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 addresses the office rent subsidy available under these policies.

1. Who is eligible?

The office rent subsidy 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

- Headquarters-type institutions of multinational companies

- Business unit headquarters of multinational companies

The subsidy applies to self-used office space (excluding auxiliary and supporting facilities). During the subsidy period, the office space must not be rented out, subleased, or used for other purposes. Any violation of these conditions will result in the requirement to repay the subsidy.

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?

For regional headquarters and business unit headquarters: The subsidy covers 30 percent of the rent for three years, with the rent calculated at a maximum rate of 8 yuan per square meter per day for office space up to 1,000 square meters. For self-purchased or self-built office space, a one-time subsidy equivalent to the three-year rental subsidy will be provided.

For headquarters-type institutions: The subsidy covers 30 percent of the rent for three years, with the rent calculated at a maximum rate of 5 yuan per square meter per day for office space up to 1,000 square meters. For self-purchased or self-built office space, a one-time subsidy equivalent to the three-year rental subsidy will be provided.

3. What are the specific requirements?

For regional headquarters and business unit headquarters: These entities can choose between municipal-level office rent subsidies or district-level subsidies.

To qualify for municipal-level subsidies, they must:

- Be recognized within the city after November 1, 2022

- Have a paid-in registered capital of at least $2 million

- Employ at least 10 people

- Have authorization from the parent company to manage at least one domestic or overseas enterprise

To qualify for district-level subsidies, they must:

- Be recognized within the city

- Have a paid-in registered capital of at least $2 million

- Pay social insurance for at least 10 employees within the city

If an entity meets the requirements for both municipal and district-level subsidies, priority will be given to applying for the municipal-level subsidy.

For headquarters-type institutions: These entities can only apply for district-level subsidies.

To qualify for the subsidy, they must:

- Be recognized within the city

- Have a paid-in registered capital of at least $1 million (or operating funds of no less than $1 million for headquarters-type institutions in the form of branches)

- Pay social insurance for at least 10 employees within the city

Applications for office rent subsidies must be submitted within three years of recognition as a regional headquarters, business unit headquarters, or headquarters-type institution.

4. How is the cost of funding shared?

The rent subsidy is fully borne by the Huangpu district government.

Regulatory basis

(1) 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)

(2) Implementation Rules for the Fund Dedicated to the Development of Regional Headquarters for Multinational Companies in Huangpu District (Effective from May 10, 2024 to May 9, 2029)

Sources: shanghai.gov.cn, shhuangpu.gov.cn

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