What are the criteria for accrediting high-tech enterprises?

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For an enterprise to be accredited as a high-tech enterprise, the following conditions must be simultaneously met:

(I) The enterprise has been registered and established for more than one year at the time of application.

(II) The enterprise owns intellectual property rights which are a core technical support for its main products (services). The ownership of these intellectual property rights may have been acquired through such means as independent R&D, transfer, donation, or mergers and acquisitions (M&A).

(III) The technologies serving as core technical support for the enterprise's main products (services) shall fall within the High-tech Fields Supported by the State.

(IV) The number of scientific and technological personnel engaged in R&D activities and relevant technical innovation within the enterprise shall account for no less than ten percent of its total number of employees for that year.

(V) The ratio of the enterprise's total R&D expenses in the previous three fiscal years (or actual period of operation, if the enterprise has been operating for less than three fiscal years) to its total sales revenue for the same period shall meet the following criteria:

1. For enterprises with sales revenue of up to 50 million yuan (inclusive) in the most recent year, the proportion shall be no less than five percent.

2. For enterprises with sales revenue between 50 million yuan and 200 million yuan (inclusive) in the most recent year, the proportion shall be no less than four percent.

3. For enterprises with sales revenue exceeding 200 million yuan in the most recent year, the proportion shall be no less than three percent.

In addition, of the enterprise's total R&D expenses, at least 60 percent shall be allocated to domestic R&D activities in China.

(VI) The ratio in the most recent year of the enterprise's revenues generated by high-tech products (services) to its total revenues for the same period shall be no less than 60 percent.

(VII) The appraisal of the enterprises' innovation capability shall meet the relevant requirements.

(VIII) The enterprise has not experienced any major safety or quality accidents, or committed serious environmental violations, in the past year prior to its accreditation application.

 

Source: Measures for the Administration of High-tech Enterprise Accreditation