Beijing Municipality, Several Provisions for Encouraging the Establishment of Regional Headquarters in Beijing by Multinational Corporations

Relevant policies of Beijing for promoting the development of the financial sector shall govern Regional Headquarters established in Beijing by foreign-funded financial institutions.

Article 3: Regional Headquarters with registered capital of at least Rmb100 million newly registered and established in or newly relocated to Beijing on or after January 1 2009 shall be granted funding subsidies falling within different brackets determined based on the amounts of their registered capital. Disbursement of such subsidies shall be spread over three years.

If a single increase in the capital of a Regional Headquarters reaches a specified bracket, the Regional Headquarters shall be granted a make-up subsidy at the appropriate rate.

Article 4: A Regional Headquarters newly registered and established in or newly relocated to Beijing that leases office premises shall be granted a rent subsidy for three consecutive years. When applying for a lease subsidy, the lease term shall not be less than three years. During the subsidy period, the office premises used by the Regional Headquarters may not be leased out or subleased nor may the purpose thereof be changed. In the event of a violation of the foregoing, the subsidy that has been received shall be returned. This Article shall be trialed in Chaoyang District where the Chaoyang District government shall be responsible for its implementation. Matters may be handled with reference thereto in other districts and counties.

Article 5: A Regional Headquarters newly registered and established in or newly relocated to Beijing on or after January 1 2009 and any research and development centre established thereby that itself constructs or purchases office premises shall be eligible for a one-off subsidy. A Regional Headquarters that receives such subsidy may not sell or lease its office premises to a third party or change its purpose for five years. In the event of a violation of the foregoing, the subsidy that has been received shall be returned.

Article 6: Commencing from 2009, when the annual business revenue of Regional Headquarters exceeds at least Rmb100 million for the first time, such Regional Headquarters shall be granted a monetary award falling within different brackets determined based on their business revenue. Disbursement of such award shall be spread over three years.

Article 7: A Regional Headquarters may, in accordance with the law, engage in investment and business decision making; production and business management; fund application and financial management; technical support and research and development; marketing services; import, export and domestic distribution; logistics and delivery services; information services; undertaking of services outsourced within the multinational corporation and from other companies abroad; and employee training and management, as well as other business, management and service activities that laws, regulations and rules specify that it may engage in.

Article 8: A Regional Headquarters may establish a centralised internal fund management system to centrally manage its own funds in accordance with relevant state provisions. Where application of foreign exchange funds is involved, matters shall be handled in accordance with state foreign exchange control policies. Qualified Regional Headquarters may, in accordance with relevant provisions, participate in pilot projects for the centralised management of foreign exchange funds, extension of loans abroad, etc. by multinational corporations. A company with an investment nature may, in accordance with state measures for the administration of finance companies of enterprise groups, establish a finance company to provide centralised financial management services to its investee enterprises in China.

Article 9: Customs and entry-exit inspection and quarantine departments shall facilitate the customs clearance of the imports and exports of Regional Headquarters and the research and development centres established by them. As actually required, Regional Headquarters shall be given active assistance in engaging in business such as warehousing, logistics, distribution, delivery, bonded processing and manufacturing, and cutting-edge research and development in the Beijing Tianzhu Comprehensive Bonded Area.

Article 10: Commencing from January 1 2009, one of the persons in charge of a Regional Headquarters shall be given an award in the name of the municipal government. The foregoing award policy shall apply for three consecutive years commencing from the year following the year in which a Regional Headquarters is recognised as such.

One of the persons in charge of a Regional Headquarters ranked in the top ten in terms of the increase in the portion of actually paid enterprise income tax retained by the local government in one financial year shall be given an award in the name of the municipal government.

Such awards shall be exempt from individual income tax in accordance with relevant state provisions.

Article 11: Persons serving as deputy general manager or in a higher or equivalent position in a Regional Headquarters for at least two consecutive years shall be eligible for an award in accordance with relevant provisions of Beijing Municipality for the administration of awards for the attraction of skilled personnel.

Article 12: Foreign nationals working for a Regional Headquarters shall be eligible for multiple entry-exit convenience. The legal representative, general manager, deputy general managers, chief financial officer and other such foreign senior management and technical personnel of a Regional Headquarters may apply for multiple entry F-type visas valid for no more than five years; departmental managers and other such middle management and technical personnel may apply for multiple entry F-type visas valid for no more than three years; and ordinary foreign employees may apply for multiple entry F-type visas valid for no more than one year. The foreign spouses and minor children of the foregoing foreign nationals may apply for F-type visas of the same term as the aforementioned persons.

Foreign nationals employed by a Regional Headquarters who have entered on an L- or X-type visa may, as required, apply for an F-type visa based on the aforementioned temporary entry handling conditions.

Foreign personnel of a Regional Headquarters who are required to come to China on an urgent basis for a short stay may, if they are unable to apply for a visa at a Chinese embassy or consulate abroad in a timely manner, apply for a visa at Beijing Capital airport.

Article 13: The legal representative, general manager, deputy general managers, chief financial officer and other such foreign senior management and technical personnel of a Regional Headquarters who need to reside in Beijing on a long-term basis may apply for a foreigner residence permit valid for five years; departmental managers and other such middle management and technical personnel may apply for foreigner residence permits valid for four years; and ordinary foreign employees may apply for foreigner residence permits valid for three years. The foreign spouses and minor children of the foregoing foreign nationals may apply for foreigner residence permits of the same term as the aforementioned persons. The terms of the aforementioned residence permits may not exceed the terms of the aforementioned persons' passports.

Senior management personnel of a Regional Headquarters may apply for a Foreigner Permanent Residence Permit on a priority basis in accordance with relevant provisions.

Article 14: Chinese personnel of a Regional Headquarters who are required to go to Hong Kong or Macao on business may apply for a Hong Kong and Macao Travel Permit and an endorsement for multiple business visits. Chinese personnel of a Regional Headquarters who are required to go to Taiwan on business may, if they provide an approval document from the Taiwan Affairs Office of the State Council and a Taiwan travel permit, apply on a priority basis for a Taiwan Travel Permit for Mainland Residents.

Article 15: If a Regional Headquarters employs a foreign national to work in Beijing, it may apply for the simultaneous handling of applications for permission to employ a foreigner and a Foreigner Work Permit.

Article 16: Regional Headquarters and their research and development institutions may, for senior management personnel whom they employ and for personnel under 45 years of age who have at least a Master's degree, or who have at least an undergraduate education and a senior technical title, whom they introduce from outside of, and whom are urgently needed and in short supply in, Beijing, apply for the introduction of skilled personnel from outside Beijing. Regional Headquarters and their research and development institutions employing personnel who have at least a Bachelor's degree or at least a mid-level technical title may apply for a Beijing Work Residence Permit.

Article 17: If the child of a member of the senior management personnel of a Regional Headquarters is to enter a nursery or study at a secondary or primary school, the government of the district or county where the Regional Headquarters is located shall be responsible for making the arrangements and facilitating matters.

Article 18: The foreign nationals working for a Regional Headquarters may purchase commodity premises to live in and use themselves that comply with their actual requirements without being subject to restriction on the length of time working in China.

Article 19: The municipal commerce commission shall be responsible for the recognition of Regional Headquarters in Beijing, the realisation of subsidies and awards, and the work associated with the co-ordination and implementation of the facilitation policies, and shall take the lead in the implementation of a one-stop shop for services to foreign entities, the simplification of procedures and the enhancement of work efficiency and service quality.

The specific measures for subsidies and awards shall be formulated separately by the municipal commerce department together with other departments such as the municipal development and reform department, finance department, tax departments and statistics department. Relevant subsidies and awards shall be realised once per year and disbursed after review by the aforementioned departments and approval by the municipal government.

Article 20: These Provisions shall be effective as of January 1 2009. The municipal commerce commission shall be responsible for co-ordinating the resolution of specific issues encountered in the course of implementation. The previously issued Beijing Municipal People's Government, Circular on the Issuance of the Several Provisions for Encouraging the Establishment of Regional Headquarters in Beijing by Multinational Corporations (Jing Zheng Fa [1999] No.4) shall be repealed simultaneously.