Beijing announces subsidies to attract multinationals

International companies that open regional headquarters in Beijing will receive a government subsidy of up to 10 million yuan (US$ 1.46 million) according to measures announced by the city government on June 29.

Companies with registered capital between 100 million yuan (US$ 14.6 million) and 500 million yuan (US$ 73 million) will receive 5 million yuan (US$ 731 thousand); those with registered capital between 500 million yuan and 1 billion yuan (US$ 146 million) will receive 8 million yuan (US$ 1.17 million); and companies with registered capital over 1 billion yuan will receive 10 million yuan. Existing companies who increase their registered capital will be eligible for the payments. The maximum subsidy payable is 10 million yuan.

Companies whose yearly operating income reach 1 billion yuan for the first time will receive a one-off award of 10 million yuan. CEOs of companies that rank among the top ten payers of enterprise income tax in Beijing will be eligible for a 500 thousand yuan (US$ 73 thousand) award from the government.

In addition to financial rewards, the government is also offering assistance with recruitment, visa applications, housing, and personnel relocation expenses. Senior executives will be offered permanent residence in Beijing regardless of age and education background. Senior foreign managers and technical staff will be eligible for multiple-entry visas and 5-year residence permits.

Beijing currently has 164 foreign investment companies serving as regional headquarters, mostly representing the world's Top 500 companies from Japan, U.S.A., Europe and Korea. They mainly engage in electronics, communications and engineering. Of them there are currently 41 officially-certified regional headquarters of multinationals.

Statistics show Beijing has received US$2.95 billion in foreign investment so far this year, nearly half of its 2009 target of US$ 6 billion, and 4.1 percent up over the same period last year.