The Shanghai Municipal Regulations on Encouraging the Establishment of Regional Headquarters by Multinational Corporations (hereinafter the “2017 Regulations”) were implemented as of February 1, 2017.

  The 2017 Regulations represents an important measure taken by the Shanghai Municipal People’s Government for the implementation of the Notice of the State Council on Several Measures for the Expansion of the Open Door Policy and the Active Utilization of Foreign Investment. The Regulations included corporate headquarters within the scope of the policy and cancelled the requirements on the corporate form and business scope of the headquarters of multinational corporations. In addition to the original policies on funding and rewards, fund management, personnel turnover and convenience in customs clearance, the Regulations amended the conditions for the identification of headquarters and absorbed the innovations of the pilot free trade zone as well as the policy achievements of the scientific innovation center. The Regulations also added certain policies on fund management, convenience in border control and talent recruitment, and proposed for the first time certain terms on “support by district governments”, thereby encouraging the various districts to build up their ever-improving business environments in accordance with local conditions that are fit for the economic development of headquarters established by multinational corporations.

  As of the end of 2016, foreign investors had established a total of 580 regional headquarters of multinational corporations in Shanghai, as well as 330 investment companies and 411 research and development centers. Shanghai is consolidating its position as the Chinese city with the greatest concentration of regional headquarters of multinational corporations.

  For the full text of the article, please click on the following URL:

  http://www.shanghai.gov.cn/nw2/nw2314/nw2319/nw2404/nw29261/nw29262/u26aw30570.html

  Excerpted from the official website of the Shanghai Municipal People’s Government