Investment Incentives

Guangdong Investment Promotion Authorities and Incentives

Every region in China, including Guangdong, has government run investment promotion authorities that promote trade and foreign investment in that region. While the Ministry of Commerce of the People’s Republic of China (also known as MOFCOM) has authority for investment in greater China, it can be very helpful to reach out to similar agencies at the local and provincial levels as these organizations possess intimate local market knowledge. Many regional authorities will also offer additional incentives to foreign companies looking to invest in specific industries.

Important Note: Many incentives must be repaid at the provincial and/or city level in the event that the company leaves the region. National incentives are not typically subject to these restrictions.

Type Agency Name & Link
National Ministry of Commerce of the People’s Republic of China (MOFCOM)
Provincial People’s Government of Guangdong Province (Chinese only)
Municipal Bureau Of Foreign Trade And Economic Cooperation Of Guangzhou Municipality
Provincial Association for Promotion of Guangdong Economy and Investment
Municipal Dongguan Bureau of Foreign Trade and Economic Cooperation (Chinese only)
Guangdong Investment Incentives
Incentive Type Description
Enterprises Recruiting Recent Graduates State As an incentive to encourage companies to hire recent graduates from Guangdong’s universities, the provincial government offers subsidized social insurance policies and training programs for new hires, as well as merit subsidies for referral of recent graduates.
Establishing Headquarters/Regional Headquarters State The Guangdong Provincial Government offers significant subsidies for multi-national companies that establish “headquarters” or R&D facilities in Guangdong.
Establishing Cultural Facilities State The Guangdong Provincial Government offers fund-raising assistance, preferential land and real estate administration, environmental assistance, subsidized utilities rate, public security assistance, and other forms of assistance needed to reduce facility construction costs for enterprises that seek to establish cultural facilities.
R&D Enterprises State As an incentive to establish Equity or Contractual Joint Ventures in Guangdong (see Chinese incorporation types), the provincial government offers the convenient customs regulations, inspection exemption and quarantine expedited processes, simplified exit procedures for employed Chinese national personnel and entrance procedures for foreigners.
Sino-Foreign Joint Ventures State The management of the Tianjin Binhai New Area has developed a fund to assist enterprises that take on public infrastructure or eco-environment construction projects.
Tax Concessions for Foreign Enterprise State The provincial government offers several tax concessions for the following investment activities: Establishment of location in designated Special Economic Zones (SEZs) or provincial development areas, technology intensive projects, Joint-Venture projects engaged in harbor/port construction and expansion, establishment of financial institutions, projects engaged in agriculture, forestry or animal husbandry, export-oriented enterprises and transportation-oriented projects exceeding USD 30 million.
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