Foreign companies welcome in Shanghai

Following the promulgation of a regulation to encourage multinational corporations (MNCs) to establish their regional headquarters in Shanghai in July 2008, Shanghai's government issued a new implementation rule to the regulation on December 3 2008.

Under the Several Implementing Opinions on the «Shanghai Municipality, Provisions on Encouraging the Establishment of Regional Headquarters by Multinational Corporations» (上海市关于《上海市鼓励跨国公司设立地区总部的规定》若干实施意见)a headquarters of an MNC incorporated in or moved to Shanghai will be provided with a series of incentives, in respect of financing and rewards, fund and human resources management, streamlining of entry-exit formalities, facilitating of customs clearance, and so on. The first thing needing to be clarified is that the entity eligible to the incentives shall be a HQ of an MNC, which shall be subject to the approval and ratification of its qualification by the Ministry of Commerce or its competent local counterparts.