Multinationals with regional headquarters in Beijing may receive rent subsidy

Multinational corporations setting up regional offices in Beijing will enjoy a series of preferential policies and “one-stop” service in their application for the policies.

In the future, multinational corporations setting up regional headquarters in Beijing will enjoy a series of preferential policies. Regional headquarters are entitled to subsidies such as financial aid in establishing offices in Beijing and office rent subsidy. The specific amount of the subsidies will be published in the terms of implementation that will be released in June. On May 26, Beijing Development and Reform Commission announced that it has unveiled new regulations in order to encourage multinational companies to set up regional headquarters in Beijing.

Lowering the threshold for the establishment of regional headquarters

According to the new regulations, the threshold for multinational companies establishing regional headquarters in Beijing has been lowered, reducing the cumulative amount of registered capital invested by the parent companies of multinational corporations in China from 30 million to 10 million USD.

The new regulations have also simplified the implementation of the policies, with only the Municipal Commission of Commerce as the sole department responsible for approval, coordination and implementation of the preferential policies. Shu Wei, Deputy Director of Beijing Municipal Commission of Commerce, said that all work will be done through “interior circulation,” rather than having to go to a number of government departments for the same results.

Financial support is the core of the "new regulations"

Financial support is the core of the new policies. Under the new regulations, regional headquarters that have been newly established in or moved to Beijing after January 1 this year with a registered capital of over 100 million yuan, can receive different amounts of financial support. Regional headquarters that need to build or purchase office spaces are also entitled to such subsidies. Regional headquarters with a yearly business revenue over 100 million yuan can receive subsidies of varying amounts in accordance with their respective business revenue, and incentives will be rewarded, on behalf of Beijing Municipal Government, to the principal officers of these regional headquarters.

Regional headquarters in need of renting offices can receive financial support for three consecutive years, which is being implemented on trial basis in Chaoyang District. If the senior management officers in regional headquarters need to send their children to local kindergartens, primary or secondary schools, the governments of districts or counties in which the regional headquarter is located will help make the necessary arrangements.

Preferential policies

Senior management officers and technicians, mid-level management officers and technicians, as well as ordinary staff with foreign nationalities can respectively apply for multi-entry visas with 5 years, 3 years or 1 year validity. They can also apply for residence permits ranging from 5 years, 4 years to 1 year validity.

There will be no restrictions for the age and academic titles of senior management officers to be hired by regional headquarters or its research and development institutions.

Personnel of foreign nationality will enjoy the liberty of purchasing their own real estate, without restrictions on the length of time they have worked in China.

Translated by LOTO