The Shenzhen municipal government has just unveiled an ambitious new policy to incentivise more companies to establish their headquarters within the borders of the southern Chinese tech tub.
Shenzhen recently issued the “Implementation Measures for Shenzhen Municipality to Encourage the High-quality Growth of Headquarter Enterprises” (深圳市鼓励总部企业高质量发展实施办法) which is scheduled to come into effect on 1 July 2021 and will remain effective for a period of five years.
The Measures will provide vigorous support policies to headquarter enterprises that satisfy any of the following conditions:
- Headquarter enterprises registered and operating in Shenzhen for a period of one year or more, with output value (operating revenue) of not less than 1 billion, and contributing local financial resources of no less than 40 million yuan.
- Headquarter enterprises that have been registered in in Shenzhen but have not operated in the city for a full year, and whose actually paid up registered capital is not less than 500 million yuan, and whose output value (operating revenue) last year was not less than 10 billion yuan.
- Fortune Global 500 companies who establish regional headquarters in Shenzhen that engage in R&D, sales, trade or settlement, and have executed cooperative agreements with the municipal government as independent legal person headquarter institutions.
- Enterprises that were established less than 10 years ago and that satisfy Shenzhen’s strategic emerging industry or future industrial development priorities, and whose valuation or market value is in excess of USD$1 billion, and that have executed cooperative agreements with the municipal government.
- Headquarter enterprises that satisfy Shenzhen’s industrial development strategy and industrial policies, and that have major industrial support functions or technological guidance functions, and that have executed cooperative agreements with the municipal government.
The Measures outline ample subsidies for the office expenditures of headquarter companies that choose to take root in Shenzhen. These include an annual subsidy for 50% of the rent for office buildings that companies use themselves for a period of up to five years, with an annual cap of 1.5 million yuan.
Where companies are purchasing headquarter office premises in Shenzhen for the first time, the Shenzhen municipal government will provide a one-time subsidy of 10% of the property price, with a cap of 50 million yuan.
Shenzhen has also announced that it will provide talent rewards of up to 1.5 million yuan for the management personnel of headquarter companies, as well as the senior management of their first-tier subsidiaries or other personnel that make an outstanding contribution to enterprise growth or tech innovations.