Notice of the Issuance on the Supportive Opinions on Special Support Funds to Promote the Development of Headquarters Economy in Shanghai Hongqiao Central Business District (Core Area)

H.H.S.G. [2012] No.99

To all relevant units:

According to the relevant requirements of the measures on Management of Special Development Funds in Shanghai Hongqiao Central Business District (H. C. Y. [2012] No.26) and the Detailed Rules for the Implementation of the Use Management of Special Development Funds in Shanghai Hongqiao Central Business District (H. H. S. G. [2012] No. 053), our committee has formulated the Supportive Opinions on Special Support Funds to Promote the Development of Headquarters Economy in Shanghai Hongqiao Central Business District (core area) and now prints and distributes it to you.

Shanghai Hongqiao Central Business District Administration Committee

October 25, 2012

Supportive Opinions on Special Support Funds to Promote the Development of Headquarters Economy in Shanghai Hongqiao Central Business District (core area)

ARTICLE 1 / Purposes and Basis

In order to encourage domestic and foreign large enterprises [Group] setting up headquarters or regional headquarters in Hongqiao Central Business district (core area) and to accelerate the headquarters economy gathering in the business district, these supportive opinions are put forward according to the Measures on Management of Special Development Funds in Shanghai Hongqiao Central Business District and the Opinions on Implementation of Provisions on Shanghai Encouraging Multinational Corporations to Set Up Regional Headquarters (hereinafter referred to as the “opinions for implementation”).

ARTICLE 2 / Source of Funds

The special funds of headquarters economy is an integral part of the special development funds of Hongqiao Central Business District and is under the unified management of special account of Hongqiao Central Business District. A certain amount of money will be arranged each year in the business district to support the development of headquarters economy.

ARTICLE3 /Requirements for Application

1. The [regional] headquarters of multinational corporations recognized by the State or Shanghai municipal competent departments.

2. The [regional] headquarters and functional headquarters of listed companies and domestic large enterprises meeting the following conditions simultaneously:

[1] With an independent legal personality and national or regional sales, settlement, investment operations and R & D functions;

[2] Investing or authorizing at least three management companies in the management area;

[3] With the registered capital of more than RMB 100 million yuan and promising the annual turnover of more than RMB 500 million yuan in two consecutive years. But as for the headquarters and functional headquarters established in Hongqiao Central Business District [core area] by large companies in the Yangtze River Delta region, the registered capital is decreased to RMB 50 million yuan and the annual turnover is promised of more than RMB 350 million yuan in two consecutive years.

ARTICLE 4 / Supporting Standards

1. For the [regional] headquarters of multinational corporations newly settled and registered in Hongqiao Central Business District (core area):

[1] Subsidies for start-up: As for the regional headquarters established in the form of investment companies, with the number of employees more than 10, based on the subsidy for start-up of RMB 5 million yuan specified in the Opinions for Implementation, another ratio of 1: 0.5 will be given as the subsidy for start-up. As for the regional headquarters established in the form of management companies, with the number of employees more than 10, RMB 3 million yuan will be given for start-up. The subsidy for start-up will be granted as the proportion of 40 %, 30 % and 30% in three years since the next year of registering or settling in Hongqiao Central Business District (core area).

[2] subsidies for constructing, purchasing [renting] premises: As for the [regional] headquarters of multinational corporations with number of employees of more than 10 constructing or purchasing self-use office premises in Hongqiao Central Business District (core area), according to 10% of the total construction or purchase price, a maximum of no more than RMB 6 million yuan will be given as the one-time subsidy funding. As for the [regional] headquarters of multinational corporations with number of employees of more than 10 leasing self-use office premises in Hongqiao Central Business District (core area), according to the rent subsidy standards specified in the Opinions for Implementation, based on the standards of RMB 8 yuan per square meter per day and 30% of the rent of the office premises having floor area of no more than 1000 square meters, another ratio of 1: 0.5 will be given as the rent subsidy for three years.

During the period of enjoying the subsidies, the [regional] headquarters of multinational corporations may not rent or sublease the self-use office premises and may not change the purpose of office premises. As for those violating the abovementioned provisions, the received subsidies shall be returned.

[3] Rewards for operation: as for the municipal [regional] headquarters of national-level multinational corporations identified after July 7, 2008, the investment companies with the annual turnover of more than RMB 1 billion yuan for the first time since the identification year will be given RMB 10 million yuan as the one-time award which is specified in the Opinions for Implementation. Moreover, another ratio of 1: 0.5 will be given as the rewards for operation.

As for the municipal regional headquarters of multinational management corporations identified after July 7, 2008, with the annual turnover of more than RMB 500 million yuan for the first time since the identification year, RMB 5 million yuan will be given as the one-time award which is specified in the Opinions for Implementation. Moreover, another ratio of 1: 0.5 will be given as the rewards for operation.

As for the municipal regional headquarters of investment companies identified after January 1, 2012, with the annual turnover of more than RMB 1 billion yuan for the first time since the identification year, RMB 5 million yuan will be given as the one-time award which is specified in the Opinions for Implementation. Moreover, another ratio of 1: 0.5 will be given as the rewards for operation.

The rewards will be granted as the proportion of 40%, 30% and 30% in three years.

[4] Subsidies for promoting the level: As for the multinational corporations’ headquarters in Asia, Asia Pacific or larger areas which are newly established in Hongqiao Central Business District (core area), with the number of employees less than 50, and the legal representative appointed by the parent company and key senior management associated with headquarters functions permanently working in Shanghai, RMB 8 million yuan will be given as the subsidy for start-up which is specified in the Opinions for Implementation. Moreover, another ratio of 1: 0.5 will be given as the subsidy for start-up. The subsidy will be granted as the proportion of 40%, 30% and 30% in three years. 

As for the regional headquarters of the established multinational corporations being upgraded as the headquarters in Asia, Asia Pacific or larger areas and being moved into Hongqiao Central Business District (core area), with the number of employees less than 50, and the legal representative appointed by the parent company and key senior management associated with headquarters functions permanently working in Shanghai, RMB 3 million yuan will be given as the one-time subsidies which is specified in the Opinions for Implementation. Moreover, another ratio of 1: 0.5 will be given as the subsidy. 

[5] Subsidies to the regional headquarters of investment companies for integrating equity: As for the regional headquarters of investment companies which are moved into Hongqiao Central Business District (core area) and are especially introduced in the city, for the costs and expenses arising from the integration of the internal equity, based on the amount of subsidy audited and determined by the Municipal Commission of Commerce, the Municipal Finance Bureau and relevant departments, another ratio of 1: 0.5 will be given as the subsidy.

2. For the [regional] headquarters and functional headquarters of listed companies and large domestic enterprises newly settled and registered in Hongqiao Central Business District (core area):

[1] Subsidies for start-up: As for the headquarters and functional headquarters of listed companies and large domestic enterprises, RMB 3 million yuan will be given as the subsidy for start-up which will be granted as the proportion of 40%, 30% and 30% in three years since the registration or settling year.

[2] Subsidies for constructing, purchasing [renting] premises: As for the headquarters and functional headquarters of listed companies and large domestic enterprises constructing or purchasing self-use office premises in Hongqiao Central Business District (core area), according to 10% of the total construction or purchase price, a maximum of no more than RMB 6 million yuan will be given as the one-time subsidy funding. As for those leasing self-use office premises in Hongqiao Central Business District (core area), according to the standards of RMB 7 yuan per square meter per day and 30 % of the rent of the office premises having floor area of 1000 square meters, the subsidy for renting will be given each year for three years.

During the period of enjoying the subsidies, the headquarters and functional headquarters of listed companies and large domestic enterprises may not rent or sublease the self-use office premises and may not change the purpose of office premises. As for those violating the abovementioned provisions, the received subsidies shall be returned.

[3] Rewards for operation: As for the headquarters and functional headquarters of listed companies and large domestic enterprises with the annual turnover of more than RMB 500 million yuan for the first time, RMB 5 million yuan will be given as the one-time award.

3. Subsidies for talents: As for the senior management of the [regional] headquarters of multinational corporations and the headquarters of listed companies and large domestic enterprises newly-introduced and registered in Hongqiao Central Business District (core area), according to their contribution to the area, 20% of household allowance will be given each year within three years. Or for the senior management purchasing self-use housing in Hongqiao Central Business District (core area), according to 3% of the total purchase price, a maximum of no more than RMB 200,000 yuan will be given as the one-time housing subsidies.

Choose one between the household allowance and housing subsidies. As for the national and Shanghai municipal thousand talents introduces by the regional headquarters working in Hongqiao Central Business District (core area), the household allowance or housing subsidies will be given according to the abovementioned standards.

ARTICLE 5 / Reporting and Approval

The reporting and approval of special funds shall be implemented according to ChapterⅢ and Ⅳ in the Detailed Rules for the Implementation of the Use Management of Special Development Funds in Hongqiao Central Business District.

ARTICLE 6 / Application Materials

[1] Materials submitted by headquarters for applying subsidies for start-up:

1. [Regional] headquarters of multinational corporations:

[1] Certificate of Approval for Establishment of Enterprise, Enterprise Legal Person Business License, Tax Registration Certificate, Corporate Organization Code Certificate [original and copy];

[2] Approval documents [original and copy] of the Department of Commerce or the Municipal Commission of Commerce on identifying regional headquarters or promoting the level of headquarters and integrating equity;

[3] Feasibility Analysis Report on Foreign Investment

[4] Approval Form of Application for Subsidies for Start-up of Headquarters Economy

2. [Regional] headquarters and functional headquarters of listed companies and large domestic enterprises:

[1] Enterprise Legal Person Business License, Certificate of Approval for Establishment of Enterprise [if any], Tax Registration Certificate, Corporate Organization Code Certificate [original and copy];

[2] Certificates of listed companies [original and copy], or written materials issued by major investor [parent company] to declare enterprises as the headquarters of domestic large corporates [attached with the Articles of Association and the copy of the verification report];

[3] Written documents of investing or authorizing to manage enterprises within the management area, attached with the business license of relevant enterprises and authorization documents [original and copy];

[4] Feasibility Analysis Report on Corporate Investment Business of enterprises setting up regional headquarters;

[5] Approval Form of Application for Subsidies for Start-up of Headquarters Economy

[Ⅱ] Materials submitted by headquarters for applying subsidies for constructing or purchasing [renting] premises

1. Applying subsidies for constructing or purchasing premises:

[1] Applying subsidies for constructing premises require the land transfer agreement, planning permit, construction permit and other commencement certificates or real estate warrant. Applying subsidies for purchasing premises require the house purchasing contract, proof of payment [invoice], and real estate warrant [original and copy];

[2] Approval Form of Application for Subsidies for Constructing or Purchasing [Renting] Premises of Headquarters Economy

2. Applying subsidies for renting premises:

[1] Office premises lease agreement and real estate warrant of rented premises [original and copy]

[2] Approval Form of Application for Subsidies for Constructing or Purchasing [Renting] Premises of Headquarters Economy

[Ⅲ] Materials submitted by headquarters for applying rewards for operation:

1. Corporate annual financial statements [original and copy];

2. Annual audit report issued by the accounting firm [original and copy];

3. Tax payment certificates issued by the tax authority;

4. Approval Form of Application for Rewards for Operation of headquarters Economy

   [Ⅳ] Materials submitted for applying talent subsidies

1. Household allowance:

[1] Resolutions of the Board of Directors regarding the election or appointment of senior management and the appointment document of senior management [original and copy];

[2] Personal identify documents [identify card or passport] of senior management [original and copy];

[3] Annual tax completion certificate of senior management [original and copy];

[4] Approval Form of Application for Household Allowance of Senior Management of Headquarters Economy

2. Housing subsidies:

[1] Resolutions of the Board of Directors regarding the election or appointment of senior management and the appointment document of senior management [original and copy];

[2] Personal identity documents of senior management [original and copy];

[3] House purchasing contract and real estate warrant [original and copy];

[4] Approval Form of Application for Housing Subsidies of Senior Management of Headquarters Economy

ARTICLE 7 / Evaluation on Supervision

1. During the transition period of construction of Hongqiao Central business District (core area), the [group] headquarters or regional headquarters of domestic and foreign large-scale enterprises which have been moved into the Hongqiao Central Business District (core area) enjoying the relevant supportive policies shall sign the District Entrance Agreement of Headquarter Enterprises with the CBDAC. During the term of the agreement, the enterprise headquarters or regional headquarters shall enjoy the rights and perform the obligations. As for those fail to perform relevant commitments, the CBDAC shall withdraw special funds which have been allocated accordingly.

2. The reporting units and individuals shall be responsible for the authenticity and legitimacy of the application materials. The using units of special funds should strictly abide by state laws and regulations and accounting systems. Special funds are used for special purposes. It is prohibited to defraud, withhold or misappropriate funds. The CBDAC shall carry out the supervision and inspection on the use of special funds of regional headquarters. If the irregularities are investigated, the CBDAC shall fully take back the subsidy funding and deal with according to the Regulations on Penalties and Sanctions against Illegal Fiscal Acts [State Council Decree No. 427]. If the circumstances are serious or violate the state laws, relevant personnel or units shall be prosecuted for their liabilities according to the law.

ARTICLE 8 / Supplementary Articles

1. The range of distribution of the special funds of headquarters economy in Hongqiao Central Business District (core area) in these opinions shall be consistent with the range of application of the special funds specified in the Measure on Management of Special Development Funds in Shanghai Hongqiao Central Business District.

2. These opinions shall be implemented from the date of publication and be terminated on December 31, 2015.

3. The CBDAC shall be responsible for the interpretation.