Shenzhen City, Tentative Measures on Encouraging the Development of Headquarters Enterprises

Main contents: Entities that are newly incorporated, have been in operation for less than one year, and fulfil any one of the following criteria may apply to be recognised as a headquarters enterprise:

(i) in the case of a newly established enterprise, its paid-up registered capital in Shenzhen shall be at least Rmb500 million, the total assets of its parent company with a controlling share shall be at least Rmb10 billion, its production value (business revenue) in the preceding year shall be at least Rmb10 billion, and it shall undertake that the production value (business revenue) included in the statistics of Shenzhen in the year following its recognition as a headquarters enterprise shall be at least Rmb5 billion and the local financial resources it has developed in Shenzhen shall be at least Rmb60 million; or

(ii) in the case of enterprises relocated from their original place of incorporation to Shenzhen, its production value (business revenue) in the preceding year shall be at least Rmb5 billion, its paid-in registered capital in Shenzhen shall be at least Rmb500 million, and it shall undertake that the production value (business revenue) included in the statistics of Shenzhen in the year following its recognition as a headquarters enterprise shall be at least Rmb5 billion and the local financial resources it has developed in Shenzhen shall be at least Rmb60 million (Article 4).

Enterprises that were incorporated in Shenzhen and have been in operation for at least one year, have a production value (business revenue) of at least Rmb2 billion included in the statistics of Shenzhen in the preceding year, and that have developed local financial resources of at least Rmb40 million in Shenzhen may apply for recognition as a headquarters enterprise (Article 5). Enterprises that fulfil the industry development strategy and industrial policy of Shenzhen and act as a key pillar to the industry may also, upon the approval of the municipal government, apply for recognition as a headquarters enterprise (Article 6).

Enterprises that are recognised according to Article 4 hereof shall be granted an award of Rmb10 million for settling in Shenzhen during the year of recognition. If the production value (business revenue) of the enterprise included in the statistics of Shenzhen in the year following its recognition as a headquarters enterprise exceeds Rmb5 billion, the enterprise shall additionally be granted an award of Rmb5 million for each Rmb2 billion in excess of the said amount, up to a maximum aggregate settlement award of Rmb50 million. Where the award for settling in Shenzhen in the year following its recognition exceeds Rmb20 million, the portion in excess shall be paid in the following year (Article 7).

Recognised headquarters enterprises may apply for a contribution award starting from the third year after their recognition. The award amount shall be 30% of the amount of the local financial resources developed in Shenzhen in the preceding year in excess of their highest value in history since their recognition as a headquarters enterprise, up to a maximum of Rmb20 million. The enterprise shall use award funds for research and development, brand promotion, market development and human resources development (Article 8).

Where a recognised headquarters enterprise that does not own any office space in Shenzhen leases office premises for the headquarters (excluding facilities and premises of an auxiliary nature) within three years of the date of recognition as a headquarters enterprise, it shall be granted an annual subsidy of Rmb500 per square metre, up to Rmb1.5 million per year. Where a recognised headquarters enterprise that does not own any office space in Shenzhen purchases offices premises for the headquarters (excluding facilities and premises of an auxiliary nature) within three years of the date of recognition as a headquarters enterprise, it shall be granted a lump sum subsidy of 5% of the price of the premises (Articles 9 and 10).

Repealed legislation: Shenzhen City, Implementing Rules for Several Opinions on Accelerating the Economic Development of Headquarters (Trial Implementation), Sept 12 2008 and Shenzhen City, Measures for the Recognition of Headquarters Enterprises (Trial Implementation), Sept 12 2008

Issued: August 31 2012

Effective: as of date of issuance

Applicability: The term “headquarters enterprises” refers to head offices that are incorporated and established in Shenzhen with an independent legal personality, and that exercise management service functions such as investment and holding a controlling share, operation and decision making, centralised sales, and financial settlement towards enterprises within a certain area (Article 2).

After the implementation of these Measures, in the case of a discrepancy between these Measures and previous relevant provisions on headquarters economy, these Measures shall prevail (Article 29).

Main contents: Entities that are newly incorporated, have been in operation for less than one year, and fulfil any one of the following criteria may apply to be recognised as a headquarters enterprise:

(i) in the case of a newly established enterprise, its paid-up registered capital in Shenzhen shall be at least Rmb500 million, the total assets of its parent company with a controlling share shall be at least Rmb10 billion, its production value (business revenue) in the preceding year shall be at least Rmb10 billion, and it shall undertake that the production value (business revenue) included in the statistics of Shenzhen in the year following its recognition as a headquarters enterprise shall be at least Rmb5 billion and the local financial resources it has developed in Shenzhen shall be at least Rmb60 million; or

(ii) in the case of enterprises relocated from their original place of incorporation to Shenzhen, its production value (business revenue) in the preceding year shall be at least Rmb5 billion, its paid-in registered capital in Shenzhen shall be at least Rmb500 million, and it shall undertake that the production value (business revenue) included in the statistics of Shenzhen in the year following its recognition as a headquarters enterprise shall be at least Rmb5 billion and the local financial resources it has developed in Shenzhen shall be at least Rmb60 million (Article 4).

Enterprises that were incorporated in Shenzhen and have been in operation for at least one year, have a production value (business revenue) of at least Rmb2 billion included in the statistics of Shenzhen in the preceding year, and that have developed local financial resources of at least Rmb40 million in Shenzhen may apply for recognition as a headquarters enterprise (Article 5). Enterprises that fulfil the industry development strategy and industrial policy of Shenzhen and act as a key pillar to the industry may also, upon the approval of the municipal government, apply for recognition as a headquarters enterprise (Article 6).

Enterprises that are recognised according to Article 4 hereof shall be granted an award of Rmb10 million for settling in Shenzhen during the year of recognition. If the production value (business revenue) of the enterprise included in the statistics of Shenzhen in the year following its recognition as a headquarters enterprise exceeds Rmb5 billion, the enterprise shall additionally be granted an award of Rmb5 million for each Rmb2 billion in excess of the said amount, up to a maximum aggregate settlement award of Rmb50 million. Where the award for settling in Shenzhen in the year following its recognition exceeds Rmb20 million, the portion in excess shall be paid in the following year (Article 7).

Recognised headquarters enterprises may apply for a contribution award starting from the third year after their recognition. The award amount shall be 30% of the amount of the local financial resources developed in Shenzhen in the preceding year in excess of their highest value in history since their recognition as a headquarters enterprise, up to a maximum of Rmb20 million. The enterprise shall use award funds for research and development, brand promotion, market development and human resources development (Article 8).

Where a recognised headquarters enterprise that does not own any office space in Shenzhen leases office premises for the headquarters (excluding facilities and premises of an auxiliary nature) within three years of the date of recognition as a headquarters enterprise, it shall be granted an annual subsidy of Rmb500 per square metre, up to Rmb1.5 million per year. Where a recognised headquarters enterprise that does not own any office space in Shenzhen purchases offices premises for the headquarters (excluding facilities and premises of an auxiliary nature) within three years of the date of recognition as a headquarters enterprise, it shall be granted a lump sum subsidy of 5% of the price of the premises (Articles 9 and 10).

Repealed legislation: Shenzhen City, Implementing Rules for Several Opinions on Accelerating the Economic Development of Headquarters (Trial Implementation), Sept 12 2008 and Shenzhen City, Measures for the Recognition of Headquarters Enterprises (Trial Implementation), Sept 12 2008