Shanghai eases rules for setting up regional HQs
Date: 2017/2/15 11:01:26
Shanghai has further eased the rules to help foreign-invested companies set up regional headquarters to transform the city into an economic and technological innovator.
The city government said the new rules aim to enhance Shanghai’s status as an international financial and trade center, and boost the city’s technological innovation capability.
The new rules will help more organizations to set up regional headquarters and centralized functions in Shanghai, which will allow them to facilitate their money management, entry and exit, and recruitment of talented personnel.
Branches of a foreign-invested company will be able to apply for benefits, and capital requirement of the parent company will be cut to US$200 million from US$400 million.
The registered capital of the branch and the working capital allocated by the parent company should both exceed US$2 million, according to the new rules.
Companies recognized as headquarters are eligible for financial support in operations, easier cross-border money management and faster customs clearance.
Employees of headquarters can enjoy easier entry-exit procedure for business trips, assistance in education for children and medical services. The headquarters can also tap rules in Shanghai’s free trade zone and the city’s districts.
At the end of 2016, Shanghai had 580 regional headquarters, 330 investment firms and 411 R&D centers set up by foreign-invested companies.