Shanghai government recently identified 94 companies as “trade based headquarter”, covering the local trading companies, import and export companies, international logistics companies, trading platform and type of enterprises covered by the state-owned enterprises, private enterprises and WOFEs.
"Trade based headquarter" is a new kind of headquarter which was set up by the local or foreign companies in Shanghai with the single or comprehensive trading function as procurement, distribution, marketing, settlement and logistics and etc. It covers the traditional trading companies as well as the platform of trade oriented enterprises.
"Trade based headquarter" has become a hot term for Shanghai economy in this period of innovation development and economic transformation and upgrading.
“Trade based headquarters” should be registered in Shanghai and as an independent legal entity. In addition, it should have two or more branches outside Shanghai and have a certain scale of business under its unified management. Further, it should meet one of the below requirements.
(a) if its main business is the domestic wholesale and retailing, such business revenue should be accounted for more than 50% of the total business turnover and the (sales) revenue in the last year is more than RMB 10 billion;
(b) if its main business is international trade, such business revenue should be accounted for more than 50% of the total business turnover and the (sales) revenue in the last year is more than RMB 6 billion;
(c) if its main business is international logistics or international trading services, such business revenue should be accounted for more than 50% of the total business turnover and the (sales) revenue in the last year is more than RMB 4 billion;
(d) if its main business is the platform for trading business, it should have more than 5000 members or companies registered, among which more than 30% are the companies out of Shanghai. Further, the consumer oriented platform have the annual turnover more than RMB 5 billion Or the company oriented platform (to provide inter enterprise transactions) platform have the annual turnover more than RMB 15 billion.
Dongjin comments: To achieve the target as make Shanghai as the international trading center in Year 2020, Shanghai government further open the trading market. Shanghai government also want to encourage the trading companies become a new force to stimulate Shanghai economy. If the company is identified as the “trade based headquarters”, it will also enjoy some favorable policies in trading, import and export as well as its talents.
If you have any questions, please send the email to me.
Ms. Jojo Hu
TEL: 0086-21-68868335 ext 324 / FAX: 0086-21-68868021