（Issued by the Shanghai Municipal People's Government on， and effective as of， 20 July 2002.）

颁布日期：20020720 　实施日期：20020720 　颁布单位：上海市人民政府

Article 1　Purpose and Basis

These Provisions have been formulated in accordance with relevant laws and regulations and in the light of the actual circumstances of Shanghai Municipality in order to further open up to the outside world， encourage foreign multinational corporations to establish regional headquarters in Shanghai and promote economic development.

Article 2　Definitions

For the purposes of these Provisions， the term “regional headquarters of a foreign multinational corporation” means a foreign multinational corporation's only head office that， through investment or by authorization， exercises management and service functions for enterprises in a region consisting of more than one country and that is established in Shanghai.

Regional headquarters established in Shanghai by foreign multinational corporations may take such corporate forms as wholly-owned investment companies， wholly-owned management companies， etc.

Article 3　Scope of Application

These Provisions apply to regional headquarters of foreign multinational corporations （Regional Headquarters） established in Shanghai.

Article 4　Administrative Departments

The Shanghai Municipal Commission of Foreign Economic Relations and Trade （SMERT） is in charge of the recognition of Regional Headquarters established in Shanghai by foreign multinational corporations and the examination and approval of the establishment in Shanghai of Regional Headquarters by foreign multinational corporations. SMERT shall coordinate the associated administrative work of the relevant departments.

The departments for the administration of industry and commerce， finance， taxation， foreign affairs， public security， etc. shall also duly carry out the administrative work associated with Regional Headquarters within their respective spheres of responsibility.

Article 5　Conditions

The establishment of a Regional Headquarters in Shanghai shall satisfy the following conditions：

（1） the Regional Headquarters has independent legal person status；

（2） its parent company has total assets valued at not less than US$400 million；

（3） its parent company has invested in China an aggregate amount of not less than US$30 million； and

（4） the enterprises in China and abroad that the Regional Headquarters has invested in or been authorized to manage number not less than three and the Regional Headquarters has management and service functions in respect of such enterprises.

Foreign-invested investment companies that satisfy the provisions of the preceding paragraph hereof may apply for recognition as Regional Headquarters. If no investment company has been established， application may be made for the establishment of a Regional Headquarters in the form of a management company with a registered capital of not less than US$2 million.

Foreign multinational corporations that basically satisfy the provisions of the first paragraph hereof， meet the State provisions on the targeting of foreign investment and have made outstanding contributions to the economic development of the regions where they are located may apply to establish Regional Headquarters by making reference to these Provisions.

Article 6　Operational， Management and Service Activities

Regional Headquarters established in Shanghai may engage in the operational， management and service activities set forth below in accordance with laws， regulations and rules：

（1） making investment and operational decisions；

（2） marketing services；

（3） capital operations and financial management；

（4） technical support and research and development；

（5） information services；

（6） personnel training and management；

（7） other operational， management and service activities specified in laws， regulations and rules.

Article 7　Application Materials

To establish a Regional Headquarters in Shanghai， application shall be made to， and the following materials filed with， SMERT：

（1） an application signed by the legal representative of the parent company；

（2） a power of attorney for establishment of the Regional Headquarters and performance of basic functions signed by the legal representative of the parent company；

（3） a document in support of the creditworthiness of the parent company， （a photocopy of） its registration document and （a photocopy of） the document identifying its legal representative；

（4） （photocopies of） the approval certificates and business licences of the enterprises in China invested in by the parent company；

（5） a power of attorney for the proposed legal representative of the Regional Headquarters signed by the legal representative of the parent company and the résumé and relevant identification document of the proposed legal representative of the Regional Headquarters； and

（6） other materials specified in laws and regulations.

The originals of the documents specified in the preceding paragraph shall be submitted unless the submission of photocopies is specified.

Article 8　Decision on Approval or Disapproval

SMERT shall complete its examination and render its decision on whether to approve an application within 30 days after the date of receipt of the application and the other materials. If it decides to approve an application， it shall issue a recognition certificate or approval certificate.

Article 9　Record Filing

SMERT shall report the recognition and approval of Regional Headquarters to the Ministry of Foreign Trade and Economic Cooperation for the record in a timely manner.

Article 10　Business Registration and Annual Inspections

Within 30 days after a recognition certificate or approval certificate for a Regional Headquarters has been obtained， business registration shall be carried out with the municipal administration for industry and commerce.

Regional Headquarters shall submit themselves to annual inspections by the relevant competent departments in accordance with laws and regulations.

Article 11　Preferential Policies

Regional Headquarters with research and development functions established in Shanghai are eligible for treatment under the preferential policies available to high and new technology enterprises in accordance with provisions. Regional Headquarters registered in Pudong New Area are eligible for the preferential policies available in Pudong New Area in accordance with provisions.

Regional Headquarters that provide key skill training services to their staff and workers are eligible for subsidies in accordance with relevant provisions.

Article 12　Import-Export Business Rights， and Duty and Tax Refunds

Encouragement and support is given to the establishment of multinational procurement centres and logistics centres in Shanghai by Regional Headquarters. Subject to approval， multinational procurement centres and logistics centres may obtain import-export business rights and their exports will be eligible for treatment under duty and tax refund policies.

Article 13　Fund Management

Regional Headquarters that exercise investment management functions may establish centralized internal fund management systems to centrally manage their own funds. If foreign exchange capital operations are involved， such operations shall be carried out in accordance with relevant exchange control provisions.

Article 14　Simplification of Entry and Exit Procedures

Personnel with Chinese nationality of Regional Headquarters will be eligible for simplified exit procedures when required to travel to Hong Kong， Macao， Taiwan or abroad for business purposes.

Foreign personnel of Regional Headquarters who need to frequently enter China on a temporary basis may apply for one year to five year multiple entry visitor visas that permit stays of not more than one year per visit. Foreign personnel of Regional Headquarters who need to reside long term in Shanghai may apply for one year to five year foreigner's residence permits and multiple re-entry work visas valid for the same term. Foreign personnel who come to Shanghai on a temporary basis shall apply for entry visas at Chinese embassies or consulates； those who need to travel urgently may apply to the public security department for visas at the port of entry in accordance with relevant State provisions.

Article 15　Application by Reference

The establishment of Regional Headquarters in Shanghai by multinational corporations from Hong Kong， Macao and Taiwan shall be handled with reference to these Provisions.

Article 16　Administration of Matters Not Covered

Matters not covered herein shall be handled in accordance with the relevant provisions of laws， regulations and rules.

Article 17　Date of Implementation

These Provisions shall be implemented as of the date of issue.