| Notice regarding the opinions of implementation of “Shanghai Municipality, Encouraging the Establishment of Regional Headquarters by Foreign Multinational Corporations Provisions”
In order to better implement “Shanghai Municipality, Encouraging the Establishment of Regional Headquarters by Foreign Multinational Corporations Provisions”(Issued by the Shanghai Municipal People's Government on， and effective as of，7th July 2008) , the opinions of implementation is formulated as follows:
1、subsidies and rewards
(1) The standard of subsidies and rewards:
(a) Subsidy of initial expenditure. A subsidy of initial expenditure of 5 millions RMB shall be given to the regional headquarters with the form of Investment Company which newly was registered in or moved into Shanghai. The subsidy of initial expenditure shall be given according to the proportion of 40%, 30% and 30% respectively within three consecutive years.
(b) Subsidy of renting offices. In the event that the regional headquarters which newly registered in or moved into Shanghai rent the office for their own use, the subsidy of renting offices shall be given for a consecutive of three years according to 30% of the rent standard of 8 RMB per day per square meter with 1000 square meters of office space.
During the period of enjoying the subsidy of the regional headquarters, they can’t let out or sublet out the offices or can’t change the purpose of the office the obtained subsidies shall be refunded in the event that they let out or sublet out the offices or change the purpose of the office.
(c) The rewards for regional headquarters. A one-off 10 million reward shall be given to the regional headquarters of Investment Company which are recognized as the regional headquarters of the state-level multinational corporation and the annual turnover of which exceeds one billion for the first time. for the first time as from the year in which the regional headquarters are recognized. 5 million reward, according to the proportion of 40%, 30% and 30% respectively within three consecutive years, shall be given to the regional headquarters of investment company, the annual turnover of which exceeds 0.5 billion for the first time as from the year in which the regional headquarters are recognized
(d) The rewards for the higher management of the regional headquarters of Multinational Corporation.
The policies regarding to the rewards shall be formulated by the human resources and social security bureau together with the relevant governmental departments when they formulate the rewards polices for the talents.
(2) Establishing “Shanghai Municipality, Encouraging the Development of Special Fund of Regional Headquarters by Foreign Multinational Corporations” and finance this effort by splitting the cost among municipal revenues and county revenues. “Administration of Shanghai Municipality, Encouraging the Development of Special Fund of Regional Headquarters by Foreign Multinational Corporations Procedures” shall be separately formulated by Bureau of Finance of Shanghai Municipality and Shanghai Economic Commission.
2. Fund Management
The investment companies are encouraged to establish financial companies to provide the central fund management services for the internal invested companies in accordance with the “Administration of the Finance Companies of Enterprises Groups Procedures”.
Regional headquarters may establish centralized internal fund management systems to centrally manage their own funds. The commercial banks in shanghai are encouraged to offer financial services(settlement, exchange etc.) in accordance with the supervision from People's Bank of China and China Banking Regulatory Commission. Regional headquarters, controlled company and commercial banks can sign the tripartite agreement to foot up an account through that bank and its branches. Commercial banks, in accordance with Interim Rules on the Intermediate Services of Commercial Banks, should seek after intermediate services which suit for fund management of regional headquarters, strengthen management and control of intermediate services and establishing the information management system which suit for monitoring and reporting intermediate services, to make an accurate reflect the development and the risk on time. If foreign exchange capital operations are involved, such operations shall be carried out in accordance with relevant exchange control provisions. Regional Headquarters that meet the requirements may participate in the businesses of the central management of the foreign exchange capital of the multinational enterprise, external loan and other trial businesses.
3. Personnel movement
(1) Simplification of exit and entry procedures
(a) Temporary entry. Foreign nationals in the regional headquarters of multinational companies set up in Shanghai, who need to enter temporarily many times, may apply for multiple entry visiting visas in a year. Senior foreign managerial and hi-tech personnel may apply for multiple visiting entry visas for 2-5 years, the duration of each stay not exceeding a year.
(b) Long-term residence.
(i) Legal representatives, general managers, deputy general managers and financial controllers of regional headquarters in Shanghai of transnational companies may apply for a residence permit for foreign nationals with a validity of 5 years. Department managers of regional headquarters in Shanghai of transnational companies may apply for a residence permit for foreigners with a validity of 4 years. Other staff of regional headquarters in Shanghai of transnational companies may apply for a residence permit for foreigners with a validity of 3 years.
Legal representatives, general managers, deputy general managers and financial controllers of subsidiary companies of regional headquarters (the registered capital can not be less than US$ 30 million) may apply for a residence permit for foreign nationals with a validity of 5 years. Department managers of regional headquarters in Shanghai of transnational companies may apply for a residence permit for foreigners with a validity of 4 years. Other staff of regional headquarters in Shanghai of transnational companies may apply for a residence permit for foreigners with a validity of 3 years.
(ii) The spouses and children under the full age of 18 of the above foreign nationals may apply for multiple working entry visas for the same period of the residence permits for foreigners.
(c) Permanent Residence in China. The higher management such as legal representative of the Regional Headquarter may be given priority to be recommended to apply for the “permanent residence permit” in accordance with the “Measures for the Administration of Examination and Approval of Foreigners' Permanent Residence in China”.
(d) Coming to Shanghai under urgent circumstances. When foreign nationals invited by regional headquarters for a temporary visit to Shanghai are not able to apply for entry visas in our embassy or consulate abroad for reasons of unexpected matters, they may apply for port visas at the port visa department of the Exit-Entry Administrative Department of Shanghai Bureau of Public Security.
(e) Going to Hong Kong and Macao. Chinese employees in regional headquarters going to Hong Kong and Macao for business needs may apply for “Pass for Visits to Hong Kong and Macao”.
(f) Going to Taiwan. Chinese employees in regional headquarters going to Taiwan for business needs when submitting traveling documents for visiting Taiwan and approval letters from Office of Taiwan Affairs of the State Council may apply and obtain in priority the “Pass for Visiting Taiwan for residents on the Mainland”.
(g) Going abroad. Employees of Shanghai residents in regional headquarters going abroad for business needs may apply for passports to the Exit-Entry Department of Shanghai Bureau of Public Security with their identification cards and household register
(2) Simplification of Employment Permit Procedures
Foreigners (coming to china with L-visa, F-visa or X-visa) of Regional Headquarter who need to work in Shanghai may apply to the labor security departments of Shanghai for the “Employment Permit Certificate “and “Employment Certificate”.
(3) Talents Introduction Facilities
Labor security departments and police departments shall give the excellent internal talents who are necessarily introduced by regional headquarter priority to apply for the residence permit.
The excellent internal talents who are introduced by regional headquarters and its research centers (with the status of an independent legal entity) apply for shanghai household register shall be handled with reference to policies for high technology enterprises.
4. Clearances Facilities
The customs and Entry-Exit Inspection and Quarantine bureau shall facility the clearance for the regional headquarters and its research centers (with the status of an independent legal entity) which meet the requirements.
Encouraging the establishment of sub-distribution centers to integrate the companies' inner logistics, seeking after innovation of the regulation modes constantly, to adapt to the development of the regional headquarters by foreign multinational Corporations.
Shanghai Economic Commission
Bureau of Finance of Shanghai Municipality
Shanghai Municipal Human Resources and Social Security Bureau
Exit-Entry Administration Bureau of Shanghai Public Security Bureau Shanghai Branch of the People's Bank of ChinaShanghai Branch of the State Administration of Foreign Exchange Shanghai Custom District
Shanghai Entry-Exit Inspection and Quarantine Bureau
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