The Huangpu district government of Shanghai has introduced a series of policies to encourage multinational corporations to set up regional headquarters in the district. This section focuses on the funding available for a headquater’s establishment.

1. Who is eligible?

The establishment fund is available to the following entities that have been recognized by the Shanghai Municipal Commission of Commerce and are established in Huangpu district:

- Regional headquarters of multinational companies

- Business unit headquarters of multinational companies

Applying enterprises must meet the following criteria:

(1) The company must be legally established in the district/city and have been in continuous and normal operation for at least one year.

(2) The company must contribute to certain economic and social benefits. (Municipal requirement)

(3) The company must have good financial and tax credit standing, with a sound financial management system. It must not be blacklisted for dishonest practices by authorities at national, provincial, or municipal levels, and there should be no records of serious credit violations within the past three years on the Shanghai Public Credit Information Service Platform. 

(4) Companies penalized for significant production safety incidents within the two years prior to the application are not eligible to apply. (District requirement)

(5) The company must submit the required information reports for foreign-invested enterprises in accordance with regulations.

(6) The same project or matter cannot be used to apply for government financial support multiple times.

(7) The applicant is responsible for the truthfulness, accuracy, and completeness of the application materials.

Note: Unless specified, the requirements apply to both municipal and district-level rewards.

2. What is the amount of funding?

The funding amount is 5 million yuan.

3. What are the eligibility requirements?

Establishment funding is available only to recognized regional headquarters and business unit headquarters, excluding headquarters-type institutions.

To qualify, regional or business unit headquarters must have been recognized in Shanghai after November 1, 2022, with a paid-up registered capital of at least $30 million, a minimum of 10 employees, and authorization from the parent company to manage at least one domestic or international enterprise, as outlined in the Measures for Managing the Fund Dedicated to the Development of Regional Headquarters for Multinational Corporations in Shanghai (Effective from Feb 1, 2024 to Jan 31, 2029).

Applications must be submitted within three years of recognition.

4. How is the funding disbursed?

The funding is disbursed over three years as follows: 40 percent in the first year, 30 percent in the second year, and 30 percent in the third year.

5. How is the cost of funding shared?

The funding cost is shared between municipal and district finances, with the Shanghai municipality covering 40 percent and Huangpu district covering 60 percent.

Source: Huangpu District Commission of Commerce, Shanghai Municipal Commission of Commerce

Note: The English version is for reference only; the official Chinese document shall prevail.