Beijing issues new provisions to attract foreign companies

The government of Beijing has published updated rules covering the establishment of regional headquarters in the city by multinational corporations. The rules will provide tax and foreign exchange incentives and significantly lower the total accumulative paid registered capital in China for the overseas parent company.

The Beijing Municipality, Several Provisions on Encouraging Multinational Companies to Establish Regional Headquarters in Beijing (北京市关于鼓励跨国公司在京设立地区总部的若干规定), were issued on May 21 2009 and update regulations passed in 1999. The move follows Shanghai's issuance of similar rules in 2008, and implementing opinions in March 2009.

“The purpose of this regulation is to encourage multinational corporations to locate their headquarters in Beijing,” said Zhan Hao, Grandall Legal Group's managing partner in Beijing.