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(Promulgated on July 20, 2002 by the Shanghai Municipal People' s
Government)
Article 1 (Purpose and Basis)
These Provisions are formulated on the basis
of relevant laws and regulations, taking into account the actual circumstances
of this
Municipality, with a view to furthering our opening to the outside
world, encouraging foreign transnational corporations to establish
regional
headquarters in this Municipality, and promoting economic development.
Article 2 (Definition)
The regional headquarters of foreign transnational
corporations mentioned in these provisions refer to the only general
organizations
that are established in this Municipality by foreign transnational
corporations in the form of investment or authorization and that
exercise
management and service function on enterprises in the region of more than one
country.
The foreign transnational corporations may set up regional
headquarters in this Municipality in the form of investment company and
management company etc. of sole ownership.
Article 3 (Scope of Application)
These provisions shall be applicable to the regional headquarters of foreign
transnational corporations (hereinafter referred to
as regional headquarters)
established in this Municipality.
Article 4 (Administrative
Departments)
Shanghai Municipal Foreign Economic and Trade Commission
(hereinafter referred to as SMFETC) is in charge of the affirmation and
examination and approval of the regional headquarters of foreign transnational
corporations, and coordinates the relevant departments
in their administration
work of the regional headquarters.
Departments of industry and commerce,
finance and taxation, foreign affairs and public security shall, in their
respective jurisdiction,
do a good job of the work of administration of the
regional headquarters.
Article 5 (Requirements)
To established a regional
headquarter in this Municipality, the following requirements shall be
met:
(1) Possessing the status of independent legal person;
(2) The total
capital of the parent company is not less than USD 400 million;
(3) The
accumulative total investment in China by the parent company is not less than
USD 30 million;
(4) The number of enterprises it invested or is authorized
to manage in and out of China is not less than 3, and it is responsible
for the
management of and service to these enterprises.
The foreign investment
companies that conform to the stipulations of the preceding clause may apply and
be affirmed as the regional
headquarters. Those that have not set up investment
company may apply for a regional headquarter in the form of management company
whose registered capital shall be not less than USD2, 000,000.
The foreign
transnational corporations that basically conform to stipulation of Clause 1 of
this Article and also to the relevant
State provisions of foreign investment
orientations, and have made significant contributions to the economic
development of the
region may apply for a regional headquarter by taking these
provisions as reference.
Article 6 (Activities of Operation, Management and
Service)
The regional headquarters established in this Municipality may
engage in the following activities in operation, management and service
in
accordance with the laws, rules and regulations:
(1) Decision-making on
investment and operation;
(2) Marketing service;
(3) Operation of funds
and financial management;
(4) Technological support and research and
development (R&D);
(5) Information service;
(6) Training and
management of staff members and workers;
(7) Other activities of operations,
management and services provided by laws, rules and regulations.
Article 7
(Application Materials)
Anyone who wants to establish a regional headquarters
in this Municipality shall apply to the SMFETC and submit the following
materials:
(1) The letter of application signed by the legal representative
of the parent company;
(2) The documents of authorization signed by the legal
representative of the parent company for establishing the regional headquarters
and performing its basic duties;
(3) The documents certifying its credit,
the documents of registration (photocopy) and the certificate of the legal
representative
(photocopy) of the parent company;
(4) The certificate of
approval and business license (photocopy) of the enterprises in China invested
by the parent company;
(5) The documents of authorization signed by the legal
representative of the parent company for the appointment of the legal
representative
of the regional headquarters and the resume as well as
appropriate identification documents of the legal representative of the regional
headquarters to be appointed.
(6) Other materials provided by laws and
regulations.
The original copy of documents shall be submitted if no
photocopies are explicitly stated in the preceding Clause.
Article 8
(Decision of Approval or Disapproval)
The SMFETC shall, within 30 days upon
the receipt of the application and materials, finish the examination and make
the decisions
of approval or disapproval. If approved, the SMFETC shall issue
certificate of affirmation or certificate of approval.
Article 9 (Filing for
the Record)
The SMFETC shall report timely to the Ministry of Foreign Trade
and Economic Cooperation of the affirmation and approval of the regional
headquarters and file for the record.
Article 10 (Industrial and Commercial
Registration and Annual Examination)
Anyone who has obtained the certificate
of affirmation or certificate of approval shall, within 30 days upon the receipt
of the
certificate of affirmation or the certificate of approval, register at
Shanghai Municipal Industry and Commerce Administration.
The regional
headquarters shall accept annual examinations by the relevant competent
departments according to laws and regulations.
Article 11 (Preferential
Policy)
The regional headquarters established in this Municipality that have
the function of research and development may enjoy preferential
policies of
high-tech enterprises according to the stipulations. The regional headquarters
registered at Pudong New Area may enjoy
preferential policies of Pudong New Area
according to stipulations.
The regional headquarters that provide key
technical skills training services to their staff members and workers may get
financial
aid in accordance with the relevant stipulations.
Article 12
(Operational Right of Import and Export and Drawback)
The establishment of
transnational purchase center and circulation and storage center of goods by a
regional headquarter is encouraged
and supported. The transnational purchase
center and circulation and storage center of goods may, in accordance with the
relevant
stipulations of the State and after approval, acquire the rights to do
import and export business, the goods exported may enjoy
the policy of drawback.
Article 13 (Management of Funds)
The regional headquarters exercising
investment management may establish a unified system of internal funds
management, to exercise
a unified management of their own funds. If foreign
exchange operation is involved, it shall do according to the relevant
stipulations
of foreign exchange control.
Article 14 (Simplifying Entry and
Exit Formalities)
Exit convenience is provided to the Chinese personnel of
regional headquarters who want to go to Hong Kong, Macao, Taiwan Regions
or
foreign countries on business.
The foreign personnel in a regional
headquarter that need many temporary entries may apply for a 1-5 year visit visa
that permits
many entries, and the period of stay of each entry shall be not
more than 1 year. Foreign personnel of a regional headquarter who
need to reside
for a long time in this Municipality, may apply for a foreigner' s residence
permit valid for 1-5 year and the working
visa of the same period that permits
many returns. The foreign personnel who come to this Municipality temporarily
shall apply
for an entry visa to the Chinese Embassy or Consulate stationed at
their country. If pressed for time, they may apply to the public
security
department for a port of entry visa, according to the relevant stipulations of
the State.
Article 15 (Reference Applications)
Transnational corporations
in Hong Kong, Macao and Taiwan Regions may take these Provisions as reference in
establishing the regional
headquarters in this Municipality.
Article 16
(Administration of Unmentioned Matters)
These matters not mentioned in these
Provisions shall be handled in accordance with the relevant stipulations of laws
and regulations.
Article 17 (Effective Date)
These Provisions shall become
effective on the date of their promulgation.
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