Supplementary Provisions on the Implementing Opinions on the "Shanghai Municipality Provisions Encouraging Multinational Corporations to Establish Regional Headquarters" (the “Supplementary Provisions”) (关于鼓励跨国公司设立地区总部规定实 施 意 见 的 补 充 规 定 ), issued by Shanghai Municipal Commission of Commerce, Shanghai Municipal Human Resources and Social Security Bureau, Exit-Entry Administration of Shanghai Public Security Bureau, and Shanghai Entry-Exit Inspection and Quarantine
Shanghai Municipal Government issued the Shanghai Municipality Provisions on Encouraging Multinational Corporations to Establish Regional Headquarters (“Provisions”), launching several favorable policies to encourage multinational corporations (“MNCs”) to establish or relocate their headquarters to Shanghai and improve the development of existing MNCs’ Shanghai-based regional headquarters.
In line with the Provisions, the Shanghai Municipal Commission of Commerce, cooperating with other relevant authorities, further enacted the Supplementary Provisions to expand some of the favorable policies under the Regulations, such as the following:
- Under the Supplementary Provisions, foreign-owned enterprises (including branches) not meeting the requirements to be “headquarters,” but having the responsibilities of multinational companies and meeting other criteria, can be regarded “Quasi-Headquarters Institutions” and benefit from Shanghai’s economic development policy for corporate headquarters. The conditions for qualifying as a Quasi-Headquarters Institution are below:
- The MNC has total assets of at least US $200 million, and has invested in and established at least three foreign-invested enterprises in Mainland China, and at least one of these is registered in Shanghai Municipality.
- The person in charge of the MNC’s regional business and the senior management personnel responsible for its main functions are based in Shanghai for work on a long-term basis.
- The Quasi-Headquarters Institution occupies at least 500 square meters, and has at least 50 employees operating and managing the headquarters.
- The favorable policies for Quasi-Headquarters Institutions mainly aim to ease the immigration procedures in China for foreign staff:
- Under the Supplementary Provisions, foreign employees of QuasiHeadquarters Institutions who need to enter China temporarily on multiple occasions are eligible to apply for a multi-entry visa, which is valid for up to one year with a stay of up to 180 days per entry.
- Quasi-Headquarters Institutions’ management is eligible to apply for long-term residence. Their legal representatives (persons-incharge), general managers, deputy general managers and chief financial controllers are eligible to apply for five-year foreigner residence permits; department managers are eligible to apply for four-year foreigner residence permits; and ordinary employees who are foreign nationals are eligible to apply for three-year foreigner residence permits. Foreign spouses, parents and children under 18 years of age of foreign nationals are eligible to apply for foreigner residence permits with the same validity period as the permits described above.
Date of issue: July 14, 2014. Date of effectiveness: July 14, 2014.