In accordance with the relevant requirements and provisions of the "Implementation Opinions on Encouraging Multinational Companies to Establish Regional Headquarters in Huangpu District", the following detailed rules are hereby formulated for the specific implementation of the "Opinions":
1. Objects of support
Regional headquarters of multinational corporations (hereinafter referred to as "regional headquarters"), headquarters of multinational corporations (hereinafter referred to as "headquarters") and business headquarters of multinational corporations (hereinafter referred to as "business headquarters") established in the district and recognized by the Shanghai Municipal Commission of Commerce.
2. Supporting standards
(1) Start-up subsidy
For the regional headquarters or business department headquarters that are recognized as eligible in Shanghai, they can apply for municipal start-up subsidies in accordance with the provisions of the Administrative Measures for the Development of Regional Headquarters of Multinational Companies in Shanghai (Hu Shang Gui [2024] No. 2).
(ii) Rental subsidy
Regional Headquarters or Business Division Headquarters: For regional headquarters or business department headquarters that are recognized in Shanghai with a paid-in registered capital of not less than US$2 million and pay social security for 10 or more employees in Shanghai, and lease office space for their own use (excluding ancillary facilities and supporting buildings), the office area shall not exceed 1,000 square meters and the standard of no more than RMB 8 per square meter per day, at the rate of 30% of the rent A three-year subsidy will be granted, and a one-time financial subsidy will be given to those who purchase and build office buildings for self-use (excluding ancillary facilities and ancillary buildings) according to the same standard of rental subsidy for three years.
Regional headquarters or business department headquarters that meet the requirements on rental subsidies in the Administrative Measures for the Development of Regional Headquarters of Multinational Companies in Shanghai (Hu Shang Gui [2024] No. 2) and these rules will be given priority to apply for municipal rental subsidies.
Headquarters-type institutions: For headquarters-type institutions recognized in Shanghai with a paid-in registered capital of not less than US$1 million (for headquarters institutions established in the form of branches, with operating capital of not less than US$1 million) and for 10 or more employees to pay social security in Shanghai, they will be given a three-year subsidy of 30% of the rent at a rate of no more than 1,000 square meters of office area and no more than 5 yuan per square meter per day, and purchase and build office space for their own use (excluding ancillary facilities and ancillary housing), a one-time financial subsidy will be given according to the total amount of three years of the same standard as the rental subsidy.
Enterprises shall submit an application for rental subsidy within three years of being recognized as a regional headquarters, business unit headquarters or headquarters-type organization, and shall not rent or sublease office space for self-use during the period of enjoying the subsidy, and shall not change the use of office space. In case of violation of the above provisions, the financial support already received shall be refunded.
(3) High-level rewards
For the regional headquarters or business headquarters of multinational companies in Asia, Asia Pacific or larger regions recognized in Shanghai, they can apply for municipal high-level awards in accordance with the provisions of the Measures for the Management of Development Funds for Regional Headquarters of Multinational Companies in Shanghai (Hu Shang Gui [2024] No. 2).
(4) Business incentives
Regional Headquarters and Business Division Headquarters: For regional headquarters or business department headquarters identified in Shanghai and eligible in Shanghai, municipal business incentives will be given in accordance with the provisions of the Measures for the Management of Development Funds for Regional Headquarters of Multinational Companies in Shanghai (Hu Shang Gui [2024] No. 2).
Regional headquarters with paid-in registered capital of not less than US$2 million and an annual turnover of RMB 1.5 billion or business headquarters or business department headquarters with an annual turnover of RMB 2 billion or more that have been recognized in Shanghai with a paid-in registered capital of not less than US$2 million and have enjoyed the operating incentives under this standard will be rewarded again with an annual turnover of RMB 5 billion. Among them, a one-time reward of RMB 3 million will be given for the part of the annual turnover of RMB 5 billion but less than RMB 8 billion, a one-time reward of RMB 2 million will be given for the part of the annual turnover of RMB 8 billion but less than RMB 10 billion, and a one-time reward of RMB 1 million will be given for the part of the annual turnover of RMB 10 billion or more.
The reward will be distributed in three years at a rate of 40%, 30% and 30%. Enterprises can only submit applications in the following year after meeting the operating incentive criteria and having enjoyed the annual turnover of RMB 15 or RMB 2 billion.
Headquarters-type institutions: Headquarters-type institutions recognized in Shanghai with a paid-in registered capital of not less than US$1 million (for headquarters-type institutions established in the form of branches, the allocated operating capital is not less than US$1 million), and the annual turnover reaches more than RMB 500 million from the year of recognition, rewards will be given. Among them, a one-off reward of RMB 2 million will be given to the part of the annual turnover of 500 million yuan but less than 1 billion yuan, a one-time reward of 1.2 million yuan will be given to the part of the annual turnover of 1 billion yuan but less than 1.5 billion yuan, and a one-time reward of 800,000 yuan will be given for the part of the annual turnover of 1.5 billion yuan or more. The reward will be distributed in three years at a rate of 40%, 30% and 30%. Enterprises can only submit applications in the following year when they meet the business incentive criteria.
Headquarters-type institutions with an annual turnover of more than RMB 1.5 billion and have enjoyed the operating incentives under the standard will be rewarded again if the annual turnover reaches RMB 5 billion. Among them, a one-time reward of RMB 3 million will be given for an annual turnover of RMB 5 billion but less than RMB 8 billion, a one-time reward of RMB 2 million will be given for an annual turnover of RMB 8 billion but less than RMB 10 billion, and a one-time reward of RMB 1 million will be given for an annual turnover of RMB 10 billion or more. The reward will be distributed in three years at a rate of 40%, 30% and 30%. Enterprises are required to submit an application in the following year after meeting the operating incentive criteria and having enjoyed the annual turnover of more than RMB 1.5 billion.
(5) Capital increase incentives
Regional headquarters and business department headquarters invest in foreign-funded projects in line with Shanghai's industrial development orientation (except real estate, financial and quasi-financial projects) in the form of capital increase. If the annual new paid-in foreign capital is not less than 10 million US dollars, a one-time capital increase reward of 500,000 yuan can be obtained. The same replenishment can only be enjoyed once. The annual new paid-in foreign capital is not less than 20 million US dollars, and a one-time capital increase reward of 1 million yuan can be obtained. The annual new paid-in foreign capital is not less than 30 million US dollars, and the applicant can apply for the municipal capital increase incentive in accordance with the provisions of the Measures for the Management of Development Funds for Regional Headquarters of Multinational Corporations in Shanghai (Hu Shang Gui [2024] No. 2).
During the implementation period of these implementation rules, only one capital increase incentive can be enjoyed. The amount of capital increase corresponding to the capital increase incentive shall be calculated based on the amount included in the actual foreign investment statistics of the Ministry of Commerce in a calendar year. The applicant must promise in writing that it will not reduce its capital, withdraw its capital, or transfer its domestic capital within 3 years.
Enterprises need to submit an application in the next year after the capital increase amount is in place, and they are not allowed to apply for capital increase incentives and municipal start-up subsidies at the same time in the same year.
3. Application conditions
The declaring enterprise should meet the following conditions:
(1) Established in accordance with the law in the district, and has been in normal and continuous operation for more than one year;
(2) Have good credit in funds and tax payments, have a sound financial management system, have not been entered into the list of targets for joint punishment for untrustworthiness by relevant national, provincial, or municipal departments, and have not recorded information on serious untrustworthiness within 3 years on the Shanghai Municipal Public Credit Information service platform;
(3) If the reporting unit has been punished for a major production safety accident within two years before the declaration, it shall not declare.
(4) Submit information reports on foreign-invested enterprises in accordance with regulations;
(5) Shall not repeatedly declare financial assistance for the same matter;
(6) Responsible for the authenticity, accuracy and completeness of the application materials.
Fourth, the application and review process
(1) The District Commission of Commerce issued an annual notice on the declaration of headquarters funds to clarify the declaration work
request
(2) Enterprises that meet the relevant conditions may submit an application to the Huangpu District Commission of Commerce in accordance with the requirements of the declaration notice.
(3) The District Commission of Commerce, together with the District Finance Bureau, shall jointly review the application materials of the applicant, and put forward the final evaluation opinions in combination with the third-party evaluation agency.
( 4 ) The District Commission of Commerce shall notify the District Finance Bureau of the results of the final examination opinions.
5. Transitional management
The projects that have been reviewed and approved before the implementation of these measures and are still in the fund allocation period shall continue to be implemented in accordance with the original measures until the full allocation of funds is completed.
6. Supervision and management
The district commerce committee and the district finance bureau shall, in accordance with the relevant regulations, supervise and inspect the use of the development funds of the regional headquarters of multinational corporations encouraged by the district. The District Commission of Commerce is responsible for the interpretation of issues related to these implementation rules, consultation on matters and acceptance of application materials.
VII. Supplementary Provisions
(1) The "Detailed Rules" shall be interpreted by the District Commission of Commerce and the District Finance Bureau.
(2) These Detailed Rules shall come into force on May 10, 2024 and shall be valid until May 9, 2029. The original "Implementation Rules for Encouraging Multinational Companies to Establish Regional Headquarters in Huangpu District" (Huang Shang Wei [20 20] No. 3) shall be repealed at the same time.
Source: Shanghai Huangpu
Shanghai Industrial Policy Service Center
Policy Services Department: Director Fang
Telephone-WeChat: 15618903837
*The policy content published in this article is compiled and interpreted by the Shanghai Industrial Policy Service Center, if there is any error, please contact us.
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Investment attraction in the park: Shanghai municipal-level park, science and technology enterprises will be rewarded when they move in, tax rebates for software enterprises will be implemented, high tax rebates will be signed, talents will be arranged to settle down, and land and factories will be rent-free. Encourage talents to start a business, register a company with 0 yuan, provide an address free of charge, and counsel to apply for entrepreneurial policy subsidy funds. Implementation Rules for the Development Fund of Regional Headquarters of Multinational Companies in Huangpu District 2024-2029 - Shanghai Science and Technology Innovation Policy Service