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Measures on incentives for attracting qualified investment in Ruzhou
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Updated: 2012-07-24

The measures are enacted in accordance with pertinent laws, regulations, and policies with the purpose of expanding opening up and boosting rapid scientific, economic and social development.

1. Application: These measures shall be applicable to investment enterprises, economic organizations and individuals who have industrial projects with business and tax registration in Ruzhou, and an investment surpassing 10 million yuan (excluding resource extraction and real estate business).

2. Project introduction: any units or individual can introduce investment, projects and advanced technologies. Any investor can have negotiations in Ruzhou on investment and cooperation. The municipal government and Ruzhou Commerce Bureau will help investors in negotiation, docking, and contract signing arrangements.

3. Project agency: the municipal administrative examination and approval center is responsible for helping investors with the approval procedures, and it is supposed to simplify the procedures and exempt the investors from some service charge. Within five working days all the procedures shall be completed.

4. Construction service: a municipal official coordinative responsibility system shall be applied for investment projects over 100 million yuan and with approval and registration completed. A headquarter shall be established to provide fixed personnel service for certain projects and solve the problems in construction in time.

5. Production protection: only tax, safety supervision, and environment departments have the right to check up on the investment enterprises and collect fees and fines. Approval from responsible municipal officials shall be required when any unit conducts business with investment enterprises. The enterprises have the right to turn away forced inspection and fee collection and report to the municipal government.

6. Land usage incentive: priority in build-up land usage shall be given to investment enterprises and public welfare establishments. Land shall be legally offered through bid invitations, auction, listing, and allocation. Preferential policies shall be made according to the projects’ economic benefits, social effects, investment scale, and applied advanced technologies. Investment enterprises with large investment scale and good social effects shall be rewarded in land usage if they need to build headquarters or R&D centers in the urban area.

7. Incentives on investment attraction: investment attraction units which bring one project of 100 million yuan or above shall be rewarded 500,000 yuan; two such projects, one million yuan. The maximum annual award is one million yuan. If the attracted projects are arranged with other units, the revenue, tax, and investment in the fixed assets shall be split 50-50 by the attraction unit and the reception unit.

8. Preferential fees: projects of 100 million yuan or above in industry cluster areas shall be exempted from local charges according to the scale of the investment. Industrial projects outside industry cluster areas shall be exempt from all administrative service fees within two years.

9. One case one meeting: besides the preferential policies above, certain investment projects can also enjoy more favorable policies through the method of one case one meeting. The projects include high-growth projects which can fill industry blanks, projects in accordance with national industrial policy invested by fortune global 500, domestic top 100, large SOE, and listed companies, projects important to the local economic and social development with the investment amount reaching $40 million or 300 million yuan.

10. Treatment: outside investors who make contributions to Ruzhou’s development shall be named an “honorary citizen” by the municipal government, and they shall enjoy privileged access to services such as employment, medical care, residence registration, children’s nursery and education. Those investors who serve as relatively strong driving forces to the economy shall also be granted certain political preferences and honorary appointments.

11. Award and punishment measures: rewards for foreign investment attraction (attracting powerful and top companies to invest); rewards for foreign investment enterprise legal representatives for increasing funding and expanding the share; rewards for attracting donations to public welfare establishments; rewards for making use of offshore capital and extra RMB. Units making mistakes in attracting investments shall be criticized publicly.

12. Registration and approval: (1) Individuals or organizations introducing foreign and domestic investments who apply for rewards are required to submit materials as follows: 1 Introducer’s application; 2 Capital verification report by Certificate Public Accountant entrusted by the Development and Reform Commission, and full fund certificate by Ruzhou’s People’s Bank of China; 3 The founding approval documents of the enterprise and tax certificate by tax department; 4 The verification document from investor for the introducer; 5 Foreign investor’s capital and share increasing reward application should submit materials 1-3. (2) Individuals or organizations introducing donation projects who apply for rewards are required to submit materials as follows: 1 Introducer’s application; 2 Bank account certification of free donation from outside Ruzhou; 3 The recipient’s donation certification and introducer verification; 4 The beneficiary certification from the recipient’s local government. (3) The municipal business department is responsible for collecting and verifying the materials and reporting it to the municipal government. After the application is approved, the municipal business department is responsible for giving pre-tax awards in cash to the applicant. (4) The reward for investment attraction is for individuals or organizations who introduce foreign investment or free donation projects, for foreign investment enterprise legal representatives increasing funding, and for units making important contributions to Ruzhou’s investment attraction by over-fulfilling goals set by the province and Ruzhou city. (5) At the beginning of introducing a project, the introducer shall submit written details about the attracted foreign investment and register with authorized certification from the investor. (6) The amount of the reward is decided by the amount of actual invested capital and the terms in the Guidance of Foreign-Invested Industries. (7) The rewards should be verified annually. (8) Defrauded reward shall be reclaimed, and people involved shall be investigated for legal responsibility.

13. Local investment enjoys equal preferential policies as outside investment.

14. Projects violating national policies, laws, and regulations and projects that fail to meet the requirements of the state's industrial policies and the standard of environmental protection cannot be introduced and cannot enjoy the policies above.

15. Privileges shall be canceled if projects are found to be not in accordance with the provisions of the contract in terms of design, construction, and development.

16. When international and domestic laws, regulations, and policies are adjusted, the newly amended ones prevail.

17. Issues not included shall be resolved through the method of “one case one meeting”. Preferential policies for primary industry, tertiary industry, and infrastructure projects shall be formulated separately.

18. Articles which contravene laws or regulations shall be null and void.

19. The municipal investment attraction office is responsible for the interpretation of these methods.

20. These methods take effect upon issuance and former ones are repealed.

 
 
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