The Beijing government on Tuesday released new regulations aimed at attracting more multinational corporations to set up their regional headquarters in the capital.

The New Regulations on Encouraging Multinational Companies to Establish Regional Headquarters in Beijing will take the place of the old one of 1999, and its implementation rules on how these policies will come out next month.

This regulation applies to foreign multinational corporations and those from Hong Kong, Macau and Taiwan.

"The regulations will provide privileges and conveniences in taxation and foreign exchange management for foreign workers in China. This is to attract more multinational companies to invest in Beijing," said Chen Guangming, committee member of the Beijing Municipal Commission of Development and Reform.

According to the regulations, foreign multinational corporations with an accumulated registered capital of not less than US$10 million in China can establish regional headquarters in Beijing. The figure set by the regulation of 1999 was US$30 million.

It also allows regional headquarters in Beijing to expand their operational and business areas, hike imports and exports, expand distribution, and logistics within China.

The rules stipulate that regional headquarters registered or set up after January 1, 2009 in Beijing, with a registered capital more than 100 million yuan, will be given subsidies for three years.

Headquarters that have had annual sales revenue of more than 100 million yuan for the first time will receive an encouragement bonus.

The purpose is "to improve the functions of the regional headquarters, and at the same time, promote the development of finance, insurance, trade, accounting and legal system in Beijing," said Chen.

New rules on entry and exit have also been put out to improve the working and living conditions of foreign workers.

High-level managers and technicians can apply for a multiple-entry visa for less than five years; mid-level ones can apply for a multiple-entry visa for less than three years, and common workers for no more than one year. These three kinds of workers can apply for residential permits in Beijing for no more than 5, 4, or 3 years.

(China Daily May 27, 2009)