Rules on Encouraging Multinational Companies to Set up Headquarters in Beijing

(Issued by Beijing municipal government on January 29. 1999)

Article 1 These rules are formulated with a view to strengthening use of foreign capitals, encouraging multinational companies to invest in Beijing so as to exert  resources advantages，and thus promoting economic development of the capital city.

Article 2  These rules shall apply to regional headquarters or firms function as regional headquarters (Hereinafter referred to as regional headquarters of multinational companies), set up by multinational companies in Beijing. Headquarters set up by multinational companies from Hong Kong, Macao and Taiwan shall implement with reference thereto. 

Article 3  Regional headquarters of multinational companies shall be authenticated by Beijing Municipal Economic Relations and Trade Commission.

Article 4  If profits, with corporate income tax paid to relevant departments in Beijing, of regional headquarters of multinational companies are used for capital   reinvestment in this city, they shall be refunded by the municipal government, on the basis of reinvestment refund rules in Tax Law, in accordance with the actual proportion of corporate income tax enterprises paid.

Local income tax shall be exempted for regional headquarters of multinational companies.

Article 5  Within the scope of national foreign trade commodities category（ies）, regional headquarters of multinational companies shall receive support for attainment of rights to export products made by their subordinated manufacturing enterprises as well as rights to import equipments for self use.

Article 6  Supports shall also be offered to qualified regional headquarters of multinational companies for setting up joint venture foreign trade companies and joint venture whole-sale enterprises in Beijing, in accordance with laws.

Article 7  Regional headquarters of multinational companies will win backing for setting up sales companies in Beijing to sell products manufactured by enterprises in which they invest in China.

Article 8  Regional headquarters of multinational companies shall gain support for setting up finance companies in the municipal city to provide financial support to enterprises in which they invest.

Article 9  The municipal government shall offer support to regional headquarters of multinational companies for setting up investment companies and investment companies limited by shares. According to national policies, business scope of regional headquarters of multinational companies can be relaxed when it is reported to relevant governmental departments.

Article 10  With approval of foreign exchange authorities, regional headquarters of multinational companies can open more accounts than foreign exchange capital account and maintain higher maximum of settlement account with respect to their actual needs. With approval of foreign exchange authorities, regional headquarters of multinational companies can transfer foreign exchange capitals within China in compliance with laws and regulations.

Article 11  With approval of customs authorities, regional headquarters of multinational companies can set up bonded warehouses and factories according to their actual needs.  .

Article 12  Regional headquarters of multinational companies are encouraged to set up subordinated research and development institutes, training organizations, technical support centers and the like. Relevant government departments shall give them priority over such affairs as project proposal and authorization, planning, feasibility research, registration and construction, and under the regulation of the General Planning of Beijing City and general planning of land use of Beijing city, the municipal government offers construction land to regional headquarters of multinational companies and goes through procedures concerning construction land with priority.

Article 13  For senior Chinese technicians and managerial persons who are introduced from other provinces and municipalities with bachelor’s degree or above and identified as urgently required personnel，transfer formalities can be handled, after verification by Beijing Municipal Economic Relations and Trade Commission and approval by Beijing Municipal Personnel Bureau.

Article 14  Police departments of the municipal city shall give Chinese senior managerial persons in regional headquarters of multinational companies the priority to go through formalities for national passport valid for five years. Hong Kong and Macao copatriates in regional headquarters of multinational companies shall be given priority to go through formalities for one-year temporary residency and multiple-return permission stamp. Taiwan copatriates in these headquarters shall be given priority to go through formalities for one year to five-year temporary residency and multiple-return permission stamp. Foreigners in these headquarters shall be given priority to go through residency extension and multiple-return permission stamp.

Article 15  Public facilities such as water, electricity, gases, heat and communications shall be supplied with priority by relevant departments of the municipal government to regional headquarters of multinational companies and enterprises in which they invest in this city.  Policies on prices and charging shall equal that for domestic enterprises.

Article 16  Foreign senior managerial persons in regional headquarters of multinational companies as well as in enterprises in which they invest, according to relevant rules, can gain assistance over such issues as their family members’ exit-entry and residence as well as admission of their children to schools.

Foreign senior managerial persons who have made remarkable contributions to the economic development of Beijing in regional headquarters of multinational companies as well as in enterprises in which they invest, shall be commended.

Article 17  Relevant departments of the municipal government shall actively handle, with priority and immediacy, the application and approval of setting up agencies and investment companies for further establishment of regional headquarters. Beijing foreign investment administration and service institutes should strengthen contacts with regional headquarters of multinational companies and provide policy, information consultation and agency services to regional headquarters and enterprises in which they invest in this city (excluding citizens’ entering and exiting the border for personal affairs).Relevant departments of the municipal government ought to offer help to regional headquarters of multinational ompanies if they encounter problems in the process of business operations.

Article 18  The authority to interpret specific issues about the implementation of these rules resides in Beijing Municipal Economic Relations and Trade Commission. 

Article 19  These rules shall come into force as of the date of promulgation.