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Policies that Encourage Multinational Companies to Establish Regional Headquarters in Beijing

Business Beijing, in cooperation with the Beijing Municipal Development and Reform Commission, is running this column to serve foreign investors. The column will offer insights into policies and rules that may affect your foreign investments in Beijing.

If you have any questions about investing in Beijing please write us via e-mail at: invest@btmbeijing.com or fax at +86 10 6715 2381, we will find someone authoritative to provide you with the best and latest information available. Please remember: only e-mails and faxes are acceptable.

      On May 26, 2009, the Beijing Municipal Government released Several Provisions on Encouragement for Multinational Companies Establishing Regional Headquarters in Beijing (New Provisions).

      If compared with previous policies, readers will notice some adjustments and improvements have been made based on the needs of enterprises for their own development; some new content has been added in the amended New Provisions, to again strengthen incentives for foreign investment. This is evident in the following:

•      The business scope of the activities of regional headquarters of multinational companies has been expanded. The operational scopes of regional headquarters of multinational companies may be expanded, and operational and management activities such as importing and exporting, domestic distribution, logistics and service outsourcing are increased. The access threshold, especially capital requirements, of regional headquarters of multinational companies has been lowered. As a result, the accumulated actual paid, registered capital volume required has been reduced from US$30 million to US$10 million.

•      Government sponsorship and reward policy provisions have been added. Incentives for regional headquarters include funding subsidies that will be given according to different levels of register capital of regional headquarters set ups or moved in Beijing after January 1, 2009, with the register capital exceeding 100 million yuan (US$15 million); for regional headquarters newly set ups or moved in, rent subsidies will be given for three successive years for renting office buildings in Beijing; regional headquarters set ups or moved in after January 1, 2009 that set up R&D centres or purchase office buildings will enjoy subsidies, fund rewards according to different levels of turnover; starting from 2009, for those regional headquarters with annual turnover exceeding 100 million yuan (US$15 million). Incentives for personnel of regional headquarters mainly include: the top-10 regional headquarters with the largest increase in the paid corporate income taxes reserved by the local government within one year, one of its principals will be rewarded in the name of the Beijing Municipal Government; the personnel equal to or above the deputy general manger level in the regional headquarter for two successive years will also be awarded.

　 In addition, in the New Provisions, the time limit and personnel scope of border entry and exit are also eased. Foreign senior managers and technical personnel, middle managers and technical personnel and common foreign personnel of the regional headquarters may apply for valid multiple entry visas of five years, three years and one year and foreigner residence permits valid for five years, four years and three years. In the New Provisions, in accordance with related State regulations, additional preferential policies will be given to the regional headquarters in terms of foreign exchange and capital management, customs clearance and the posting of bonds.

关于《鼓励跨国公司在京设立地区总部的若干规定》的政策

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      2009年5月26日，北京出台了《关于鼓励跨国公司在京设立地区总部的若干规定》（以下简称《新规定》）。重新修订后的《新规定》与原有政策相比，根据企业实际发展的需要调整完善和新增了部分内容，进一步加大了鼓励和吸引外资的力度，主要体现在：

      首先，扩大了跨国公司地区总部的业务活动范围。允许跨国公司地区总部扩大运营范围，增加进出口及国内分销、物流配送、服务外包等经营管理活动。同时，降低了跨国公司地区总部的门槛，将其在中国累计实缴的注册资本总额由3000万美元降至1000万美元。

      其次，增加了政府资助与奖励政策条款。对地区总部的鼓励政策主要包括：对2009年1月1日以后在京新设立或新迁入的，注册资本在1亿元以上的地区总部，按注册资本金额的不同档次给予资金补助；对在京新设立或新迁入的地区总部租用办公用房的，在连续3年内给予租金补助；对2009年1月1日以后在京新设立或新迁入的地区总部及其设立的研发中心自建或购买办公用房的，可以享受补助；从2009年起，对年营业收入首次超过1亿元以上的地区总部，按营业收入的不同档次给予资金奖励。对地区总部人员的鼓励政策主要包括：在一个年度内实际缴纳的企业所得税地方留成部分增量名列前十名的地区总部，对其中一位主要负责人以市政府名义给予奖励；在地区总部连续2年以上担任副总经理以上职务或相当职务的人员给予奖励。

      此外，《新规定》还放宽了出入境管理的时限和人员范围。地区总部外籍高层管理人员和技术人员、中层管理和技术人员、一般外籍员工可以分别申请办理不超过５年、３年、１年的多次入境有效签证和不超过５年、４年、３年的外国人居留许可。同时，《新规定》对于地区总部的外汇及资金管理、通关、保税等方面，也会按照国家相关规定给予进一步放宽。