Measures for the Administration of the Verification of Enterprise Headquarters in Hainan Province
Article 1 The Measures have been formulated in accordance with the current situation in Hainan Province in order to carry out the spirit of The Working Opinions of the General Office of People’s Government of Hainan on Promoting the Development of the Headquarters Economy, to accelerate the development of the headquarters economy, and to standardize the verification and management of the enterprise headquarters in Hainan.
Article 2 The Hainan Joint Conference on Promoting the Development of the Headquarters Economy (hereinafter referred to as the Joint Conference) will be responsible for the guidance, management and supervision of the verification and management of the enterprise headquarters, as well as the decision-making on major issues in the process of verification. The Office of the Hainan Joint Conference on Promoting the Development of the Headquarters Economy (hereinafter referred to as the Office of Joint Conference) in the Hainan Provincial Department of Commerce undertakes routine tasks such as filing the materials of the verification of the enterprise headquarters.
Article 3 The enterprise headquarters referred to in The Measures include newly established enterprise headquarters and the existing ones. The newly settled enterprise headquarters are those established in Hainan as of Jan.1, 2018, while the existing enterprise headquarters are the ones established in Hainan before Jan. 1, 2018 which are still in operations.
Article 4 Requirements and Criteria for Verification
I. To apply for verification of regional headquarters, transnational corporations should satisfy all the following conditions:
1. The sole headquarters established in Hainan Province by a parent enterprise registered outside China to perform the functions of management and service for enterprises in more than one provincial, autonomous and special administrative region or municipality in China through investment and authorization.
2. Foreign-invested enterprises with independent legal personalities.
3. No less than USD 2 million in registered capital.
4. The parent enterprises’ general assets should be no less than USD 400 million, or USD 300 million for enterprises in the service sector with local headquarters.
5. Total registered capital invested by their parent enterprises in China should be no less than USD10 million and the number of enterprises in China and abroad authorized by their parent enterprises to manage should be no less than 3; or the number of enterprises in China and abroad authorized by their parent enterprises to manage exceeding 6.
II. To apply for the verification of integrated (regional) headquarters, the following conditions must be satisfied:
1. Enterprises registered in Hainan with independent legal personalities.
2. Industrial standards:
Primary industries like tropical agriculture with high efficiency: operating revenue of no less than RMB 500 million in the year prior to application or the year of application and contributing no less than RMB10 million to local financial resources.
Secondary industries like the high-tech industry: operating revenue of no less than RMB1.5 billion in the year prior to application or the year of application and contributing no less than RMB30 million to local financial resources.
Tertiary industries such as tourism, modern service industry, etc.: operating revenue of no less than RMB 1 billion in the previous year or the year of the application and contributing no less than RMB20 million to local financial resources.
3. The sole headquarters to perform the functions of management and service for enterprises in more than one provincial region in China through investment and authorization; or headquarters with one function or multiple functions such as procurement, sales, logistics, delivery, settlement and management, as well as research and development on the national or regional level.
Ⅲ. The following conditions must be satisfied in the application for a fast-developing headquarters:
1. The enterprise headquarters must be established in Hainan province and should possess independent legal entities.
2. The enterprise headquarters should contribute no less than RMB 8 million to local financial resources in the year prior to application or the year of application.
3. In possession of the intellectual property rights of the businesses’ core technology (either developed by the enterprise or authorized), R&D investment one year before application no lower than 5% of the operating revenue of the same year; or having brand-new business patterns, good performance, sustainable development, at least having been invested by Public Equity in Series C financing; or offering specialized social service like auditing, accounting, human resources, inspection and detection, authentication, etc., promoting the establishment of a legalized, international and convenient business environment in Hainan Province, enjoying a high profile worldwide.
4. Priority can be given to the companies or the investors that belong to the top 500 companies in the world, the top 500 Chinese companies, large central enterprises, and the top 500 Chinese private enterprises in verification. The top 500 companies in the world are referenced to Fortune magazine's ranking for the previous year; the Top 500 Chinese companies are referenced to the China Enterprise Confederation and China Enterprise Directors Association. Central large-scale enterprises are those included in the management of the State-owned Assets Supervision and Administration Commission of the State Council; the top 500 Chinese private enterprises are based on the All-China Federation of Industry and Commerce.
IV. To apply for the verification, the regional headquarters of international organizations (institutions) must satisfy the following conditions: the representative office of any foreign non-enterprise economic organization established in Hainan Province by a well-known international organization (institution) shall perform management and service functions authorized in China or a larger region, and its Chief Representative shall reside in Hainan.
The above four types of headquarters, which basically meet the above-mentioned conditions and have made outstanding contributions to the economic and social development of Hainan Province, may be verified according to actual circumstances.
Enterprise headquarters within Hainan Province that have changed their locations of registration since The Measures have come into existence shall not be included in the scope of provincial fiscal award and subsidy for headquarters in cities and counties. The provincial Department of Finance shall transfer the portion of local city or county finance contributed by enterprise headquarters from the city and county where enterprise headquarters move into the cities and counties where they move out. The real-estate enterprises shall not be included in the scope of verification of enterprise headquarters.
Article 5 Application Materials for Verification
Enterprises applying for the qualification verification of enterprise headquarters shall submit the following materials:
I. An application signed by the legal representative of the enterprise (including an introduction to basic information on the applicant enterprise, on the original form).
II. The application form for the verification of the enterprise headquarters in Hainan Province (original form).
III. Detailed materials submitted in accordance with the listed application materials (for details, see attached Table) of each type of enterprise headquarters.
Article 6 Procedures for Verification
The verification of enterprise headquarters shall be carried out in accordance with the following procedures:
I. Application. The applicant enterprise shall prepare the application materials (in triplicate, attached with electronic CD) according to the requirements of Article 5 of The Measures, and submit the application materials to the Department of Headquarters Economy of the registration city or county government.
II. Verification. After the Department of Headquarters Economy of the municipal (county) government presents audit comments, the enterprise headquarters shall be reported to the municipal or county government for implementing verification.
(三)备案。市(县)政府将认定意见和企业申请材料报联席办备案。联席办在10个工作日内完成备案并颁发海南省总部企业认定文件，对不符合条件的备案给予书面答复并说明理由。III. Filing of records. The municipal (county) government shall submit the verification opinions and application materials of enterprises to the Joint Office for the record. The Joint Office shall complete the filing within 10 working days and issue the verification documents of the Hainan Provincial Headquarters or give written replies on records that do not meet the conditions and explain the reasons.
Article 7 The recognized enterprise headquarters shall, with the relevant verification documents, apply to the municipal (county) government of the registered place to enjoy the support policies of the enterprise headquarters, and shall go to the relevant functional departments of provincial government service center to handle facilitation services.
Article 8 The Department of Headquarters Economy of the municipal (county) government shall review the verified enterprise headquarters annually and report the relevant review status to the Joint Office for the record.
Article 9 The qualifications of headquarters will be canceled, and the relevant preferential policies will be terminated if the enterprise headquarters meet any of these conditions:
I. The enterprise fails the review in accordance with the provision of Article 8;
II. The enterprise conceals the true situation or provides falsified materials to obtain verification.
III. Other serious violations of national laws and regulations.
Article 10 If an enterprise conceals the real situation or provides falsified materials to obtain verification, incentives and subsidies, it shall be ordered to return the incentives and income received, in addition to canceling the qualifications of the headquarters and terminating its preferential policies in accordance with the provision of Article 9. The enterprise will be listed in the “blacklist” of the provincial enterprise credit information-sharing platform and will be released to the public according to the law. Those involved in suspected crimes will be subject to the judicial authorities according to the law.
Article 11 The municipal (county) government is responsible for promoting headquarters economy, and for the formulation of specific operational procedures for the verification of the enterprise headquarters and for fulfilling the responsibilities of the enterprise headquarters for verification, review, and on site and post-event supervision. After handling the relevant violations in accordance with the provisions of Articles 9 and 10, the municipal (county) government shall report to the Joint Office for the record.
Article 12 The specific issues of The Measures shall be interpreted by the Joint Office.
Article 13 The Measures shall come into force on the date of promulgation.