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Corporate Service - China

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Q&A Concerning Development Funds to Support Overseas Investment and Cooperation

Answer
Q: What are the requirements for companies applying for financial support?
A: The applicant enterprise needs to meet the following conditions:
Registered in Beijing in accordance with the law, has the status of an independent corporate legal person, and has obtained the Beijing Municipal Bureau of Commerce or the Beijing Municipal Bureau of Commerce reported to the Ministry of Commerce for approval (approval or record) to carry out foreign investment cooperation business in Beijing (for overseas fishery, if the cooperating enterprise is registered in a port city or port city in accordance with relevant national regulations, the place of registration may not be Beijing);
According to the Ministry of Commerce and the National Bureau of Statistics of the "Statistical System of Foreign Direct Investment", "Statistical System of Foreign Contracted Project Business" and "Statistic System of Foreign Labor Service Cooperation Business", report business statistics and project progress to the Beijing Municipal Bureau of Commerce on time;
Not supported by other funds of the same level of the same nature within the year.

Q:
Are there any requirements for projects that apply for funding support?
A:
First, it must be approved, registered or filed by the relevant department, and must be registered or filed in the country (region) where the project is located, and the project must take effect in accordance with the law. The specific items are as follows:
Overseas investment;
Foreign contracted projects;
Foreign labor service cooperation;
Overseas fishery cooperation.

Q:
What are the financial support methods?
A:
Loan interest subsidy;
Direct subsidies for overseas investment;
Direct subsidies for foreign contracted projects;
Direct subsidies for dispatched laborers;
Direct subsidy for the insurance premium for the return transportation of resources;
Direct subsidies for overseas investment insurance premiums;
Subsidies for the safety insurance expenses of Chinese personnel sent abroad;
The enterprise building a public service platform that supports Beijing's enterprises to "go global". The specific support methods and standards are subject to the confirmation assessment and annual assessment standards;
The promotion activities organized by the enterprises entrusted by the competent authority to promote Beijing enterprises to carry out foreign investment cooperation business shall be subsidized according to the actual expenses incurred in the promotion activities organized.

Q:
What is the limit for applying for loan interest subsidy?
A:
Loan interest subsidy used to support foreign investment and cooperation projects should not exceed 50% of the actual interest paid on the loan; each project can receive loan discount support for no more than 3 years, with an annual rate of no more than 5 million yuan.
The total amount of this special fund supported by the same applying enterprise in a year shall not exceed 10 million yuan.

Q:
What materials are needed to apply for loan interest subsidy?
A:
Application form for use of the special funds for foreign investment and cooperation;
Application report, including the basic situation of the project, the loan, the analysis of the project's expected income and the development prospects, etc.;
Photocopy of the business license of the applicant enterprise;
Copies of registration documents of overseas enterprises or institutions or copies of cooperation project contracts;
The statement of commitment and other materials.

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