Dongguan To Promote the Establishment of Enterprises-Headquarters
On June 15, 2009, Dongguan Municipal Government
issued the Measures for Promoting the Development of Corporate Headquarters
(the "Measures") and the Provisional Rules of the Dongguan Municipality on the
Determination of Enterprises as Corporate Headquarters (the "Rules"), both
effective the promulgation date. Under the Measures, the authorities of each
major industrial or commercial area of Dongguan Municipality (mainly downtown
and several industrial parks) shall focus on promoting the establishment of
corporate headquarters in different industries.
For instance, for enterprises engaged in the businesses of trading,
finance and information that plan to set up corporate headquarters in Dongguan,
the Dongguan downtown area will be recommended, although the enterprises have
the freedom to choose any area of the city.
The Measures further provide several financial and other incentives for
establishing corporate headquarters in Dongguan. For example,
under certain circumstances, an enterprise may be eligible for a
government subsidy of up to RMB 10 million. The Measures and the Rules also
provide incentives relating to tax reduction, office building, human resources
and regulatory compliance, etc., that will be available to corporate
headquarters set up in Dongguan. The
Rules set forth specific standards for how the headquarter status is determined
and how the incentives are awarded. Both
regulations are believed to aim at encouraging the local government authorities
in Dongguan to promote the establishment of corporate headquarters, as well as
attracting both domestic and overseas enterprises to set up new corporate
headquarters in, or move existing corporate headquarters to, Dongguan.
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