Measures for implementing several provisions on encouraging transnational companies to establish regional headquarters in Beijing

Notice of the Municipal Commission of Commerce, Municipal Commission of Development and Reform, Municipal Bureau of Public Security, Municipal Bureau of Finance, Municipal Bureau of Human Resources and Social Security, Municipal Bureau of Local Taxation, Municipal Bureau of Statistics and Municipal Bureau of State Taxation of Beijing on Issuing Measures for Implementing Several Provisions on Encouraging Transnational Companies to Establish Regional Headquarters in Beijing

(No 351 [2009] of the Municipal Bureau of Commerce of Beijing)

The people's governments of all districts and counties, all commissions, offices and bureaus of the Municipal People's Government, and all institutions under the Municipal People's Government:

Upon approval of the Municipal People's Government, we hereby issue Measures for Implementing Several Provisions on Encouraging Transnational Companies to Establish Regional Headquarters in Beijing for your compliance and implementation.

Beijing Municipal Bureau of Commerce Beijing Municipal Commission of Development and Reform Beijing Municipal Bureau of Public Security Beijing Municipal Bureau of Finance Beijing Municipal Bureau of Human Resources and Social Security Beijing Municipal Bureau of Local Taxation Beijing Municipal Bureau of Statistics Beijing Municipal Bureau of State Taxation

June 24, 2009

Measures for Implementing Several Provisions on Encouraging Transnational Companies to Establish Regional Headquarters in Beijing

These Measures are formulated to implement Several Provisions on Encouraging Transnational Companies to Establish Regional Headquarters in Beijing (No 15 [2009] of the Municipal People's Government of Beijing, hereinafter referred to as "Several Provisions").

I. Recognition of Regional Headquarters

(I) A company meeting either of the following conditions may be recognized as a regional headquarters upon application:

1. A foreign-funded investment company established upon approval; or

2. A foreign-funded investment management company meeting the following requirements:

(1) Total assets of its parent company are USD 400 million or more;

(2) Parent company's total paid-in registered capital in China is USD 10 million or more cumulatively and its parent company has funded or been authorized to manage at least three enterprises inside and outside the country; or its parent company has funded or authorized to manage at least six enterprises inside and outside China;

(3) Registered capital is USD 2 million or more;

(4) Parent company's only supreme business management body is in China; and

(5) For a world famous transnational company, requirements can be relaxed further.

An investment company refers to a company that engages in direct investments, established by a transnational company according to Provisions of the Ministry of Commerce on Establishment of Investment Companies by Foreign Investors.

A management company refers to an incorporated enterprise providing management, decision-making, research and developments, capital management, logistics, sales, planning, consulting, training and other relevant services for enterprises in which its parent company invests and affiliated enterprises.

(II) The Municipal Commission of Commerce responsible for recognition of transnational companies' regional headquarters in Beijing shall, within 10 workdays from the date when the application materials of an enterprise are valid and complete, finish examination of the application, make a decision on approval, and in the case of approval, issue a certificate to the applicant.

(III) To apply for recognition as regional headquarters, an applicant shall submit the following materials to the Municipal Commission of Commerce:

1. Written application signed by the legal representative of the enterprise, which performs functions of the regional headquarters;

2. Authorization documents signed by the legal representative of the parent company on the establishment of a regional headquarters and performance of basic functions;

3. Authorization documents signed by the legal representative of the parent company on the prospective legal representative of the regional headquarters, and a resume and a photocopy of identity certificate of the prospective legal representative of the regional headquarters;

4. Creditworthiness certificate and photocopy of the registration certificate of the parent company, photocopy of the certificate on the legal representative of the parent company, and balance sheets of the parent company in the last three years, which have been audited according to law;

5. Photocopies of approval certificates, business licenses and capital verification reports of enterprises in China that the parent company invests;

6. Photocopies of approval certificate, business license and capital verification report of the enterprise which perform functions of the regional headquarters; and

7. Other necessary evidentiary materials.

Unless specified as a photocopy, all materials submitted shall be originals.

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