Article 1 (Purpose and Basis)
In order to implement the „Several Opinions of the Central Committee of the Communist Party of China and the State Council on Building a New Open Economy System“, further expand opening up, create a more open investment environment that conforms to internationally accepted rules, a more convenient trading environment, a more complete legal environment, and Favorable production and living environment, more relaxed talent development environment, encourage multinational companies to set up regional headquarters and headquarters-type organizations in this city, support regional headquarters and headquarters-type organizations in Shanghai to gather business, expand functions, and upgrade capabilities, and actively participate in Shanghai“ For the construction of the „Four Centers“ and the scientific and technological innovation center with global influence, these regulations are formulated in accordance with relevant laws and regulations and the actual conditions of the city.
Article 2 (Definition)
The regional headquarters of a multinational company (hereinafter referred to as „regional headquarters“) refers to the only head office that is established in this city by a parent company registered overseas to perform management and service functions for enterprises in more than one country in the form of investment or authorization. Multinational companies must establish regional headquarters in this city in the form of enterprise organizations with independent legal personality such as wholly foreign-owned investment companies and management companies.
Multinational company headquarters (hereinafter referred to as „headquarters organization“) refers to the management decision, capital management, procurement, and sales of the parent company registered overseas in more than one country although it does not meet the regional headquarters standards of multinational companies. , Logistics, settlement, research and development, training and other support services in multiple functions of foreign-owned enterprises (including branches).
Article 3 (Scope of Application)
These regulations apply to regional headquarters and headquarters-type organizations established within this city.
Article 4 (Administrative Department)
The Municipal Commission of Commerce is responsible for the identification of regional headquarters and headquarters-type organizations, and coordinates relevant departments to carry out management services for regional headquarters and headquarters-type organizations of multinational companies.
Departments of industry and commerce, finance, taxation, foreign affairs, human resources and social security, entry-exit management, foreign exchange management, the People’s Bank of China, customs, entry-exit inspection and quarantine, etc., within their respective responsibilities, do a good job in the management and service of regional headquarters and headquarters-type institutions .
Article 5 (Conditions for Recognition of Regional Headquarters)
To apply for recognition of a regional headquarters, the following conditions shall be met:
(1) It must be a wholly foreign-owned enterprise with independent legal personality.
(2) The total assets of the parent company shall not be less than US$400 million; if an enterprise in the service industry establishes a regional headquarters, the total assets of the parent company shall not be less than US$300 million.
(3) The total registered capital paid by the parent company for investment in China is no less than 10 million U.S. dollars, and there are no less than 3 domestic and foreign companies authorized by the parent company; or domestic and foreign companies authorized by the parent company to manage No less than 6. Those that basically meet the aforementioned conditions and have made outstanding contributions to the economic development of the region may be considered as appropriate.
(4) The registered capital is not less than USD 2 million.
Article 6 (Conditions for Recognition of Headquarters Organizations)
To apply for the recognition of a headquarters-type organization, the following conditions shall be met:
(1) It must be a wholly foreign-owned enterprise or its branch with independent legal personality.
(2) The total assets of the parent company shall not be less than 200 million US dollars, and no less than
Two foreign-invested enterprises, at least one of which is registered in Shanghai.
(3) The registered capital shall not be less than 2 million U.S. dollars. If it is established as a branch, the operating capital allocated by the head office shall not be less than 2 million U.S. dollars.
Article 7 (Application Materials)
To apply for the recognition of regional headquarters and headquarters-type organizations, the following materials shall be submitted to the Municipal Commission of Commerce:
(1) Application form signed by the legal representative of the company.
(2) The authorization document for the basic functions of the regional headquarters or headquarters-type organization of the multinational company signed by the authorized signatory of the parent company.
(3) The company’s approval certificate (or record receipt) and business license (all copies). If the headquarters-type organization is a branch, it is also required to provide the Shanghai branch business license (copy) and the supporting documents of the operating capital allocated by the head office.
(4) The parent company’s audit report for the past year.
(5) The approval certificate (or filing receipt) and business license (all copies) of the enterprise invested by the parent company in China.
(6) Other materials required by laws, regulations and rules.
If the provision of the preceding paragraph does not specify to provide copies, the original documents shall be provided.
Article 8 (Examination)
The Municipal Commission of Commerce shall complete the review within 8 working days from the date of receipt of the application and other materials, and make a decision on whether to approve or not. If recognized, a certificate of recognition shall be issued.
Article 9 (Funds and Awards)
In accordance with relevant regulations, regional headquarters can obtain subsidies for opening and renting houses.
Regional headquarters have comprehensive operational functions such as operation management, capital management, research and development, procurement, sales, logistics and support services, and have made outstanding contributions to economic development and have achieved good benefits. They can be rewarded in accordance with relevant regulations.
Multinational companies that set up headquarters in Asia, the Asia-Pacific or larger regions, and meet relevant conditions, can obtain funding in accordance with relevant regulations.
The specific implementation measures for funding and rewards shall be separately formulated by relevant departments.
Article 10 (Fund Management)
Regional headquarters and headquarters-type institutions may establish a unified internal fund management system to implement unified management of their own funds. The operation of foreign exchange funds shall be implemented in accordance with relevant foreign exchange management regulations. Eligible regional headquarters and headquarters-type institutions can, in accordance with the “Regulations on the Centralized Operation and Management of Foreign Exchange Funds of Multinational Corporations” (Huifa [2015] No. 36) and other relevant regulations issued by the State Administration of Foreign Exchange, carry out activities including the centralized collection and payment of foreign exchange for current accounts. Net balance settlement, centralized management of domestic and overseas foreign exchange funds, centralized foreign exchange settlement and sale, centralized allocation of foreign debt and foreign lending quotas, and other centralized operations and management of foreign exchange funds of multinational companies.
Investment companies may establish financial companies in accordance with the „Administrative Measures for Enterprise Group Financial Companies“ to provide centralized financial management services for their investment companies in China.
Encourage regional headquarters and headquarters-type institutions to carry out various cross-border RMB businesses based on their own operation and management needs. Regional headquarters and headquarters-type institutions can complete the group’s centralized operation and management of funds through channels such as cross-border RMB two-way capital pools and cross-border RMB centralized receipts and payments under current accounts, and improve the efficiency of capital use.
Optimize the procedures for payment of foreign exchange under non-trade items, strengthen taxation guidance and services for regional headquarters and headquarters-type institutions, and provide a green channel for the record of foreign exchange payment contracts and tax determination under non-trade items of regional headquarters and headquarters-type institutions.
Regional headquarters and headquarters-type institutions located in the Pilot Free Trade Zone may open free trade accounts in accordance with regulations and handle domestic and foreign currency cross-border receipts and payments and domestic RMB receipts and payments in accordance with the principle of convertibility.
Article 11 (Simplify entry and exit procedures)
Eligible Chinese nationals from regional headquarters and headquarters-type institutions can apply for APEC business travel cards. For those who go to Hong Kong, Macau, Taiwan or abroad due to business needs, the relevant departments shall provide convenience for exit.
Foreign personnel from regional headquarters and headquarters-type institutions that need multiple temporary entries can apply for multiple visas with a validity period of no more than 1 year and a stay period of no more than 180 days; foreigners who need to come to this city temporarily should be stationed abroad in China If the embassy or consulate applies for an entry visa and the time is tight, it can apply to the public security department for a port visa to enter the country in accordance with relevant national regulations.
Foreign personnel from regional headquarters and headquarters-type organizations who need to stay in this city for a long time can apply for a residence permit for foreigners valid for 3 to 5 years.
Senior management personnel such as legal representatives of regional headquarters and headquarters-type organizations may be recommended to apply for the Permanent Residence Permit for Foreigners in accordance with the Administrative Measures for the Examination and Approval of Permanent Residence of Foreigners in China.
The entry-exit inspection and quarantine department provides a green channel for the legal representatives of regional headquarters, headquarters-type institutions and their senior managers related to the functions of the headquarters to apply for health certificates.
Article 12 (Talent introduction)
The human resources and social security departments provide convenience for foreign talents introduced by regional headquarters and headquarters-type organizations to work in this city and apply for relevant certificates.
Regional headquarters and headquarters-type organizations that introduce domestic talents and meet relevant conditions can apply for household registration in this city.
Overseas students who have a bachelor’s degree or above (degree) or special talents who are employed by regional headquarters or headquarters-type institutions, overseas students who hold a Chinese passport and have permanent (long-term) residency in foreign countries and have no domestic household registration, and others Professionals, professionals from Hong Kong and Macao Special Administrative Regions, and professionals from Taiwan can apply for the „Shanghai Residence Permit“ (B Permit) in accordance with regulations. The spouses of the above persons and children under the age of 18 or children studying in high school can apply for an attaché card.
The districts where the regional headquarters and headquarters-type institutions are located provide convenience for the talents introduced by the regional headquarters in terms of children’s enrollment, medical security, and application for talent apartments.
Article 13 (Facilitating Customs Clearance)
Customs and entry-exit inspection and quarantine departments focus on trade facilitation for qualified regional headquarters and headquarters-type institutions, innovate regulatory systems and models, and strive to improve the customs clearance efficiency of regional headquarters and headquarters-type institutions, and provide customs clearance for their import and export goods convenient.
Regional headquarters and headquarters-type organizations set up bonded logistics centers and distribution centers to integrate logistics, and customs, foreign exchange, entry-exit inspection and quarantine and other departments shall adopt convenient supervision measures.
Article 14 (Support by District Government)
Each district government can formulate policies and measures to support the development of regional headquarters and headquarters organizations based on the actual conditions of the region, and create a business environment conducive to the development of regional headquarters.
Article 15 (Applicable by reference)
Investors from Hong Kong, Macau, and Taiwan regions set up regional headquarters and headquarters-type institutions in this city, which shall be implemented in accordance with these regulations.
Article 16 (Effective Date and Validity Period)
This regulation will come into effect on February 1, 2017, and will be valid until January 31, 2022.