Shanghai's Chongming district is emphasizing its general management principles and detailed rules for promoting the development of its headquarters economy.

The support policy, valid from Jan 1, 2024 to Dec 31, 2025, is in line with Chongming's ambition to encourage domestic and foreign enterprises to cluster and develop in the district, and to leverage its headquarters economy to enhance the regional economic development level of this world-class ecological island and upgrade its industrial structure.

The following are some of the key points of the policy:

I. Eligible entities and requirements

Entities eligible for support include the regional headquarters and the business unit headquarters of municipal-level multinational corporations recognized by municipal departments; municipal-level trade-oriented headquarters recognized by municipal departments; and the regional headquarters and the business unit headquarters of district-level multinational corporations as well as district-level trade-oriented headquarters recognized by district-level departments.

Enterprises applying for financial support shall also meet the following requirements:

1. Enterprises have been operating stably for more than one year after being established in Chongming in accordance with the law, with the status of an independent legal person and certain economic and social benefits;

2. They shall have a positive financial and tax credit as well as sound financial management system, neither be included in the list of joint punishment targets for dishonesty by relevant national, provincial, municipal or district departments, nor recorded on Shanghai’s public credit information service platform for serious dishonesty within three years;

3. Multinational corporations are required to submit information reports on foreign-invested enterprises according to regulations.

The applying enterprises shall not repeatedly apply for financial support for the same matter and shall be responsible for the authenticity, accuracy and completeness of their application materials.

II. Incentive methods

1. Incentive methods for the regional headquarters and the business unit headquarters of municipal-level multinational corporations recognized by municipal departments shall be implemented according to the Measures for Managing the Fund Dedicated to the Development of Regional Headquarters for Multinational Corporations in Shanghai. The rental subsidy is being implemented through the method of finance at the district and town/township (company) levels.

2. Incentive methods for the regional headquarters and the business unit headquarters of district-level multinational corporations recognized by district-level departments shall be implemented in accordance with the following rules.

(1) Reward upon recognition

For the regional headquarters or the business unit headquarters of a district-level multinational corporation, if the paid-up registered capital is no less than $10 million, the number of employees is no less than five and its parent company authorizes it to manage at least one domestic or foreign enterprise, a one-time reward of up to 1 million yuan (about $136,000) will be granted on recognition. Enterprises shall submit an application for the reward for establishment within three years after recognition.

(2) Operational reward

Chongming encourages headquarters-type enterprises to concentrate business, expand functions, enhance capabilities and upgrade their levels in the district.

For the regional headquarters or the business unit headquarters of a district-level multinational corporation, if the paid-up registered capital reaches $1 million, the number of employees is no less than five and its parent company authorizes it to manage at least one domestic or foreign enterprise and its annual turnover hits 500 million yuan for the first time, a one-time reward of up to 2 million yuan will be granted after recognition.

(3) Capital increase reward

For the regional headquarters or the business unit headquarters of a district-level multinational corporation, when it increases its investment in foreign-funded projects (excluding projects in real estate, financial or quasi-financial sectors) that conform to the industrial development of the city and the district and its annual added foreign direct investment exceeds $10 million, it can be granted a one-time reward for a capital increase up to 500,000 yuan.

During the implementation period of these rules, the district-level reward for capital increase can be granted for only one time. The amount of capital increase corresponding to the reward for capital increase shall be calculated on the basis of the amount included in the foreign direct investment statistics of the Ministry of Commerce within the calendar year.

Enterprises are required to submit applications in the following year after the capital increase amount is put to place. Meanwhile, they are not allowed to apply for the reward for capital increase and the reward for establishment simultaneously in the same year.

(4) Reward for aggregation

Chongming supports headquarters-type enterprises to concentrate their capacities and enhance their functions in line with headquarters in the district. Businesses that have been identified as municipal or district-level headquarters — while assisting in attracting a series of headquarters-level companies, such as newly established business companies, relocating holding subsidiaries and introducing highly associated companies to the district — can be given rewards by the towns/townships where they are located on the basis of the individual business situations of the new enterprises.

(5) Grant for upgrades

For any enterprise that has been identified as a headquarters, when its headquarters type is upgraded, the amount of the grant already disbursed shall be deducted to make up for the difference in the funding The grant years and annual proportions shall refer to the same type of headquarters.

(6) Grant for motivating

For enterprises that have been recognized as headquarters — when they make outstanding contributions to driving the development of industries in the district, promoting upstream and downstream cooperation in the industrial chain, increasing local people's income and wealth, improving public service capabilities and participating in social welfare activities, the towns/townships where they are located can formulate incentive policies for them.

3. Incentive methods for municipal-level trade-oriented headquarters recognized by municipal departments and district-level trade-oriented headquarters recognized by district-level departments shall be implemented in accordance with the following rules.

(1) Grant received upon recognition

A one-time grant of no more than 3 million yuan will be given to municipal-level trade-oriented headquarters recognized by municipal departments.

A one-time grant of up to 1 million yuan will be given to district-level trade-oriented headquarters recognized by district-level departments.

(2) Reward for operations

Chongming encourages headquarters-type enterprises to concentrate their business, expand functions, enhance capabilities and upgrade their levels in the district.

Municipal-level trade-oriented headquarters that mainly engage in domestic wholesale and retail activities, international trading in goods, logistics warehousing or international trade in services, or trading through platforms — when their annual operation revenue increases by more than 10 percent year-on-year for the first time starting from the year of identification — will be given one-time grants of no more than 5 million yuan, 3 million yuan, 2 million yuan and 1 million yuan respectively after identification.

In the case of district-level trade-oriented headquarters, starting from the year of identification — when their annual operation revenue rises by more than 10 percent year-on-year for the first time — one-time grants of no more than 2.5 million yuan, 1.5 million yuan, 1 million yuan and 500,000 yuan will be given respectively after identification

(3) Reward for aggregation

Chongming supports headquarters-type enterprises in concentrating their capacities and enhancing their functionalities in line with headquarters in the district.

Those that have been identified as municipal or district-level headquarters — when they assist in attracting a series of headquarters-level companies like newly established business companies, relocating holding subsidiaries and introducing highly associated companies to the district — the towns/townships where they are located can reward them based on the business situations of the newly arrived firms.

(4) Reward for upgrading

Any enterprise that has been identified as a headquarters, when its headquarters type is upgraded, the amount of the grant already disbursed shall be deducted to make up for the difference in the funding. The reward years and the annual proportions shall refer to the same type of headquarters.

(5) Grant for continuity

Existing municipal-level trade-oriented headquarters-type enterprises in the district — or existing municipal-level trade-oriented headquarters-type enterprises that relocated in the district from Jan 1, 2025, when they are recognized as still meeting the requirements for municipal-level trade-oriented headquarters — may apply for a grant for operations, a grant for aggregation and a grant for driving the development.

(6) Reward for development-driving

For enterprises that have been recognized as headquarters, when they make outstanding contributions to driving the development of industries in the district, promoting upstream and downstream cooperation in the industrial chain, increasing local people’s incomes and wealth, improving public service capabilities, and participating in social welfare activities, the towns/townships where they are located can formulate incentive policies for them.

III. Corresponding services

1. Trade facilitation

Eligible headquarters-type enterprises can be recommended to apply to be identified as exemplary enterprises of the Shanghai International Trade Distribution Center. The Chongming Customs will streamline regulatory measures for them.

Headquarters-type enterprises can join the China (Shanghai) International Trade Single Window to obtain exclusive services, including dynamic information on customs clearance and logistics, port information and financial support.

The Chongming Customs will strengthen the customs credit cultivation for headquarters-type enterprises and prioritize the inclusion of eligible headquarters-type firms in the list of key enterprises for the said cultivation and certification as the Authorized Economic Operators that enjoy the convenience of streamlined customs clearances.

2. Support for sci-tech innovation

The Chongming District Commission of Science and Technology will assist eligible headquarters-type enterprises in applying to join a "white list" of biopharma pilot enterprises and products in Shanghai. The Chongming Customs will provide headquarters-type enterprises with convenience for customs clearances for the import and export of food for research and development and for samples of cosmetics, provided that these goods meet related requirements.

3. Business registration

The Chongming District Bureau for Market Regulation will cooperate with municipal departments and guide headquarters-type enterprises to carry out "whole-process online registration" for market registration — providing convenience for their application for and the use of business e-licenses and e-seals.

4. Project investments

Chongming actively supports headquarters-type enterprises in their project investments in the district and eligible projects may be recommended for inclusion in the list of major foreign-invested projects.

Both Shanghai and the district will jointly move to boost project access, planning, land use, environmental protection, energy use, construction, imports and exports, foreign exchange and other related matters in order to expedite the implementation of projects.

5. Talent introduction

Overseas professional talents of headquarters-type enterprises, when they meet relevant conditions, may participate in the application and evaluation for professional titles. Senior executives of these enterprises, when they have made outstanding contributions, may be recommended by relevant units to partake in the evaluation for the Magnolia Awards, which honor the efforts of expatriates in various fields.

Headquarters-type enterprises can be recommended in a prioritized manner by relevant units to apply to join the International Business Leaders' Advisory Council for the Mayor of Shanghai.

Professional talents in finance, planning, shipping and other fields — when they have obtained international professional qualifications or have professional qualifications of specific countries and regions and provide services to municipal-level headquarters-type enterprises after being registered with relevant industrial regulatory departments — may have their overseas work experience be regarded as domestic work experience (except for work with special industrial requirements).

The foreign staff of municipal-level headquarters-type enterprises who have obtained permanent residence and are leading projects in the national sci-tech plan may serve as the legal representatives of new-type R&D institutions in Shanghai.

For foreign senior executives working in headquarters-type enterprises, the district provides convenience for their families in terms of residency, medical services and application for apartments designated for talents, provided they conform to relevant rules. Foreign children of foreign senior executives who meet related requirements can apply to study in local schools as international students.

6. Convenient entries and exits

Foreign staff of headquarters-type enterprises who need to temporarily enter China multiple times can apply for the multiple-entry visa with a valid period of no more than five years — for the headquarters of trade-oriented enterprises, the valid period is no more than one year and a stay duration of no more than 180 days — in accordance with relevant regulations.

Foreign staff invited by headquarters-type enterprises for urgent business needs can apply for a port visa at port visa offices according to regulations.

Overseas people that are employed by headquarters-type enterprises that need to stay in Shanghai for a long time may apply for a residence permit valid for 3-5 years in accordance with regulations.

Senior expat managers of headquarters-type enterprises may begiven the priority to apply for permanent residence in China in accordance with the Measures for the Administration of Examination and Approval of Foreigners' Permanent Residence in China and other relevant provisions.

The Chongming Customs (Exit and Entry Inspection and Quarantine Department) will provide a green channel for senior executives of headquarters-type enterprises to apply for health certificates.

7. Protection of intellectual property rights

Foreign-related trademarks of headquarters-type enterprises that are reputable in the Shanghai market and encounter frequent infringement and counterfeiting may be recommended for inclusion in the Shanghai Key Trademark Protection List.

Headquarters-type enterprises may apply to the Chongming District Bureau for Market Regulation to use the cross-regional collaborative mechanism for the administrative protection of intellectual property rights with regards to safeguarding their legal rights.

8. Other support

Chongming will leverage the specialist service mechanism of headquarters-type enterprises, the "Shanghai Enterprise Service Cloud" and industrial organizations such as the district’s foreign investment association and town/township business associations to establish a platform for government-to-business exchanges. It will regularly hold roundtables, promptly understand the needs of headquarters-type enterprises and coordinate the parties concerned to solve problems encountered by the firms during the course of their development.

IV. Application and approval

1. For the regional headquarters and the business unit headquarters of municipal-level multinational corporations that apply for funds for the headquarters of municipal-level multinational corporations, enterprises that meet the relevant conditions may submit application materials to their respective towns/townships (companies) in accordance with the requirements of the application notice. The towns/townships (companies) will conduct a preliminary review of the application materials and give their opinions. After the Chongming District Commission of Economy reviews the materials, it will submit eligible enterprises to the Shanghai Municipal Commission of Commerce. Funds will be disbursed according to relevant municipal regulations.

2. For municipal-level trade-oriented headquarters, the regional headquarters and the business unit headquarters of district-level multinational corporations and district-level trade-oriented headquarters that apply for incentives in line with Chongming's general management principle and detailed rules, enterprises that meet the relevant conditions may apply to the towns/townships (companies) where they are located in accordance with relevant regulations. After their applications are reviewed and approved by the towns/townships (companies), the towns/townships (companies) will disburse funds according to the prescribed procedures.

V. Supplementary provisions

1. Incentive funds will be disbursed over three years at a ratio of 40 percent, 30 percent and 30 percent.

2. In case enterprises that obtain the funds through fraudulent or other improper means, once verified, all their qualifications for support will be immediately canceled and the funds refunded. In addition, their dishonest behavior will be included on the platform for public credit information and data in accordance with relevant regulations. Enterprises that violate the requirements for the development of a unified national market and standardized national investment system will not be supported.

3. This support policy is valid from Jan 1, 2024 to Dec 31, 2025.

4. If an enterprise is recognized as a multiple-category headquarters, or it is eligible for support that in line with provisions of other support policies in the district, the principle of "adopting the highest type, avoiding any duplication" shall be followed.

5. This support policy shall be interpreted by the Chongming District Commission of Economy. In the process of its implementation, when there are any adjustments to policies issued by the country or the city, the latest policies from higher authorities shall prevail.

 

Source: Shanghai Chongming District Commission of Economy

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