Shanghai unveiled 50 preferential policies on August 30 2019 to support development of Lingang new area. The measures cover eight major areas including relaxed regional administrative authority, talents, fiscal and finance, land use, industrial development, housing, transportation and infrastructure.
Shanghai Dongjin find the below as the main points good for the foreign investors.
- Any future policies more supportive of enterprises and talent in the city will automatically apply to Lingang.
- The new area will set up a special development fund with a total investment of no less than 100 billion yuan in five year to support high-end talents and infrastructure in the area.
- For companies in the zone in key industries, such as integrated circuits, artificial intelligence, biomedicine and civil aviation, the business income tax rate will be 15 percent within five years of establishment.
- The area will develop innovative cross-border RMB businesses, deepen reform of foreign exchange management, improve financial services and strengthen monitoring of cross-border funds.
- Companies will be able to employ graduates from prestigious foreign universities with or without work experience. Talents who have resided in Shanghai for five years (three years for top talents) can apply for permanent residence permits. Non-local residents who pay individual income tax and social security for three years are entitled to buy a house in Lingang new area.
- Companies with multiple outlets or branches do not need to apply for separate licenses for each venue. What they need to do is to submit a certificate to prove the right to use a new site.
- The funds raised by overseas IPOs could be used for investment and business activities in the new area.
These 50 measures take effective during 1st September 2019 to 31st August 2023.
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Mr. Mike Chang
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