This document is hereby issued to promote the high-quality development of the Changsha Economic and Technological Development Zone within the Hunan Pilot Free Trade Zone (hereinafter referred to as the “Park”), accelerate the establishment of an international advanced manufacturing headquarters economy center, foster enterprise clusters with core competitiveness, and strengthen the role of the headquarters economy in supporting the Park’s leading industries.
I. Development Goals
In 2021, the Park will launch the identification and incentive programs for headquarters-type buildings and market entities, and establish a directory of headquarters enterprises. Through three years of dedicated efforts, the policy framework and industrial system for headquarters economy development will be further refined, with the contribution of the headquarters economy to the local economy exceeding 15%, thereby forming a development pattern characterized by significant agglomeration benefits and distinct features.
II. Industrial Focus
Centered on the “Two Pioneers” objectives, the Park’s Headquarters Economy Center will focus on industries such as construction machinery and advanced rail transit equipment, automobiles and auto parts, electronics and information technology, the digital economy, and biotechnology and life sciences. It will attract related supporting enterprises to build a new framework for integrated industrial development.
III. Key Priorities
Priority support will be given to various market entities whose business registration, actual operations, and tax registration are all located within headquarters-type buildings recognized by the Changsha Economic and Technological Development Zone.
(1) Attract a group of comprehensive headquarters.The focus will be on companies listed in the Fortune Global 500, China’s Top 500 Enterprises, China’s Top 500 Private Enterprises, and China’s Top 100 Industry Leaders, as well as foreign-invested enterprises, central state-owned enterprises, and unicorn companies. Support will be provided for these entities to establish national, regional, or secondary headquarters within the park. Additionally, support will be extended to leading enterprises ranked among the top 50 in their respective international niche industries, as well as companies listed on overseas securities exchanges or on domestic main boards, SME boards, Growth Enterprise Market (GEM), or Science and Technology Innovation Board (STAR Market) (excluding subsidiaries and branches).Annual operating revenue (sales revenue) within the park must exceed RMB 500 million (inclusive) and annual tax contributions must exceed RMB 20 million (inclusive). This includes, but is not limited to, global headquarters, Asia-Pacific headquarters, Asia headquarters, Greater China headquarters, China headquarters, and regional headquarters.
(2) Cultivate a group of functional headquarters. Enterprises authorized by their parent company (group) to undertake multiple headquarters functions—including management and decision-making for regional branches within the group, financial management, R&D and design, procurement and sales settlement, operations management, human resources, certification and testing, and logistics distribution—and that demonstrate strong growth potential.Annual operating revenue (sales revenue) within the park must exceed 200 million RMB (inclusive) and annual tax contribution must exceed 8 million RMB (inclusive). This includes, but is not limited to, R&D headquarters, testing headquarters, logistics headquarters, sales headquarters, financial management centers, procurement centers, settlement centers, and investment and financing centers.
(3) Attract a group of growth-oriented enterprises. Focusing on the park’s leading industries and leveraging the park’s headquarters-style buildings, attract a new batch of growth-oriented enterprises to establish operations. Tax contributions within the park for the current year must exceed RMB 200,000 (inclusive) or the number of employees enrolled in social insurance in Changsha for six consecutive months during the current year must exceed 10 (inclusive).
IV. Support Policies
(I) Settlement Incentives
1. Enterprise Settlement Support. Newly introduced enterprises in the following three categories—the Fortune Global 500, China’s Top 100, and the Top 50 in international niche sectors—as well as domestic and international main board-listed companies, upon certification, will receive a one-time reward of up to 50 million RMB, equivalent to 3.5% of the enterprise’s paid-in registered capital for the current year;Newly introduced unicorn enterprises, as well as companies listed on the SME Board, Growth Enterprise Market (GEM), or Science and Technology Innovation Board (STAR Market), shall, upon verification, receive a one-time reward of up to 20 million yuan, calculated at 3% of the enterprise’s paid-in registered capital for the current year;Newly introduced functional headquarters, upon certification, will receive a one-time reward of up to 10 million yuan, calculated at 2.5% of the enterprise’s paid-in registered capital for the current year; newly introduced growth-oriented enterprises, upon certification, will receive a one-time reward of up to 1 million yuan, calculated at 2% of the enterprise’s paid-in registered capital for the current year.
2. Business Premises Support. For certified headquarters-type market entities that lease business premises in headquarters-type buildings, a 100% rent subsidy based on the actual leased area and price will be provided annually for the first three years starting from the year of certification; for the fourth and fifth years starting from the year of certification, a 50% rent subsidy based on the actual leased area and price will be provided annually.The rental area eligible for subsidies for each enterprise shall not exceed 5,000 square meters, and the subsidy amount shall not exceed the taxes paid by the enterprise in the local jurisdiction for that fiscal year.
Certified comprehensive headquarters, functional headquarters, and growth-oriented enterprises that purchase production and business premises in headquarters-type buildings shall be granted a one-time purchase subsidy at rates of 1,000 yuan/square meter, 800 yuan/square meter, and 600 yuan/square meter, respectively. The purchase subsidy for each enterprise shall not exceed the total tax paid by the enterprise in the local jurisdiction over two consecutive years, with a maximum cap of 10 million yuan.
The same enterprise may not simultaneously receive both the rent subsidy and the property purchase subsidy.For self-used business premises receiving purchase subsidies, the property may not be leased, sold, or have its use altered within 10 years of purchase; for business premises receiving rent subsidies, the property may not be leased to third parties or have its use altered during the subsidy period. Any enterprise that leases out, subleases, sells, or alters the use of the property within the specified timeframe must return all business premises subsidy funds received. For enterprises that lease before purchasing, any rent subsidies already received must be deducted when claiming the purchase subsidy.
Platform Support. We will develop a group of headquarters-style buildings characterized by high planning and construction standards, strong industrial clustering capabilities, and comprehensive supporting services. We will designate and certify a batch of exemplary headquarters-style buildings to foster an optimized layout and a prominent contribution to the building economy.Support building operators in conducting brokerage and agency-based tenant recruitment. For comprehensive headquarters or functional headquarters independently introduced by headquarters-type building operators, a one-time brokerage incentive of 600,000 yuan and 500,000 yuan per entity, respectively, will be granted to the building operator.
(2) Operational Incentives
1. Enterprise Support. Recognized headquarters-type market entities will receive a reward equivalent to 40% of the district-level tax revenue retained by the district, for three consecutive years starting from the year of recognition.
2. Platform Support. For headquarters-type building operators officially recognized by the park, a reward of 5% of the district-level tax revenue retained from the headquarters-type market entities they independently attract will be granted for three consecutive years starting from the year of recognition.
V. Supplementary Provisions
1. Data regarding operating revenue (sales revenue), tax contributions, and the number of months of social insurance contributions shall be calculated starting from September 21, 2020.
2. The recognition of headquarters-type buildings and headquarters-type market entities shall adhere to the principles of “openness, fairness, and impartiality,” following a process of enterprise application, departmental review, public announcement, and dynamic management. Annual re-evaluation and dynamic management shall be conducted for recognized headquarters-type buildings and market entities; policy benefits shall be revoked for those that no longer meet the criteria.
3. Where the entities covered by this document are eligible for other policy provisions of the Changsha Economic and Technological Development Zone regarding the same matter, the principle of “applying the higher standard and avoiding duplication of rewards and subsidies” shall apply.
4. Headquarters-type market entities that have received awards or subsidies may not relocate their registered business or tax addresses outside the park within six years of moving in; otherwise, they must return the full amount of subsidies and awards received.
5. Headquarters-based market entities that have already benefited from the Changsha Economic and Technological Development Zone’s “case-by-case” preferential policies shall, in principle, no longer be eligible for the support policies outlined in this document.
6. The Investment Promotion and Cooperation Bureau of the Changsha Economic and Technological Development Zone Administrative Committee is responsible for supervising and managing the use of funds, the degree of goal achievement, and the efficiency of fund utilization. After project funds are disbursed, the Finance Bureau of the Changsha Economic and Technological Development Zone Administrative Committee shall organize an annual performance evaluation of the previous year’s project fund usage, provide review opinions, and use these as an important basis for future allocation of special funds.
7. The Investment Promotion and Cooperation Bureau of the Changsha Economic and Technological Development Zone Administrative Committee is responsible for the specific interpretation of this document.
8. This document shall take effect from the date of issuance and shall be implemented retroactively to the date of approval of the Hunan Pilot Free Trade Zone (September 21, 2020).
