I. Background Information of Hengqin, Zhuhai:-
On 16 December 16 2009, it is formally established Hengqin district with the implementation of a special economic zones policy, its development started. Currently, it set up a town on the island with three(3) community committees, under the jurisdiction of 11 villages. The new district was the first one to establish, the island has a resident population of 7000 people, including the resident population of 4203 people. Hengqin has the main theme of cooperation, innovation and service. It plays an important role as Hengqin located in Guangdong, Hong Kong which combines the advantages of the Ministry to promote close cooperation with Hong Kong and Macau, the integration of development, and it gradually becomes a focal point of building Hengqin Pearl River Delta, Hong Kong and Macau services, pioneered the development of Guangdong, Hong Kong.
II. Zhuhai Hengqin - Investment Environment:-
Hengqin has an international business environment: Hengqin adheres to institutional innovation, create international, legal business environment. Enacted with the nation's first commercial registration with convergence of Hong Kong and Macau management approach; it has established the country's first integrated functions of punishment and prevention of corruption new institution - Hengqin Independent Office; the first implementation of leading cadres of family property declaration system of notification. It creates an efficient and transparent system of government services, the opening of "Livelihood One" establishment policies with Macau Hengqin docking, the train project cooperation mechanisms; legal expert group set up with Hong Kong and Macau. After Hong Kong and Macau, Hengqin is the new area that involves contracts or property rights disputes over written agreements for parties of Hong Kong and Macau, choosing Hong Kong or Macau’s arbitration institution for arbitration.
III. Hengqin Investment Policy:
A. Tax Policy :
- 1) To meet the requirement of the enterprises, it reduce 15% enterprise income tax rate;
- 2) For those who come from outside to Henjjin and engage in the production related goods, implement record management will be granted for an exemption or bonded;
- 3) In Mainland, those product-related goods which sold in Hengqin are deemed as exports, according to the provisions of tax rebate ;
- 4) New businesses in Hengqin region inter trading of goods are exempted from VAT and consumption tax ;
- 5) For those residents who come from Hong Kong and Macau and work in Hengqin, they can enjoy the same personal income tax. Difference between taxes are fully subsidized.
B) Monetary Policy -:
- 1) Encouraging financial services, access to financial institutions, financial markets, financial products and other aspects of innovation, expanding to encourage cross-markets, financial products and other aspects of innovation, and expand financing channels, to carry out exploration capital account convertibility in Henggin which act as the first point for trial.
- 2) Allowing the region's financial institutions to provide foreign currency for offshore business; preparation or introduction of trusts, issue multicurrency Industry Investment Fund, and to carry out multi-currency Land Trust Fund as pilot.
- 3) Encouraging the establishment and promotion of intellectual property rights, usufruct, the right to charge, pledge of accounts receivable, financing, lease financing to develop.
- 4) Encouraging all kinds of trading platforms, financial institutions gathered in Hengqin; vigorously promote non-cash payment instruments, in particular, electronic payments work tools.
- 5) Support the implementation of individual foreign exchange franchise that pilot to explore and conduct personal Renminbi under the MOP, and HKD in certain within the line of two-way exchange pilot.
- 6) Encouraging financial institutions to Hong Kong and Macau to strengthen cooperation in the construction of financial background service base; explore more funds between Hong Kong and Macau, freedom of movement.
- 7) This section deals with financial institutions and business access, currency transactions and foreign exchange markets and regulatory aspects of examination and approval authority delegated in Zhuhai City, the relevant financial regulatory authorities.
- 8) For Macau banks set up branches in the region or legal entities, the total assets for access threshold requirement has been reduced to $ 4 billion.
C) Industry and Information Policy:
- 1) Support Hengqin for a comprehensive reform with pilot area of modern service industry.
- 2) Support Hengqin which has national service outsourcing model policies.
- 3) Hengqin is free and approve foreign investment in training institutions. Active support educational institutions in Mainland and Hong Kong, Macau and Taiwan regions, with foreign educational institutions. Hengqin encourage foreign cooperations in running schools, it includes the establishment of vocational training institution or organization of vocational skills training programs.
- 4) Support the development of Guangdong-Macau Cooperation industrial park, to encourage innovative research in medicine, authorizes and allows the pilot, Guangdong Province Drug Administration Mechanism reform measures.
- 5) Macau telecom operators with telecommunications operators in Mainland that are encouraged to establish joint ventures in Henggin with basic telecommunications services and value-added telecommunications Business.
- 6) To encourage innovation in the telecommunications industry, its operation and management mode, explore the development of a more favorable tariff plan.
- 7) The headquarters of economic policy.
1) Regional headquarters of multinational investment: It meets the pinpoint of the Ministry of Commerce, "On foreign investment in the provisions of Investment Companies" , it can apply directly for headquarters identification.
2) Management of multinational regional headquarters: a) a total assets of the parent company is not less than $ 400,000,000 ; b) the parent company has been in the Chinese territory. The investment paid for the cumulative total registered capital should be at least $ 10 million and the parent authorization management must be in China with at least two foreign companies.
3) Large domestic corporate headquarters:- a) The parent company’s total assets is not less than RMB 2.5 billion ; b) In the country or within the investment management area, owns or authorized to manage companies for not less than three of which at least one is a cross-city or inter-provincial enterprises; c) With an annual sales of more than RMB 100 million and in the area of local tax retained for not less than RMB 500 million.
4) Growth headquarters: a) An annual local tax local retained for more than RMB 500,000; b) In principle, it does not occupy Hengqin’s land and resources; c) In principle, it does not occupy areas of public resources and management of specific projects.
E) The Financial Incentives:-
- 1) To contribute to the headquarters for companies to give a certain percentage of reward.
- 2) For those corporate headquarters’ senior management, to give a certain percentage of reward.
- 3) For purchase or lease of corporate headquarters office space in the new district, Hengqin gives a certain percentage of the subsidies.
E) Government Services:-
For those enterprises with headquarters in Hengqin, it provides full assistance services, and in immigration matters, the two plates are issued, priority households and talents, their children to school and other aspects of the implementation priority tilt services.