Shanghai 30 Guidelines to Promote the Development of Regional HQs of Multinational Corporations
In order to further open up to the outside world, improve the quality and level of the utilization of foreign capital, accelerate the gathering of regional headquarters of multinational corporations and other functional institutions in Shanghai, expand their functions and upgrade their levels, and actively participate in the construction of "Five Centers" of Shanghai, Shanghai municipal government has issued Several Opinions on Promoting the Development of Regional Headquarters of Multinational Corporations in Shanghai.
The Opinions proposes reforms in six aspects: adjusting the standards for the regional headquarters and headquarters institutions of transnational corporations, improving the convenience of investment, capital use, trade and logistics, R&D of transnational corporations, and strengthening supporting measures, and designates specific government departments to be responsible for respective implementation. The Opinions will take effect from September 1, 2019 and remain valid until August 31, 2024.
It stipulates that the total assets of the parent company of the regional headquarters of a multinational corporation shall be relaxed to US $200 million, and the total assets of the parent company of the headquarters of a multinational corporation shall be relaxed to US $100 million.
At the same time, it will relax the requirements for foreign investors to establish investment companies, reduce the total assets of foreign investors to no less than US $200 million in the year prior to the application for establishment, and cancel the requirements for paid-in registered capital or the number of invested enterprises in China.
The regional headquarters and headquarters institutions of transnational corporations are allowed to operate and manage the domestic and overseas funds of member enterprises under the centralized cross-border fund operation and management business of transnational corporations, and carry out fund collection, allocation, settlement, hedging, investment, financing and other businesses in accordance with the group business model.
It will encourage customs to provide one-stop services such as registration, customs clearance, tax reduction, exemption and bonded services to regional headquarters of multinational companies, headquarters’ institutions and foreign-funded R&D centers.
In addition, China supports the introduction of internationally renowned medical groups to set up medical institutions in Shanghai, and encourages high-quality schools for children of foreign nationals to set up and expand to meet the reginonal needs.