The Dream Factory of China

Source :Qianhai Communication Center

A package of financial incentives has recently been unveiled to lure more enterprises to relocate their business operations to Qianhai.

The package offers financial support of up to 50 million yuan (US$7.04 million) on a number of aspects including business operation, relocation expenses and talent housing to enterprises that move their daily operations to Qianhai.

The incentives target Fortune 500 enterprises, China’s top 500 companies, publicly listed firms, licensed financial institutions, national high-tech firms and those that will be headquartered in the free trade area. These incentives are intended to support the Qianhai authority’s aim to introduce enterprises to the free trade area.

According to the Qianhai authority, enterprises eligible for the financial incentives are required to be Qianhai-registered, have their business operations and pay taxes in Qianhai, as well as having no records of misconduct or irregularities.

The enterprises will be rated into four categories according to their business nature and the amount of their tax payment, among other considerations. The top-rated enterprises, including the Fortune 500, China’s top 500 companies, those listed on the Shanghai, Shenzhen, Hong Kong, New York, London, Tokyo and Singapore stock exchanges or the NASDAQ, and those that are headquartered in Qianhai, will receive a yearly subsidy of 2 million yuan for business operations for three years in a row. The subsidy for the other three categories will be 1 million yuan, 500,000 yuan and 200,000 yuan, respectively.

A one-time subsidy of 1 million, 500,000, 300,000 and 100,000 yuan will be offered to the four categories of enterprises to offset their relocation expenses. Personal allowances of up to 300,000 yuan per person will be given to up to five persons who are in the managerial posts of a company. In addition, Qianhai will also offer subsidized housing to talents of eligible enterprises.

Foreign-funded enterprises in Qianhai will be eligible for a reward equivalent to 1 percent of the foreign capital of no less than US$5 million that have been used in the previous year, or of the increased foreign investment of at least US$3 million. The reward is capped at 50 million yuan.

The Qianhai authority will also offer a one-time reward of up to 300,000 yuan to agencies that help introduce a company to the free trade area. An agency will be eligible for an additional reward equivalent to 1 percent of the amount of economic contribution of the enterprise it has introduced to Qianhai on the condition that the enterprise had a direct economic contribution to Qianhai of at least 3 million yuan in the previous year. The reward will also be capped at 1 million yuan. The annual maximum amount of the rewards for an agency is 5 million yuan.