Hechi rolls out incentives to lure businesses beyond city

The Hechi municipal government released a series of incentive policies on June 11, in a bid to attract businesses from outside the city to come and settle down and develop there.

The policies, which took effect on July 12, 2019, will last until Dec 31, 2024.

Supporting the development of a headquarters economy

1. Newly introduced headquarters enterprises can be given a grant for five years starting from the current tax year. They should have paid-up registered capital of no less than 30 million yuan ($4.26 million) and net assets of no less than 100 million yuan. They should have operating income in the previous year or in the current year generated in Hechi of no less than 200 million yuan and promises to operate in the city for no less than 10 years and not to reduce their registered capital within 10 years.

For the first three years, a grant equal to 50 percent of the company's actually paid added-value tax will be given to qualified headquarters enterprises. For the previous two years, the enterprises will be awarded 30 percent of the growing part of their added-value tax over the previous year.

2. Two to four enterprises in Hechi -- in the fields of cultural tourism, health care, construction, and modern services, as well as emerging and competitive traditional industries -- will be supported to develop into headquarters enterprises. Authorized enterprises can be given a grant for five years starting, from the authorized year.

For the first three years, a grant that is equal to 50 percent of the enterprise's paid added-value tax will be given to qualified headquarters enterprises. During the final two years, the enterprises will be awarded 30 percent of the growing part of their added-value tax over the previous year.

Attracting construction companies beyond the city

Newly registered construction companies will be given a grant for five years in proportion to their company income taxes paid in Hechi for projects undertaken from outside the city.

For the first two years, a grant that is equal to 50 percent of the company income tax will be given to construction enterprises. For the last three years, the companies will be awarded 80 percent of the growing part over the average company income taxes of the last two years.

Financial support policies

1. During the construction period of introduced companies, all kinds of administrative and institutional fees collected and used by the Hechi municipal government shall be exempted, or collected according to the minimum standard.

2. Enterprises that apply for an initial public offering (IPO) in the seven national-level impoverished countries of Hechi – Luocheng, Huanjiang, Donglan, Fengshan, Bama, Du'an and Dahua – can enjoy the "immediate examination after application, and instant IPO after approval" policies in line with the Opinions on Capital Market Serving the National Strategy of Poverty Alleviation paper issued by the China Securities Regulatory Commission in January 2018.

Enterprises from outside Hechi that move to and register in the city and are listed on the domestic or overseas equities market, can be granted subsidies according to the city’s relevant policies.

3. Commercial and trading companies included in the list of the governmental statistics department for the first time, and other for-profit services enterprises above the designated scale, will be awarded in accordance with the city’s relevant policies.

Construction companies, that are included in the list of the governmental statistics department for the first time and have an output value of more than 8 million yuan, can get a one-time reward of 50,000 yuan.

Supervision and inspection

1. Companies that have received the grants should keep their undertaking not to leave Hechi or reduce their registered capital within 10 years.

2. Enterprises that mislead in order to get grants will be required to return the funds. Their liability shall be pursued in accordance with the law.

This English version is only for reference. To learn more, please refer to the authoritative Chinese version on the official website of the Hechi municipal government.