The 2021 Annual Conference on Multinational Cooperations Investment in Guangdong was held in Guangzhou on September 28th. (Photo provided to Newsgd.com)
Guangdong has lowered the identifying standards of regional headquarters of multinational companies. Those with paid-in registered capital of no less than USD 2 million can be identified as the regional headquarters, cutting USD 1 million compared with the previous minimum amount.
The above incentives are parts of the revised measures on encouraging multinational companies to establish regional headquarters in the province, announced at the 2021 Annual Conference on Multinational Cooperations Investment in Guangdong on September 28th.
The revised measures will take effect from October 1st with a valid period of 5 years, aiming to ramp up policy incentives by providing multinationals with special government funds and R&D subsidies.
Moreover, regional headquarters of multinational companies with an annual foreign investment of over USD 10 million will be awarded 2% of the investment (with a cap of RMB 100 million). For companies that pay tax on an income of more than RMB 100 billion annually for the first time, there will also be a one-time award of 30% of the contribution.
According to Yuan Baocheng, Vice-Chairman of Guangdong Provincial Committee of the Chinese People's Political Consultative Conference, Guangdong will continue to provide foreign enterprises, especially multinationals, with quality services, including the Through Train for Multinational Enterprises and the Round Table of Multinational CEOs. Yuan hopes that Guangdong and multinationals can join hands to strengthen two-way industrial investment cooperation and further expand fields of trade cooperation.
Guangdong has been a leading investment destination for the Fortune Global 500 Companies. As of December 2020, 350 Fortune 500 companies have invested in Guangdong province, with the accumulated registered capital exceeding USD 180.7 billion.
"Guangdong Province has many advantages in the industrial foundation, location, and business environment. I am full of confidence in Guangdong's development and sincerely recommend that the majority of entrepreneurs and colleagues consider investing in Guangdong," said Homme Tetsuro, Representative Vice President of Panasonic Corporation and CEO of Panasonic China & Northeast Asia Company.
Reporter: Nan
Editor: Wing, Jerry
