Jinan, capital of East China's Shandong province, introduced a set of preferential policies to attract global conglomerates and boost the development of its headquarters economy, announced at a news conference on Sept 9.
According to the policies, standards for identifying headquarters enterprises are specified, based on the type, level of expertise, and economic output of the enterprises.
The Fortune Global 500 and China's top 500 companies, as well as China's top 500 private, manufacturing, and service enterprises, Shandong's top 100 enterprises and the province's top 100 private enterprises are identified as the category of headquarters enterprises.
Enterprises have at least two subsidiaries outside the city or at least 50 percent of their activity is realized in Jinan, or their economic contribution to Jinan in previous year is greater than 20 million yuan ($2.85 million), which are included in the category.
The category also encompasses the newly registered or newly relocated enterprises, which are in line with the industrial development of Jinan, play a role in supporting major industries, sign an agreement with the government and promise an annual economic contribution of more than 20 million yuan.
In addition, policies also highlight supporting measures in office building, incentives of growth, investment promotion and ways to support talents for headquarters enterprises. Headquarters enterprises can be rewarded with subsidies for buying or building business offices. The subsidies will be 50 percent of the cost.
Preferential policies will be provided to encourage headquarters enterprises to build fixed asset investment projects in Jinan such as awarding enterprises with investments of more than 50 million yuan with five percent of the actual investment amount with a maximum annual subsidy amount of 10 million yuan.
The policies also have clarification on a number of issues, including the definition criteria for headquarters enterprises and subsidiaries, the maximum amount that can be spent on incentives and subsidy funds, the requirements for dynamic assessment of headquarters enterprises, the requirements for application policy reviews, and the duration of policy validity.