Shenzhen Encourages Multinational Companies to Set up Headquarters in the City

On March 31, 2023, The Commerce Bureau of Shenzhen Municipality released the Circular on Soliciting Public Opinions on the Revised Measures of Shenzhen Municipality for Encouraging Multinational Companies to Set up Headquarters in Shenzhen (Exposure Draft).

The Measures consist of 19 articles, which clarified the headquarters of multinational companies, improved the incentive and support measures, and detailed the facilitation measures for headquarters of multinational companies. Specifically, it (1) added the definition of “Global Business Unit Headquarters of Multinational Companies”, and expanded the recognition scope of headquarters; (2) optimized the conditions for the recognition of regional headquarters and headquarters-based institution, and added the conditions for the recognition of business unit headquarters; (3) further lowered the threshold for financial incentives, stipulating that those with annual actual utilization of foreign capitals exceeding US$10 million would be eligible for a reward of up to 4 percent, or up to RMB 100 million; and (4) added talent incentive measures with provision of housing and assistance in the school enrollment of their children, as well as measures for the protection of intellectual property rights and customs clearance facilitation, offering to reward up to 1.5 million to executives at headquarters of multinational companies and other personnel that have made outstanding contributions to the development of enterprises and technological innovation.