does not have overdue taxes and fines issued by the National Taxation Bureau of the Republic of China (Taiwan)
g. Documentary proof of authenticity of items submitted hereunder for application of subsidies
h. Other Documents required by DOED
2. Other documents required before DOED
a. Complete the application form
b. Research and development plan
c. Business Issuance Registration Certificate or other Registration Certificate
d. Business profit tax return and Annual Income Tax Return Forms for the most recent year. (For companies established less than one year, those documents are not required.)
e. Documents demonstrating the applicant does not have overdue taxes and fines.
f. Documentary proof of provision of Labor Insurance Coverage for applicant employees
g. Other Documents required by DOED.
Other Types of Subsidies and Incentives
1. R&D Subsidies
2. Incentives on capital increase for expansion of SMEs are available if
a. Investment of NT$1 million or above on facilities or technologies for innovation or improvement of management or services
b. Investment projects have character or potential for development
3. Incentives when the actual capital is NT$80 million or above for capital increase or spinoff if investment is made in the following industries: Recreation and Tourism, Biotechnology, Information Services, Cultural Creative, Health Care, Sports and Leisure, Convention and Exhibition, Renewable Energy, other industries promoted and supported by the City Government (Documents Requirement)
SME Innovation Development Project Loan (SMEIDPL)
Initiated by the Small and Medium Enterprise Administration of the Ministry of Economic Affairs, this loan provides up to NT$ 80 million for capital expenses and up to NT$ 20 million for the revolving fund.
Application Criteria:
1. Enterprises that meet the identification standards of small and medium-sized enterprises and one of the following conditions can apply for the loan:
a. Innovative products developed by themselves, including technology, manufacturing process, and services.
b. Has won relevant government innovation awards
c. Received government research and development subsidies
d. Has cooperated with foreign enterprises, government agencies, or academic research institutions
e. Obtained by the government to strengthen the implementation plan of investment in SMEs for strategic manufacturing industries and cultural & creative industries
f. Scientific industries approved to be established in scientific industrial park
g. Applied for admission to the Growth Enterprise Market on Taipei Exchange and approved for counseling
h. In line with the promotion of financial support for creative industries and government innovation industries
i. The compound average annual growth rate of the number of employees or turnover in the last three years exceeds 20%
j. A social innovation enterprise registered with the office or a B-type enterprise certified by the international non-profit organization, B Lab
k. Enterprises that have introduced digital technology through government guidance issued awards subsidies, or have been cultivated and recommended by international innovation
Application Process:
1. Submits the relevant documents for a loan application to the financial institution
2. Wait for approval from financial institutions
Small Enterprise Loan (SEL)
This loan is initiated by the Small and Medium Enterprise Administration of the Ministry of Economic Affairs. The goal is to promote small businesses' development, help them obtain the necessary funds for their operation, continue economic vitality, and create more employment opportunities.
Application Criteria:
1. Registered business or corporation
2. Business tax registration that employs fewer than 10 people
Application Process:
1. Submit the application within one year from the date of establishment
2. The financial institution will review the loan promptly through simple credit and granting procedures
Young Entrepreneur Financing Loan (YRFL)
This loan is dedicated to young entrepreneurs between 20 and 45. It allows them to apply for loans at a preferential interest rate to get their new businesses off the ground. Once granted, applicants can also benefit from direct credit guarantees to the 80-90% range by the SME Credit Guarantee Fund.
Application Criteria:
1. Businesses that have registered as a company, business, or limited partnership for less than five years
2. Those who meet the following requirements may apply for a loan:
a. The person in charge must be between the ages of 18 and 45 years.
b. If the person in charge is a resident of R.O.C., they should have received government authorization within three years to offer business startup counseling services at a government-recognized institution.
c. If the responsible person is a resident of R.O.C., they should have received at least 20 hours of entrepreneurship counseling-related courses from a government-recognized institution within the past three years or obtained a certificate of two credits
d. If not a resident, they should have an entrepreneur visa, employment gold card, or valid residence permit issued
e. The capital contribution of the responsible person should be at least 20% of the actual capital of the enterprise
Application Process:
1. Filled in the downloaded application forms: loan plan, loan application form, closing statement, and application for interest subsidy
Writing by: Vuttisak Busabok, Sarah Pan, Shirley Hsieh, Sebastian Chen