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REGIONAL HEADQUARTERS can be set up to coordinate and provide services to group companies in the region. Both inside and outside China. The benefits of regional headquarters depend upon which rules are used to set them up.

The purpose of regional headquarters is to attract multinational corporations to set up regional or global headquarters in China, and to boost the local economy.

NATIONAL REGIONAL HEADQUARTERS – What are the setup requirements?

  • paid-up registered capital of no less than USD 100 million, or of no less than USD 50 million and total assets of no less than RMB 3 billion and profits of no less than RMB 100 million in the financial year preceding the application.  
  • The national regional headquarter shall have invested at least USD 30 million in FIEs in China. And in at least one R&D center in China.  

BEIJING REGIONAL HEADQUARTERS – What are the setup requirements?

A foreign-invested investment company already established may apply directly for recognition as a Beijing regional headquarter upon approval.  

A foreign-invested management company may apply for recognition as a Beijing regional headquarter upon meeting the following requirements: 

  • The parent company’s total assets must be of no less than USD 400 million;
  • The parent company’s total paid-in registered capital in China must be of at least USD 10 million, and no less than three enterprises inside or outside China are invested or authorized to be managed by the parent company; OR no less than six enterprises inside or outside China are invested or authorized to be managed by the parent company;  
  • The management company paid-up registered capital must be of no less than USD 2 million; 
  • The Beijing regional headquarters must be the parent company’s sole highest operating management agency within China.  

SHANGHAI REGIONAL HEADQUARTERS – What are the setup requirements?

A foreign-invested investment company or management company may apply for recognition as a Shanghai regional headquarters.  

A Shanghai regional headquarter shall meet the following requirements:

  • The registered capital must be of no less than USD 2 million; 
  • The parent company’s total net assets must be of no less than USD 400 million. As for the regional headquarter engaging in the business of services, the parent company’s total net assets shall be of no less than USD 300 million;
  • The parent company’s total paid-in registered capital in China must be of at least USD 10 million, and the number of enterprises both inside and outside China which the regional headquarters is authorized by the parent company to manage shall be no less than three; OR the number of enterprises both inside and outside China which the regional headquarters is authorized by the parent company to manage shall be no less than six.  

-> This article may also be of interest to you : Arrangements in China : Investment Options

To know more, download our legal handbook related to foreign investment in China…

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