Shanghai Revised Provisions on Encouraging Multinational Corporations to Set Up Regional Headquarters

On November 8, 2022, the Shanghai Municipal Government announced the revised Shanghai Provisions on Encouraging Multinational Corporations to Set Up Regional Headquarters.

The provisions have 20 articles, mainly revised the following content: (1) New provisions for the headquarters of multinational business units clarify that the ratio of business income of business unit headquarters to the business income of the parent company abroad is not less than 10%, and business income is not less than RMB 1 billion. (2) The provisions adjust and optimize the criteria for the recognition of headquarters enterprises, reduce the shareholding ratio of the parent company to not less than 50%. (3) The provisions improve the support for headquarters enterprises, clearly provide adaptation services for the establishment of cross-border capital pools for headquarters enterprises, and explore group-type, industry chain supply chain-based customs credit cultivation certification model. (4) The provisions improve the dynamic assessment mechanism.