Regulations of Shanghai Municipality on Promoting the Development of Small and Medium-sized Enterprises
Regulations of Shanghai Municipality on Promoting the Development of Small and Medium-sized Enterprises
· Document Number：Announcement No. 34 of the Standing Committee of the People's Congress of Shanghai Municipality
· Area of Law： Enterprises
· Level of Authority： Provincial Local Regulations
· Date issued：04-12-2011
· Effective Date：06-01-2011
· Status： Effective
· Issuing Authority： Shanghai Municipality People's Congress (incl. Standing Committee)
Announcement of the Standing Committee of the People's Congress of Shanghai Municipality
The Regulations of Shanghai Municipality on Promoting the Development of Small and Medium-sized Enterprises, as adopted at the 31st Session of the Standing Committee of the Thirteenth People's Congress of Shanghai Municipality on April 12, 2011, is hereby issued and shall come into force on June 1, 2011.
Standing Committee of the People's Congress of Shanghai Municipality
April 12, 2011
Regulations of Shanghai Municipality on Promoting the Development of Small and Medium-sized Enterprises
(Adopted at the 26th Session of the Standing Committee of the 13th Shanghai Municipal People's Congress on April 12, 2011)
Chapter I General Provisions
Article 1 With a view to optimizing the development environment for small and medium-sized enterprises (hereinafter referred to as the SMEs) of this Municipality, protecting the SMEs' right of fair competition, promoting the healthy development of SMEs, increasing the urban and rural employment, and bringing into play the important role of SMEs in the national economic and social development, these Regulations are formulated in accordance with the Law of the People's Republic of China on Promoting Small and Medium-sized Enterprises, and other laws and administrative regulations, and in the light of the actual circumstances of this Municipality.
Article 2 These Regulations apply to work related to promoting the development of SMEs in this Municipality.
The SMEs mentioned in these Regulations refer to the enterprises of diversified ownership and various forms established according to law within the administrative area of this Municipality, which help meet the social demands, increase employment, comply with the State's industrial policies, and meet the State's standards for SMEs in terms of production and operation scale.
Article 3 The municipal and district/county people's governments shall strengthen the leadership in the promotion of the development of SMEs, and bring the development of SMEs into the national economic and social development planning, so as to create a favorable environment for the establishment and development of SMEs.
The municipal and district/county people's governments shall define the major industries and fields to be supported as required by this Municipality's transforming the economic development pattern and industrial development orientation, and shall formulate corresponding policies and measures to guide the development of SMEs.
Article 4 The consultant and coordination body for promoting the development of SMEs, which the Municipal People's Government has established, shall strengthen the overall planning and policy coordination on the work of SMEs.
The competent administrative department of the Municipal People's Government in charge of promoting the development of SMEs (hereinafter referred to as the municipal SME administrative department) shall perform the following duties and functions:
1. to formulate the planning and relevant policies and measures for promoting the development of SMEs in this Municipality;
2. to comprehensively coordinate and urge relevant departments of this Municipality to fulfill the policies and measures of the State and this Municipality on promoting the development of SMEs;
3. to release relevant policy information, guide and promote the development of SMEs, coordinate and handle the difficulties and problems incurred in the development of SMEs;
4. to push forward the establishment and perfection of the service system for SMEs, and support the development of service agencies for SMEs;
5. to be responsible, jointly with relevant municipal departments, for the management of the use of special funds for the development of SMEs; and
6. other duties and functions as may be authorized by the Municipal People's Government.
The administrative department of the district/county people's government in charge of promoting the development of SMEs (hereinafter referred to as the district/county SME administrative department) shall do well the work of promoting the development of SMEs within its jurisdiction under the guidance of the municipal SME administrative department.
Relevant municipal, district/county departments shall, within their respective duties and functions, provide guidance and services for SMEs, and fulfill relevant policies and measures.
Article 5 SMEs shall conduct business by law, pay taxes by law, be honest and trustworthy, and follow the principle of fair competition, and shall not harm the national interests and public interests, or infringe upon the legitimate rights and interests of their employees.
SMEs shall, under the guidance of the national industrial policies, speed up technological progress and enhance the capability of self-innovation and development.
Chapter II Support for Start-up
Article 6 This Municipality encourages natural persons, legal persons or other organizations to invest in and start up SMEs. SMEs have the same right as other enterprises in having access to the fields not prohibited by laws and administrative regulations.
Article 7 The municipal and district/county people's governments shall take measures to encourage the establishment of science and technology-oriented SMEs, resources comprehensive use-oriented SMEs, and energy-saving and environmental protection-oriented SMEs, and shall support SMEs in developing high and new-tech industries, strategic emerging industries, and modern service industries.
This Municipality encourages the operating management personnel, scientific and technical personnel, and graduates of colleges and universities to start up SMEs, and shall guide various professional talents to flow into SMEs.
The municipal and district/county people's governments and relevant departments shall take the initiative in providing services for SMEs in starting business, and shall establish and perfect the policy system for supporting the start-up SMEs, and provide assistance for SMEs as provided in the aspects of start-up loans, business sites, and recruitment of employees.
Article 8 The municipal administrative department of human resources and social security shall, jointly with the municipal SME administrative department, strengthen the guidance in starting business by providing policy consultation, start-up training, and other guidance and services for those who start up business, and bring into play the functions of start-up guiding expert teams and trade associations in the aspects of start-up consultation and training.
Article 9 The municipal and district/county people's governments shall, in accordance with the requirements of the development of SMEs, rationally allocate necessary sites and facilities in the urban and rural planning to support the start-up SMEs.
This Municipality encourages and supports various kinds of capital to invest in the construction of SME parks by using development zones, high-tech industrial parks, and such stock housing as idle plants, to provide SMEs with production and operation places and relevant supporting services.
Article 10 Those who start up small enterprises in this Municipality and meet this Municipality's provisions on promoting employment may apply to the local district/county start-up guidance and service department for guarantee and interest subsidies for a certain amount of start-up loans.
Article 11 A small enterprise in this Municipality within 18 months since its establishment may, according to its employment situation, apply to the local district/county start-up guidance and service department for site rental subsidies.
Article 12 The municipal and district/county people's governments shall encourage SMEs to create job posts. Those SMEs that recruit this Municipality's residents with difficulty in getting employed, sign with them labor contracts for not less than one year, and pay for them social insurance premiums, may apply to the district/county administrative department of human resources and social security for financial support for a certain period.
Article 13 SMEs that have characteristics of production and special requirements of work may, after consultation with their employees, apply to the administrative department of human resources and social security for a non-fixed-time working system or aggregate working-hour system.
Chapter III Financial Support
Article 14 The municipal financial budget shall arrange special funds for the development of SMEs, and enhance the fund input step by step, so as to support the development of SMEs in this Municipality, and improve the development environment for SMEs. The proportion of municipal special funds for the development of SMEs used for small enterprises shall not be less than one third.
This Municipality's other special funds for supporting the development of enterprises shall be appropriately in favor of SMEs, and the proportion of such funds used for SMEs shall not be less than on third in principle.
The district/county people's government shall provide financial support to SMEs in the light of the actual circumstances.
Article 15 The municipal and district/county people's governments shall guide and support qualified SMEs to seek for listing financing.
The municipal SME administrative department shall, jointly with relevant municipal departments, chambers of commerce, trade associations, and intermediaries, strengthen the cultivation of listing resources for SMEs of this Municipality, and urge SMEs to perfect the corporate governance structure and realize the shareholding reform.
The municipal department of finance service shall, jointly with relevant municipal departments, strengthen the communications with relevant departments of the State, and coordinate for the settlement of relevant problems incurred in the listing of this Municipality's SMEs.
Article 16 This Municipality encourages SMEs to issue collective bonds and collective bills.
As for the intermediary charges for rating, auditing, guaranteeing, and legal consultancy service undertaken by the SMEs for issuing collective bonds and collective bills, the SMEs may apply to the municipal SME administrative department for financial support.
Article 17 The equity exchange market and non-listed enterprise equity trust registration center established by this Municipality shall provide guidance and services to SMEs' equity exchange, registration, custody or transfer.
Article 18 This Municipality establishes start-up investment guide fund to guide the establishment of start-up businesses with social capital, develop equity investment funds to support the development of SMEs in the field of high-tech industry.
This Municipality encourages the agencies of financing lease, pawn, or trust to provide financing services to SMEs.
Article 19 The Municipal People's Government and relevant departments shall encourage the financial institutions to establish special agencies to offer financial services to small enterprises, cooperate with the State's financial management department to establish special appraisal index system, and guide the financial institutions to enlarge the scale and proportion of loans granted to small enterprises.
This Municipality establishes a risk compensation mechanism for loans to small enterprises, and encourages the financial institutions to provide loans to small enterprises.
Article 20 This Municipality establishes special funds for SME financing guarantee with linkage between the municipal-level and the district/county level. The district/county people's government is encouraged to take the lead in establishing policy-related guarantee agencies in line with the local actual circumstances to provide financing guarantee services mainly for SMEs within its jurisdiction and properly replenish the capital funds and improve the guarantee capability step by step.
This Municipality encourages various kinds of capital to participate in the construction of this Municipality's financing guarantee system for SMEs, and encourages SMEs to legally and voluntarily conduct mutual-aid financing guarantee in multiple forms.
Various guarantee agencies that provide financing guarantee for SMEs in compliance with relevant conditions may apply to the municipal SME administrative department for financial support.
Article 21 The Municipal People's Government and relevant departments shall cooperate with the State's financial management departments and financial institutions to perfect the SME-oriented property mortgage system and the procedures on identifying securities for loan.
The administrative departments of industry and commerce, business and intellectual property shall provide convenience for SMEs in their guarantee setting by using movable property, equity, warehouse receipts, receivables or intellectual property right.
Article 22 This Municipality encourages the financial institutions to conduct financial innovations in the aspects of products, businesses and services directed at SMEs.
The Financial Innovation Award set up by the Municipal People's Government shall support SME-oriented financial innovation activities.
Article 23 The municipal and district/county people's governments shall promote the SMEs' credit construction, and guide SMEs to conduct business by law and with honesty, and to improve the credit rating.
This Municipality's relevant administrative departments, judicial organs, and utility services shall establish a mechanism for sharing SMEs' credit information, and provide relevant credit information check service by law.
Chapter IV Promotion of Innovation
Article 24 This Municipality encourages SMEs to conduct innovation activities. The R&D expenses incurred by the SMEs in their development of new technology, new products and new processes may be taken as additional deduction in calculating the amount of taxable income according to law.
SMEs that conduct technological innovation activities in compliance with the State's and this Municipality's provisions on technological innovation may apply to the administrative department of science and technology for financial support for SME innovation.
Article 25 Where a technical R&D or design institute established by the SME is identified by the State or this Municipality as an engineering and technological research center, an enterprise technology center or enterprise design center, it may enjoy the preferential policy on taxation and the financial support as provided by the State and this Municipality.
Article 26 The municipal SME administrative department shall, jointly with the municipal administrative departments of education, science and technology, organize SMEs, higher education institutions, and scientific research institutes in this Municipality to conduct exchanges and cooperation in production-study-research projects.
Article 27 The municipal SME administrative department shall, jointly with relevant municipal departments, regularly organize SME innovation recommendation fairs, to recommend SMEs' proprietary intellectual property right projects, production-study-research projects, science and technology achievement industrialization projects to start-up investment agencies, financial institutions, and financing guarantee agencies.
Article 28 This Municipality encourages SMEs to develop technologies and products with proprietary intellectual property rights, and to cultivate independent brands.
This Municipality's administrative department of intellectual property shall strengthen guidance to SMEs in their application for patents, provide convenience to SMEs in handling patent retrieval, and give financial support to SMEs for patent application and maintenance.
Relevant municipal departments shall strengthen guidance and service to SMEs on intellectual property protection, and protect the SMEs' intellectual property rights according to law.
Chapter V Market Exploitation
Article 29 The purchaser and the procurement agency of this Municipality's government procurement shall release procurement information to the general public, and provide guidance and services for SMEs to participate in government procurement. The eligible SMEs may enjoy the exemption and reduction of tender bond or other expenses.
As for those government procurement projects within the provided budget, the purchaser shall make purchases from those SMEs that are able to furnish the supply in compliance with the procurement requirements; as for those government procurement projects beyond the provided budget, the purchaser shall give the priority to purchase from the SMEs under the equal conditions.
Article 30 The administrative department of commerce, chambers of commerce, trade associations of this Municipality shall strengthen guidance and services to SMEs in making investment and tapping the market.
When participating in exhibitions and trade shows, the SMEs may apply to the administrative department of commerce for financial support in accordance with the provisions.
Article 31 The municipal SME administrative department shall regularly organize the exchanges concerning projects, technologies, supply and demand among big enterprises and SMEs, so as to provide convenience for big enterprises and SMEs to carry out economic and technical cooperation.
The SMEs may apply to the municipal SME administrative department for financial support for technological transformation projects which support the products of big enterprises.
Article 32 This Municipality implements the SME informatization application and popularization projects to guide SMEs to raise the level of R&D, management, production and services by the use of information technology, and encourages SMEs to explore both international and domestic markets by using the e-commerce platform and the public information platform.
Article 33 This Municipality's administrative department of quality and technical supervision shall encourage SMEs to pass assessment of the quality management system certification, the environmental management system certification, the product certification, and other international standard certification, and shall support SMEs to adopt international or domestic advance standards to improve the quality of products and services.
Chapter VI Service Guarantee
Article 34 The municipal SME administrative department shall collect and compile information of the State and this Municipality on industrial policies, supporting measures, industry trends, administration procedures, special funds in relation to the development of SMEs, and make such information public on the Shanghai SME website. Relevant departments in this Municipality shall cooperate by providing information in a timely manner.
Article 35 The SME comprehensive service agencies established by the municipal and district/county people's governments shall, respectively under the guidance of the municipal SME administrative department and the district/county SME administrative departments, provide policy consultation, information transmission, and other public services for SMEs, and shall contact and guide intermediaries to provide services for SMEs.
Article 36 This Municipality encourages and supports the development of various intermediaries that engage in start-up guidance, financing services, technical support, legal services, intellectual property services, information services, management consultation, or vocational training.
The municipal SME administrative department shall, jointly with relevant municipal departments, take measures to guide intermediaries to improve the quality of services for SMEs, and shall give support to the intermediaries with high-quality service and good reputation.
Article 37 This Municipality supports the industrial and commercial federations at all levels to participate in promoting the development of SMEs and in building the SME service system.
Chambers of commerce, trade associations and other social organizations shall strengthen the trade self-regulation, and shall, according to the provisions of the laws and regulations, play a role in SMEs' consultation services, publicity and training, policy suggestions, protection of rights and interests, and release of trade information.
Article 38 The administrative departments of finance and taxation shall fulfill the State's preferential fiscal and taxation policies for supporting the development of SMEs, and shall grant taxation exemption and reduction by law to the eligible small meager-profit enterprises and SMEs that invest in projects encouraged by the State.
Article 39 The municipal administrative department of statistics and relevant municipal departments shall, jointly with the municipal SME administrative department, regularly conduct classified statistics, monitoring, and analysis and release of relevant statistic information of the SMEs above the scale in this Municipality, and shall strengthen the statistics and analysis of the SMEs below the scale.
Article 40 The municipal SME administrative department shall, jointly with relevant municipal departments and district/county SME administrative departments, prepare the SME annual development report, reflecting the SMEs' development situation and the conduct of services and guarantee, and shall make the report public.
Article 41 The administrative organs at all levels in this Municipality shall optimize the administrative procedures, simplify the examination and approval links, so as to provide open and transparent, convenient and highly efficient administrative services for SMEs, intermediaries, chambers of commerce, and trade associations.
Chapter VII Protection of Rights and Interests
Article 42 The SMEs' legal operation right is protected by law, and any unit or individual shall not abuse powers to illegally occupy or use without compensation the enterprise property.
When dealing with SMEs' application for registration, administrative examination and approval, and annual inspection, relevant departments shall not set additional conditions except for those provided by laws and regulations, and shall not let the case lie over in violation of the provision.
Article 43 Any unit or individual shall not have one of the following acts:
1. forcing or forcing in disguised form the SMEs to purchase products or accept designated services;
2. forcing or forcing in disguised form the SMEs to provide assistance;
3. asking the SMEs to make contributions to participate in evaluation or training in violation of the provisions of laws and regulations;
4. collecting charges from or imposing fines on SMEs in violation of the provisions of laws and regulations; or
5. other acts of increasing the SMEs' burden in violation of the provisions of laws and regulations.
As for the acts in violation of the above-mentioned provisions, the SMEs are entitled to refuse and to make reports or complaints.
Article 44 As for an administrative organ's infringement on the legitimate rights and interests, the SMEs are entitled to report to the superior organ of the tort-doer or the administrative supervisory department. The superior organ or the administrative supervisory department shall investigate and handle the case according to law.
Where the SME disagrees with the specific administrative act made by an administrative organ, it may apply for an administrative reconsideration or lodge an administrative lawsuit.
The administrative organ and its working staff shall not retaliate against the SME that has made the report, applied for the reconsideration, or lodged the lawsuit.
Article 45 Where the State functionaries abuse the power, neglect the duty, play favoritism and commit irregularities, infringing upon the SMEs' legitimate rights and interests, the unit which they work in or the competent administrative department at the upper level shall give disciplinary sanctions according to law; where the act constitutes a crime, the wrongdoer shall be prosecuted for criminal liability according to law.
Chapter VIII Supplementary Provisions
Article 46 The identification criteria of small enterprises, small meager-profit enterprises, and SMEs above or below the scale mentioned in these Regulations shall follow the relevant provisions of the State.
Article 47 These Regulations shall be effective as of June 1, 2011.