In order to further implement Shanghai Municipality's Provisional Regulations of Encouraging Multinational Companies to Establish Regional Headquarters, the detailed rules are worked out as follows:

Ⅰ.Examination and approval
1. Regional headquarters set up in the form of Investment Company
Foreign investors to set up headquarters in Shanghai municipality in the form of investment company, besides satisfying Article 5 listed in the provisional Regulations, shall present to the Municipal Trade and Economic Cooperation Commission an application and submit part of the materials required in Article 7 in the provisional Regulations as well as the following documents:

(1) Application letter signed by the legal representative of the investment company;
(2) Authorization document on the basic functions of the regional headquarters signed by the legal representative of parent company;
(3) Approval Certificate of the Investment Company, Legal business license, and certificate of capital credibility (all in duplicated copies);
(4) Approval Certificate and legal business license of the Chinese branches of the parent company or investment company (all in duplicated copies).

The Municipal Foreign Trade and Economic Cooperation Commission shall complete the examination within thirty workdays from the day the application letter is received. After the application is approved, a certificate of approval will be issued, meanwhile report is to be made to the Foreign Trade and Economic Cooperation Commission for record.

2. Regional headquarters to set up in the form of management company
Foreign multinational companies to set up their headquarters in the form of management companies shall, besides being in accordance with or generally being in accordance with all the requirements listed in Article 5 of the provisional Regulations, present to the Municipal Foreign Trade and Economic Cooperation Commission the following materials:

(1) Application letter for setting up a management company signed by the foreign investor, feasibility study report and constitution;
(2) Authorization letter about the basic functions of the regional headquarters signed by the foreign investor;
(3) A certificate of its capital credibility of the foreign investor, duplicated copies of the approval and registration certificates and IDs (duplicated copies) of the legal representative and representatives;
(4) The foreign investor's balance sheet of the most recent three years;
(5) Approval Certificate, business license, and capital credibility report of the companies invested by the foreign investor within the territory of China (all in duplicated copies);
(6) A letter of authorization of the legal representative-to-be of the management company (representative of the regional headquarters) appointed by foreign investor, resume and ID (duplicated copies) of the legal representative-to-be;
(7) Foreign investors using the RMB profit, which is gained from the investment enterprise in China as registered capital to the management company, shall provide relevant documents and duty paid certificate as the necessary data for examination and approval;
(8) Other documents deemed as necessary by the Municipal Foreign Economic and Trade Commission.

The above-mentioned documents are all required to be of the original copies, except those given clear indication. Any files not signed by the legal representative, shall go with authorization letters. In case the application formalities are entrusted to some legally founded intermediate agency, an authorization letter signed by legal representative of foreign investor shall also be presented.
Municipal Foreign Economic and Trade Commission shall complete the examination and approval in thirty workdays from the day all the materials required for the application of a management company is received. Approval certificate will be issued after the approval, and the company will be registered according to the rules of Industry and Commerce. Those satisfying the requirements of a regional headquarters shall be at the same time granted a cognizance certificate.

3. Termination of the regional headquarters
Municipal Foreign Trade and Economic Cooperation Commission are required to inspect the approved regional headquarters annually. The approval certificate shall be revoked, in case violations of regulations are found.

Ⅱ.The registration of Management Company
1.registration
The companies having submitted the applications shall go to register in the Municipal Foreign Trade and Economic Cooperation Commission within thirty days after receiving the Approval Certificate of companies invested by foreign investors. The materials to be submitted are listed as follows:
(1) Application form for establishment of companies invested by foreigners (The form is to be provided by Shanghai Administration of Industry and Commerce);
(2) Constitution together with its approval documents (duplicated copy) and a duplicated copy of Approval Certificate of companies invested by foreigners;
(3) Notice of pre-approval of foreign investment enterprise name;
(4) Appointive certification or letter of appointment for legal representative, and the members of the board of directors;
(5) Certificates of the locality and certificate of business site (In case the site is rented, the lease agreement together with the certificate of house property is required; in case the site is asset belongs to the company only the certificate of house property is required);
(6) Other documents and certificates deemed as necessary.
All the documents and certificates required in the above article can be spared in case they have been submitted in the name registration.

All the materials should be of the original copies, if there is no clear indication given. In case only duplicated copies can be submitted, the original copy shall also be provided for examination, along with stamped indication that the content of the duplicated copy and the original one are of the same.

After all the documents and certificates required are submitted, and were proved to be qualify to the requirements after examination, a business license will be issued within five workdays.

2. The registration of regional headquarters to be locate in Pudong New Area
The management company registered in Pudong New Area shall go to Administration of Industry and Commerce of Pudong New Area to register after having been approved by the the Trade and Economic Cooperation Commission as regional headquarters.

Ⅲ. Preferential Policies
The regional headquarters having been granted the cognizance certificate, when providing key skill training service to the employees, will obtain subsidy according to relevant rules.
The regional headquarters having been granted the cognizance certificate, in case its industry and commerce registration and tax registration are both made in bureaus located in Pudong New Area, may enjoy the preferential policies passed by the Pudong New Area. The preferentail policies mentioned above is to be enacted by the Pudong New Area , who is also to be responsible for its interpretation.

Ⅳ. Fund management
Encourage the commercial banks in Shanghai to actively provide such financial services as settlement, foreign exchanges needed by the multinational company's regional headquarters in accordance with the supervision requirements of the People's Bank of China. Regional headquarters, share held companies, and commercial banks may sign a three part contract, so that operations could be carried out via the basic settlement account service among the bank and its branches.

The commercial banks shall explore actively the intermediary business suitable for the regional headquarters in line with the Provisional Regulations Governing Commercial Banks' Intermediary Business issued by the People's Bank of China, and at the mean time, reinforce the administration and control of such businesses, as well as establishing corresponding information management system for supervision and report so as to reflect in time the performance and risk of the business correctly and comprehensively.
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Ⅴ.Entry and exit
1. Temporary entry
The aliens with the multinational companies' regional headquarters (hereinafter referred to as regional headquarters) located in Shanghai may apply for a multiple entry visiting Visa (one year validity), in case one is to have temporary visit to the country frequently.
Those advanced administrative staffs and High-Tech personnel of foreign nationals, when they need frequent entry and exit, may apply for multiple entry visiting visa valid up to two to five years with stay in China up to six months on each visit.

2. Long term residence
Aliens, who need to work and live for a long term in the regional headquarters, may apply for a one to two year valid residence permit for foreigners as well as a multiple re-entry employment visa with the same length of validity;
Advanced administrative staffs and High-Tech Personnel of foreign nationals, who need to work and stay for a long term in the regional headquarters, may apply for a three to five year valid residence permit for foreigners as well as a multiple re-entry employment visa with the same length of validity.

3. Entry under emergency
Those aliens coming for a temporary visit to Shanghai invited by the regional headquarters, but who have no time to apply for visas from the Chinese embassies or consular posts abroad due to emergency, can apply for a port visa at the Port Visa Agency of Division of Aliens Exit & Entry Administration Shanghai Public Security.( except those from countries which do not accept port visas).

4. Entry into Hong Kong and Macao
Employees of Chinese nationals with the regional headquarters may, in case they have to enter Hong Kong or Macao on business, apply for an Exit-Entry Permit to Hong Kong / Macao. (multiple entry).

5. Entry into Taiwan
Employees of Chinese nationals with the regional headquarters, in case they have to enter Taiwan on business, may enjoy priority in the transaction of Entry Permit to Taiwan, on condition that traveling documents to Taiwan and a paper singed by the State Council are supplied.
Go abroad

Employees of Chinese nationals with the regional headquarters, in case they need to travel overseas on business, may apply for visas in the city with Shanghai permanent residence booklet, ID card or a alternative set of temporary residence certificate and residence permit provided.

Key words: comprehensive, detailed rules, notice

　
Office of Shanghai Foreign Trade and Economic Cooperation Commission (2003) No.102, March 1, 2003