On May 26, 2009, the Beijing Municipal Government released Several Provisions on Encouragement for Multinational Companies Establishing Regional Headquarters in Beijing (New Provisions).

If compared with previous policies, readers will notice some adjustments and improvements have been made based on the needs of enterprises for their own development; some new content has been added in the amended New Provisions, to again strengthen incentives for foreign investment. This is evident in the following:

The business scope of the activities of regional headquarters of multinational companies has been expanded. The operational scopes of regional headquarters of multinational companies may be expanded, and operational and management activities such as importing and exporting, domestic distribution, logistics and service outsourcing are increased. The access threshold, especially capital requirements, of regional headquarters of multinational companies has been lowered. As a result, the accumulated actual paid, registered capital volume required has been reduced from US$30 million to US$10 million.

Government sponsorship and reward policy provisions have been added. Incentives for regional headquarters include funding subsidies that will be given according to different levels of register capital of regional headquarters set ups or moved in Beijing after January 1, 2009, with the register capital exceeding 100 million yuan (US$15 million); for regional headquarters newly set ups or moved in, rent subsidies will be given for three successive years for renting office buildings in Beijing; regional headquarters set ups or moved in after January 1, 2009 that set up R&D centres or purchase office buildings will enjoy subsidies, fund rewards according to different levels of turnover; starting from 2009, for those regional headquarters with annual turnover exceeding 100 million yuan (US$15 million). Incentives for personnel of regional headquarters mainly include: the top-10 regional headquarters with the largest increase in the paid corporate income taxes reserved by the local government within one year, one of its principals will be rewarded in the name of the Beijing Municipal Government; the personnel equal to or above the deputy general manger level in the regional headquarter for two successive years will also be awarded.

In addition, in the New Provisions, the time limit and personnel scope of border entry and exit are also eased. Foreign senior managers and technical personnel, middle managers and technical personnel and common foreign personnel of the regional headquarters may apply for valid multiple entry visas of five years, three years and one year and foreigner residence permits valid for five years, four years and three years. In the New Provisions, in accordance with related State regulations, additional preferential policies will be given to the regional headquarters in terms of foreign exchange and capital management, customs clearance and the posting of bonds.