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 operational rewards available under these policies.

1. Who is eligible?

Operational rewards are 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

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 are the requirements?

3. What is the amount of funding?

For regional headquarters:

Note:

(1)Applications for municipal-level rewards must be submitted in the year following the achievement of the revenue criteria.

(2) Further rewards for revenue segments of 5 billion yuan or more can be applied for in the year following both the achievement of the criteria and the utilization of the municipal-level reward for the revenue segment of 1.5 billion yuan or more.

For business unit headquarters:

Note:

(1) Applications for municipal-level rewards must be submitted in the year following the achievement of the revenue criteria.

(2) Further rewards for revenue segments of 5 billion yuan or more can be applied for in the year following both the achievement of the criteria and the utilization of the municipal-level reward for the revenue segment of 2 billion yuan or more.

For headquarters-type institutions:

Note:

(1) Applications for the first three rewards must be submitted in the year following the achievement of the revenue criteria.

(2) Further rewards for revenue segments of 5 billion yuan or more can be applied for in the year following both the achievement of the criteria and the utilization of the initial rewards for revenue segment of 1.5 billion yuan or more.

4. How are the rewards disbursed?

The funding is provided as a one-time grant, 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?

Municipal-level reward: The cost is shared between municipal and district finances, with 40 percent covered by the municipality and 60 percent by Huangpu district.

District-level reward: The cost is fully borne by Huangpu district.

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.