Several Measures of Shanghai Municipality for Supporting the Capacity Upgrading of the Regional Headquarters of Multinational Companies

These Measures are formulated with a view to supporting regional headquarters (hereinafter referred to as "RHQs") of multinational corporations to deeply participate in building Shanghai into the "Five Centers" (i.e., the international economic, financial, trading, shipping, and scientific and technological innovation centers), and into a socialist modern international metropolis with global influence, leveraging the RHQs' role in global resource allocation, and promoting their function agglomeration and capacity enhancement.

I. Main Objectives

To encourage the RHQs to further consolidate multiple functions such as R&D innovation, treasury management, investment decision-making, procurement and distribution, supply chain management, and services sharing, and to upgrade to high-capacity headquarters such as Asia-Pacific headquarters or global business unit headquarters. To strive to achieve the following targets within three years: to increase the number of RHQs with three or more functions to at least 400, to maintain stability and achieve growth in the number of Asia-Pacific headquarters, and to increase the number of global business unit headquarters to 20. To attract and nurture a group of developing RHQs with certain headquarters functions.

II. Key Measures

1. Providing incentives for RHQs to upgrade their capacity and add new functions. Provide a one-time high-capacity reward of RMB 3 million yuan for China RHQs upgrading to Asia-Pacific headquarters with two or more functions; a one-time capacity upgrade reward of RMB 10 million yuan for recognized global business unit headquarters; a one-time function-specific reward of RMB 3 million yuan for RHQs adding R&D innovation or treasury management functions, upon qualification; and a one-time innovation platform reward of RMB 3 million yuan for recognized open innovation platforms. RHQs are encouraged to hold high-level business events in Shanghai, such as global executive meetings, international training programs, etc., with financial incentives based on the event category. The detailed implementation rules for these rewards shall be formulated separately by the relevant departments. All districts may develop relevant support policies for nurturing RHQs based on their specific conditions. (Responsible units: the Municipal Commission of Commerce, the Municipal Bureau of Finance, and all District People's Governments)

2. Strengthening support for R&D Activities. Support RHQs with R&D functions in obtaining recognition as high-tech enterprises or technology-advanced service enterprises, which qualify for preferential policies, including a reduced corporate income tax rate of 15%. Encourage RHQs to establish venture capital funds, which qualify for relevant tax incentives as per regulations. Encourage RHQs to establish non-profit basic research science funds, with fiscal subsidies provided for university research projects supported by these funds. Encourage RHQs with R&D functions to collaborate with universities, research institutions, and enterprises in cutting-edge technologies and future industries, and provide funding for eligible collaborative innovation projects. Support RHQs in establishing municipal-level key laboratories, technology innovation centers, and professional technical service platforms, which qualify for relevant funding support policies. Include eligible RHQ innovation projects and products in Shanghai Municipality’s high-tech achievement transformation programs and relevant innovation catalogs. Support eligible RHQ industries in accessing patent expedited pre-review and priority review channels; support RHQs in applying for Shanghai Patent Pilot/Demonstration Enterprises and Shanghai Outstanding Intellectual Property Protection Projects. (Responsible units: the Municipal Commission of Science and Technology, the Municipal Tax Service, the Municipal Bureau of Finance, the Municipal Commission of Economy and Informatization, and the Municipal Intellectual Property Administration)

3. Supporting the establishment of shared R&D centers. Support RHQs in establishing open innovation platforms, facilitate cooperation between these platforms and various funds, such as state-owned funds and industrial mother funds, and strengthen support for innovation projects on the platforms. Encourage RHQs to participate in developing high-quality incubators in this Municipality, and creating collaboration platforms for startups and industry leaders, which qualify for relevant policy incentives. (Responsible units: the Municipal Commission of Commerce, the Municipal Commission of Science and Technology, the Municipal State-owned Assets Supervision and Administration Commission, and the Municipal Commission of Economy and Informatization)

4. Supporting the establishment of treasury centers. Encourage RHQs to set up treasury centers and establish capital pools as needed, explore optimizing capital pool rules, and encourage banks to gradually achieve automated cross-border payments, facilitating the host companies' centralized management of domestic and foreign currency funds. Promote the optimization of free trade account functions, allowing qualified RHQs with free trade accounts to handle RMB settlements with domestic ordinary accounts in accordance with the "Three Principles of Business Development." Support Shanghai-based banks in improving cross-border payment efficiency for RHQs. Support RHQs in effectively managing exchange rate risks, facilitate their access to Foreign Exchange Trade Center’s "Bank-Enterprise Foreign Exchange Transaction Service Platform", and encourage banks to offer discounts on margin, fees, and foreign exchange option premiums. (Responsible units: Financial Office of the CPC Municipal Committee, and the People's Bank of China Shanghai Head Office (State Administration of Foreign Exchange Shanghai Branch)

5. Supporting the development of new trade models. Support eligible RHQs with real needs to conduct offshore trade. Support RHQs in piloting bonded maintenance and cross-border remanufacturing in accordance with provisions. Eligible RHQs may be added to the Customs' list of key enterprises for Authorized Economic Operator (AEO) credit cultivation, given priority in AEO cultivation and certification, and the implementation of the "1+N" group cultivation and certification model, to fully leverage the benefits of AEO policies. Explore supporting overseas parent companies in applying for import price pre-ruling through their Shanghai-based RHQs. Encourage cross-border e-commerce companies to apply for RHQ status. Establish green channels for cross-border data flow for eligible RHQs, facilitating cross-border data transfers. (Responsible units: the Municipal Commission of Commerce, the People's Bank of China Shanghai Head Office (SAFE Shanghai Branch), Shanghai Customs, and Office of the Municipal Cyberspace Affairs Commission)

6. Encouraging RHQs to expand investment. Strengthen the implementation of deferred tax policies for overseas investors' profit reinvestment within the Chinese mainland; RHQs that utilize retained earnings, including profits, for investment expansion will be entitled to the same support policies as those applicable to new foreign investments. Encourage RHQs to establish equity investment funds and participate in SOE reforms and key industry development through equity investments. Support RHQs in consolidating business and promote eligible RHQs to list their high-quality assets in China. Encourage RHQs and the manufacturing enterprises they invest in to expedite the upgrading of production lines and the renewal of equipment, and offer financial support of up to 10% of the total approved project investment, with a maximum limit of 100 million yuan, for projects that meet the eligibility criteria for technical renovation. Optimize the direct information access mechanism for RHQs, promptly delivering relevant policies and investment information to their overseas headquarters and key decision-makers. Encourage RHQs and domestic enterprises to leverage their respective strengths and jointly expand into international markets through cooperation in products, technology, and services. (Responsible units: the Municipal Commission of Commerce, the Municipal Development and Reform Commission, the Municipal Tax Service, the Municipal Bureau of Finance, Financial Office of the CPC Municipal Committee, the Municipal State-owned Assets Supervision and Administration Commission, Shanghai Securities Regulatory Bureau, and the Municipal Commission of Economy and Informatization)

7. Streamlining entry and exit procedures for RHQ staff. Streamline the processing of APEC Business Travel Cards and Hong Kong/Macao Talent Visas for RHQ staff. Provide multi-year, multi-entry visas for overseas RHQ staff. Streamline the processing of work and residence permits for foreign talents hired by RHQs, including "acceptance with missing documents" and extended validity. Grant the accompanying spouses and dependents of RHQ experts or senior executives of Shanghai-based branches or subsidiaries the same entry and stay rights as themselves. Facilitate the issuance of residency permits for dependents of eligible foreign senior executives of RHQs. Streamline procedures for senior executives of multinational corporations attending high-level business activities in Shanghai, including high-level meetings, round-trip visas, and airport VIP services. (Responsible units: Foreign Affairs Office of the Municipal People's Government, the Municipal Talent Bureau, the Municipal Bureau of Public Security (Exit-Entry Administration), and Shanghai Airport (Group) Co, Ltd.）

Leverage Shanghai's foreign investment promotion coordination mechanism to form synergies and support RHQ development in Shanghai. All districts shall, based on their regional development positioning and industrial features, improve relevant policies to support RHQ capacity upgrading, cultivate distinctive RHQ economy clusters, to realize differentiated development of their respective RHQ economies. The Municipal Commission of Commerce, together with relevant departments, shall establish an RHQ evaluation system, continuously optimize the evaluation indicators, conduct dynamic RHQ assessments, and provide customized upgrading plans featuring "one enterprise, one file, one policy". Enhance the RHQ "service package" mechanism by assigning dedicated liaisons to strengthen government-enterprise communication and provide targeted services. Establish an RHQ extension service mechanism to help RHQs address problems in cross-regional supervision, rights protection, etc.

These Measures shall be effective as of March 1, 2025, and remain in force until February 28, 2030.