Detailed Implementation Rules for Supporting and Promoting the Development of Headquarters Economy in the Guangzhou Nansha New Zone (Free Trade Zone)

Source: The Paper 澎湃新聞

On 14th September 2023, the “Nansha Headquarter Policy 2.0” exchange and promotion event was held at Nansha Kingboard Plaza in Guangzhou. Nearly 60 representatives from enterprises and industry associations gathered together to discuss the high-quality development of the headquarters economy. During the event, Wei Min, member of the Standing Committee of Nansha District Party committee and executive deputy district chief, announced the highlights of the “Detailed Implementation Rules for Supporting and Promoting the Development of Headquarters Economy in the Guangzhou Nansha New Zone (Free Trade Zone)” (referred to as “Headquarter Policy 2.0”). Representatives from the Development and Reform Bureau of Nansha District provided detailed information about the criteria and application details for the headquarters policy, while representatives from the Finance Bureau of Nansha District highlighted the key points of the 15% corporate income tax preferential policy.
Wei introduced that “Headquarter 2.0” is an optimised and upgraded version of the 2017 edition of the headquarters economic policy, tailored as an exclusive policy for headquarters enterprises. It covers eight major measures, including establishment, business development, industrial premises, fixed asset investment, upgrading capabilities, mergers and acquisitions, overseas investment, and government services.

“Headquarter 2.0” focuses on achieving "four improvements" to harness the power of the headquarters economy and create new advantages for high-quality development.

Firstly, the policy emphasises a higher level of support from the Nansha District. The reward criteria for the establishment of headquarters-type enterprises have been increased from a maximum of 20 million yuan in “Headquarter 1.0” to a maximum of 30 million yuan, attracting more high-quality enterprises and projects to settle in Nansha with a more open attitude. The subsidy for the purchase of office space has been raised to 2,000 yuan per square meter, and a new support of up to three years of rent exemption has been added.

Secondly, in addition to the existing business contribution award, which rewards up to 95% of the district-level economic contribution, new provisions have been introduced, including the equity exercise award, which rewards up to 80% of the individual's previous year's local economic contribution, a fixed asset investment award of up to 50 million yuan, a mergers and acquisitions award of up to 5 million yuan, and a one-time overseas investment award of 3 million yuan. These provisions encourage enterprises to expand investment and grow stronger.

Thirdly, the new policy supports the comprehensive needs of enterprise development. In terms of industrial premises subsidies, in addition to the office space purchase subsidy of up to 10 million yuan and the office space rental subsidy of up to 3 million yuan in “Headquarter 1.0”, a new subsidy for industrial plants and warehousing space rental of up to 3 million yuan has been added. In terms of upgrading capabilities, the top 500 Chinese manufacturing companies, top 500 Chinese service companies, and top 100 Chinese retailers have been included in the incentive scope. For companies that make their debut on the Fortune Global 500, Fortune 1000, Chinese Enterprise 500, Chinese Private Enterprise 500, Chinese Manufacturing Enterprise 500, Chinese Service Enterprise 500, and Chinese Retail 100, one-time rewards of 20 million yuan, 10 million yuan, 10 million yuan, 5 million yuan, 1 million yuan, 1 million yuan, and 500,000 yuan are respectively provided.

Fourthly, the new policy focuses on proactive government services. To help enterprises achieve rapid development and accelerate their growth, “Headquarter 2.0” allows qualified headquarters-type enterprises to independently or jointly apply for the construction of headquarters office buildings. Headquarters-type enterprise projects are included in the management of key construction projects in the district, providing services such as market expansion, scene docking, capital empowerment, and talent introduction. Convenient support is also provided in areas such as "Nansha Talent Card," talent housing, and transportation.

As of now, Nansha has gathered more than 110 headquarters enterprises, accelerating the formation of the "Heart of the Bay Area Headquarters (湾区总部之心.”In 2022, Nansha achieved a regional GDP of 225.3 billion yuan, a year-on-year increase of 4.2%, with industrial output value exceeding 380 billion yuan, a growth of 6.1%. The value-added of strategic emerging industries exceeded 83 billion yuan, a growth of 13.3%, accounting for 37% of the GDP. In the first half of this year, Nansha's GDP reached over 100 billion yuan, with new contracted and started projects totalling over 450 billion yuan in investment, including 17 projects with an investment or output value of over 10 billion yuan. The number of newly registered projects increased by 2.2 times, and more than 260 investment projects by Fortune Global 500 companies have been settled.

"For the overall development of the city, the significance of the headquarters economy is reflected in various aspects such as industrial upgrading, elevated status, consumption promotion, tax revenue growth, and job creation. For enterprises, the overall regional industrial upgrading brought about by the headquarters economy, as well as the clustering effect formed among different corporate headquarters, will also contribute to the development of companies within the cluster," said Wu Yuying, a partner at PricewaterhouseCoopers (PwC). She highly praised "Headquarter 2.0" and believes that it will play a promoting role in cultivating and attracting high-quality headquarters economic enterprises to settle in Nansha.

"As an enterprise with headquarter in Nansha, Oriental Yuhong has been enjoying the benefits of relevant policies, which have contributed to our rapid development with the support of Nansha," said Lu Gaoshan, General Manager of Oriental Yuhong, during the event. Lu emphasised that when headquarters enterprises choose a city, they are choosing a business environment. For them, the greatest charm and advantage of Nansha lies in the combined effect of policy advantages and a favourable business environment.
It is reported that the application channel for the identification and rewards of headquarters-type enterprises in Nansha District for the year 2023 was officially opened on August 30, 2023. Enterprises can log in to the Nansha District Enterprise Comprehensive Service Platform to access the policies and apply for rewards.

Disclaimer: This document has been translated into English.  If there is any inconsistency or ambiguity between the English version and the Chinese version, the Chinese version shall prevail. The full text of the measures, in Chinese, can be found below:

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