Notice on Printing and Issuing 2

TKFGB (2010) No. 75

Notice on Printing and Issuing: Measures for Recognizing Head Office Enterprises of Nengda Business District in Nantong Economic & Technological Development Area

The Office of the Administration Committee of Nantong Economic & Technological Development Area

August 16, 2010

Measures for Recognizing Head Office Enterprises of Nengda Business District in Nantong Economic & Technological Development Area

For all departments from government authorities, towns, townships, neighborhoods and agencies stationed in the development area and other relevant units:

According to research conducted by the Working Committee of the Communist Party of China (CPC) and the Administration Committee, Measures for Recognizing Head Office Enterprises of Nengda Business District in Nantong Economic & Technological Development Area is hereby printed and issued for your compliance.

Article 1

These measures are hereby formulated for the purposes of implementing the Several Opinions of the Nantong CPC Committee and Nantong People’s Government on Promoting Good and Fast Development of Nantong Economic & Technological Development Area (TKFGB (2010) No. 74) and standardizing recognition and management of head office enterprises of Nengda Business District.

Article 2

Head office enterprises referred to herein mean the legal person institutions which are legally funded and established in accordance with Nengda Business District’s overall plan that exercise management, service and other functions towards affiliated enterprises or agencies in a certain area. International, national and large regional enterprise operation head offices or branch companies are considered comprehensive head office enterprises. Relatively developed enterprises with great development prospects that have investment, marketing, R&D, logistics and some other head office functions are known as functional head office enterprises.

Article 3

Head office enterprises in Nengda Business District shall follow the direction of national industry development, have status as an independent legal person, conduct uniform accounting, and be registered and established in Nengda Business District. They will undergo taxation registration and pay enterprise income taxes and other taxes and charges therein.

Article 4

Famous multinational corporations, domestic large enterprise groups, industry-leading enterprises and leading enterprises in emerging industries adhering to the nation’s industry development orientation are encouraged to establish head offices in Nengda Business District.

Article 5

Enterprises shall apply for recognition as head office enterprises by themselves. The Economic and Trade Bureau (the Investment Service Center) of the development area will lead the joint examination work.

Article 6

In order to apply for recognition as a comprehensive head office enterprise, an enterprise shall meet the following conditions:

(1) Registered capital shall be more than 30 million yuan ($4.81 million) and taxes paid to the national treasury every year shall be more than 6 million yuan (excluding customs duties, hereinafter the same).

(2) At least two affiliates outside the development area must be wholly funded or controlled by the enterprise.

Article 7

In order to apply for recognition as a functional head office enterprise, an enterprise shall meet the following conditions:

(1) Investment head office

Registered capital shall not be less than 30 million yuan and taxes paid to the national treasury every year shall not be less than 3 million yuan. The enterprise shall be an investment enterprise that focuses on capital operation and mainly carries out daily operations and long-term development on the basis of “investment returns”. Where an investment head office is a multinational corporation, it may directly apply for recognition as an investment head office in accordance with the Provisions on the Establishment of Investment Companies by Foreign Investors promulgated by the Ministry of Commerce.

(2) Marketing head office and logistics head office

Registered capital shall not be less than 20 million yuan and taxes paid to the national treasury every year shall not be less than 2 million yuan. The enterprise shall be a marketing enterprise selling products to customers in a large area or a logistics enterprise conducting logistics chain management, demand forecast, settlement and other functions.

(3) R&D head office

Registered capital shall not be less than 5 million yuan and taxes paid to the national treasury every year shall not be less than 1 million yuan. The enterprise shall be an independent legal person providing R&D management and services for relevant enterprises.

Article 8

Recognition conditions and encouragement policies may be determined on a case-by-case basis for special head office enterprises or head office enterprises in emerging industries.

Article 9

In order to apply for recognition as a head office enterprise, an enterprise needs to submit the following valid evidentiary documentation to the Economic and Trade Bureau (the Investment Service Center) of the development area:

(1) Head office enterprise recognition application signed by legal representative of the enterprise;

(2) The enterprise’s written promise that it will neither move its registered office out of the development area nor change its tax payment obligations in the development area within six years.

(3) Registration documents of the parent company, identity certification documents of the legal representative of the parent company, and authorization documents for functions of the head office enterprise and prospective legal representative head office enterprise signed by the legal representative of the parent company;

(4) Approval certificate, business license, tax registration and capital verification report of the applying enterprise;

(5) In the case of application for recognition as a comprehensive head office, it is necessary to submit a list and basic information (e.g., business license, tax registration certificate, affiliation relationship certificate, etc.) of affiliates wholly funded or controlled by the enterprise;

(6) Other documents proving functions of the head office.

Article 10

After the Economic and Trade Bureau (the Investment Service Center) calls relevant departments to conduct joint examination, the application will be sent to the Administration Committee for examination and approval if the enterprise meets recognition conditions for head office enterprises. The Economic and Trade Bureau (the Investment Service Center) will reply and explain the reasoning if the enterprise doesn’t meet recognition conditions.

Article 11

Recognized head office enterprises will enjoy supporting policies expressly noted in relevant documents. Head office enterprises newly brought into the development area will enjoy an entry subsidy. Head office enterprises that develop local financial strength will enjoy tax and charge awards as well as other development awards.

Article 12

In case of a name change, restructuring or other significant changes on the part of a recognized head office enterprise, the enterprise shall report to the Economic and Trade Bureau (the Investment Service Center) within 10 working days after completion of relevant formalities. The Economic and Trade Bureau (the Investment Service Center) will transmit the report to the Administration Committee for reconfirmation.

Article 13

The Economic and Trade Bureau (the Investment Service Center) will perform annual reexaminations for recognized head office enterprises and report relevant reexamination information to the Administration Committee for recording.

Article 14

Where one of the following circumstances occurs to a recognized head office enterprise and is found to be true through inspection, the enterprise’s qualification as head office enterprise will be revoked and the enterprise will cease enjoying relevant preferential policies. The enterprise may also be prosecuted for legal liabilities according to the seriousness of the circumstance:

(1) The enterprise is found to be nonconforming to recognition conditions in annual reexamination;

(2) The enterprise has applied for recognition as a head office enterprise and enjoys policy support by virtue of false documentation; or

(3) Other violations of laws and rules.

Article 15

These measures shall be implemented as of the day of promulgation.

Printed and issued on August 16, 2010 Printed in 30 copies in total