Administrative Measures for Promoting the Investment and Development of Foreign Enterprises
In order to fully implement national policies and measures to relax restrictions on foreign investment in the services sector, manufacturing industry and other fields, improve the industry access system formulated in accordance with negative lists -- and to allow foreign-funded enterprises to enter industries, fields and businesses that are not included in the management of negative lists, on an equal basis in accordance with relevant laws -- Wuhan East Lake High-tech Development Zone (also known as Optics Valley of China) has issued Administrative Measures for Promoting the Investment and Development of Foreign Enterprises.
The outline of the administrative measures are as follows:
1. Encourage foreign enterprises to settle down and develop.
If the total amount of foreign capital in the newly increased paid-up registered capital reaches or exceeds $3 million or the equivalent currency, 2-6 percent of the total amount of foreign capital in the newly increased registered capital in the year will be awarded for the settlement and development of the enterprise, but the maximum annual total amount for a single enterprise shall not exceed 20 million yuan ($2.87 million).
For branches established by Fortune Global 500 enterprises in the zone, 400,000 yuan will be awarded for every $1 million or equivalent currency newly added foreign investment, while the maximum amount for a single branch will not exceed 4 million yuan every year.
2. Promote investment in fixed assets.
If the annual accumulative actual investment in fixed assets of an enterprise reaches or exceeds $3 million or equivalent currency, 2-8 percent of the annual accumulative actual investment in fixed assets will be awarded to the enterprise, while the maximum annual accumulative amount for an enterprise will not exceed 35 million yuan.
3. Give rental subsidies to foreign enterprises.
Enterprises purchasing self-use plants or office buildings in the zone will be subsidized according to 10 percent of the actual amount paid. The total amount of subsidies enjoyed by an individual enterprise will not exceed 5 million yuan.
If an enterprise newly rents its own factory buildings or office buildings in the zone, it will be subsidized at 50 percent of the annual paid rent for three consecutive years and the maximum amount of annual subsidy will not exceed 2 million yuan.
International social organizations that set up branches, offices and similar institutions in the zone and lease their own office buildings shall be subsidized at 50 percent of the annual paid rent for three consecutive years, with the total annual subsidy not exceeding 2 million yuan.
4. Provide loan discounts.
If an enterprise obtains a loan for self-use from a domestic bank, it will be given a 25 percent discount to the benchmark interest rate of the People's Bank of China for the same period, according to the actual loan amount.
5. Support talent training and introduction of high-end staff.
Support personnel training. Reward foreign high-end staff. Provide convenience for foreign employees with accommodation, settlements, visa applications and work permit applications.
6. Reward the setting up of company headquarters.
For enterprises that set up regional headquarters in the zone, a one-time subsidy of 1 million yuan will be given.
7. Support the development of service industry in the free trade zone.
A one-time subsidy of 1 million yuan will be given to the first foreign-funded independent legal entity company in one field of the service sector in the Wuhan (China) Hubei Free Trade Zone.
8. Encourage research and development.
Encourage foreign-funded enterprises to set up R & D centers in the China (Hubei) Free Trade Zone and provide incentive support, based on 10 percent of the actual annual R & D expenditure of the center.
9. Reward international living facilities enterprises.
Support international chain supermarkets and stores to settle in the zone. For the annual accumulated revenue of the supermarkets and stores in the zone to reach 50 million yuan, a one-time grant of 1 million yuan will be given to start up. A one-time grant of 1 million yuan will be given to supermarkets selected into the Deloitte's "Global 100 Retailers" list for three years.
10. Reward intermediaries
Encourage intermediary agencies to introduce foreign investment.