Foreign Enterprises' Risks in Hiring Employees When Subsidiaries or Branches Are Not Set Up in Taiwan

When foreign enterprises seek to expand their business, the organizational structure they choose to operate in a specific market plays an important part in their business judgment. Although setting up a local subsidiary, branch, or office, is feasible, foreign enterprises' unfamiliarity with local market's labor law, labor conditions, employee benefits, tax law, and corporate governance norms, usually results in high compliance costs for setting up a legal entity in the target market.