Policy opinion on “Program123” to attract SOSE enterprises

In order to support the transfer of international service outsourcing, accelerated convergence of enterprise handling in international service outsourcing and software export (SOSE) in Wuxi and build Wuxi Taihu Protection Zone into a “Service Outsourcing Demonstration Zone in China”, this Opinion is hereby formulated and goes as follows:

I. Objective of Development

By the end of 2010, Wuxi had gathered 100 SOSE Enterprises. Each of them had more than 2,000 employees and an annual export volume exceeding $ 30 million (hereinafter abbreviated to “Program 123”).

II. Eligible Enterprise

An enterprise intending to apply for the key support shall meet the following requirements:

(I) The SOSE Enterprises should have a good reputation and development potential, and have registered in Wuxi with a paid-in registered capital no less than 20 million yuan ($3.03 million);

(II) It must be an enterprise undertaking international IT outsourcing (ITO), business process outsourcing (BPO), creative design outsourcing and software export business;

(III) It must be an enterprise with more than 2,000 employees and covering an annual export volume of $30 million within three years.

III. Supporting Policies

Wuxi Municipal Government, the government of each county-level city or district, or the administrative committee of each industrial park will provide the sanctioned SOSE Enterprises with policy-based supports as follows:

(I) Rent Reduction & Exemption: A SOSE Enterprise will be offered a leasehold office, ten square meters for each employee. The renting fee will be exempted for the first year and an additional 50 percent discount for the second and the third year. Its implementation is made by the county-level city, the district governor the administrative committee of each industrial park.

(II) Financial Subsidy: A SOSE Enterprise will be granted a lump-sum subsidy of 5-10 million Yuan for bringing in and training of talents, if it has over 500 employees and its annual export volume exceeds $ 3 million.

(III) Export Reward: A SOSE Enterprise will be rewarded 10,000 yuan for added exports over the previous year amounting to $ 50,000, for 3 years , to the export statistics of the Customs or the service outsourcing contract, the registration certificate of export contract and the exchange memo of bank. Taking an export volume of $ 500,000 as the base for the first period, the reward will be funded by Wuxi Municipal Government and the county-level city or the district government, or the administrative committee of industrial parks.

(IV) Reward for Talents: with an educational background of junior college or above, talents employed by SOSE Enterprises will get a reward equal to 30% of their individual income tax for five years and the reward is granted on a quarterly basis by the corresponding financial authorities.

(V) Others: SOSE Enterprises can enjoy the policies stated in the files promulgated by the People’s Government of Wuxi Municipality, such as “Opinions on Accelerating Development of Service Outsourcing Industry”, “Trial Regulations on Further Attracting and Recruiting Excellent Talents”, and the forthcoming policies as long as they do not conflict with these Opinions.

IV. Means of Implementation

(I) Set up a “Program 123”-steering team to attract SOSE Enterprises and an office. The office is based on the municipal Bureau of Foreign Trade and Economic Cooperation (Service Outsourcing Industry Development Boosting Office) and responsible for conducting the program.

(II) SOSE Enterprises applying for key support shall file an application to the local government of a county-level city, district, or the local administrative committee of industrial park first. After initial assessment, the application will be submitted to the “Program 123” office for further inspection. After that, the steering team will deliver its comment and forward the application to Wuxi Municipal Government for final approval, if authorized. Appraisals are made once a quarter.

(III) The enterprise shall provide the following documents while making an application:

(1) Application;

(2) Copy of Business License;

(3) Feasibility Study Report (including information as to the management team, the industrial background, the business objective, the marketing strategy, the development measures, the partners and the agreement of intent, etc.);

(4) The Contract and the Articles of Association;

(5) Other documents required by the examination & approval authorities.

A table of contents shall be made for the foregoing documents, which are bound together, made in quintuplicate and submitted to the relevant authorities.

(IV) This Opinions apply to SOSE Enterprises having registered in the city proper of Wuxi (including Xinwu district, Binhu district, Xishan district, Huishan district, Liangxi district).

(V) These Opinions become effective as of the date of its promulgation and its implementation regulations will be made by the “Program 123” Office to Attract Enterprises Handling International Service Outsourcing and Software Export.

*This English version is only for reference. To learn more, please refer to the authoritative Chinese version.