Huge Incentives to be Given to Companies Setting Up Headquarters in Shenzhen
To help attract more enterprises to set up headquarters in Shenzhen, the city is now offering huge financial incentives including rewards that can reach 50 million yuan depending on the enterprise’s revenues.
Companies that are recognized as headquarters enterprises can receive a settlement prize of 10 million yuan in their first year of recognition plus an additional government funding that could quintuple is the enterprise revenues exceeds 50 million yuan that will be based on new local policies that is related to business and industrial development. The city government will be handing out subsidies of 500 yuan per square meter per year for rentals of any headquarter offices which caps at 1.5 million yuan a year. Enterprise that purchases offices to serve as headquarters will get a one time subsidy which is 5 percent of the total purchase cost.
The only requirement that is asked from the enterprises before they can benefit from the new preferential policies is that they must have been operating in Shenzhen for at least ten years and can not sell or rent their offices or use them for any purposes other than specified. These companies must also meet steep requirements before they are even recognized as headquarters enterprises. Newly registered companies operating in Shenzhen for less than a year must have a registered capital of at least 500 million yuan and their holding companies total assets and revenues in the first half of the year should reach 10 billion yuan.
And on their second year these companies must reach revenues of at least 5 billion yuan and contributes at least 60 million yuan to the city’s fiscal revenue in their second year as a headquarter enterprise. Also enterprises that relocated their offices to Shenzhen must have operated in the city for less than a year must have generated revenues of 5 billion yuan in their previous year.
Companies that meet these new development strategies and policies can apply to be a headquarter enterprise once the receive approval from the local government.