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The Zhongshan Bureau of Commerce is recently soliciting public opinions for the "Zhongshan Implementation Rules on Business Development Special Funds (Promoting Use of Foreign Capital).

According to the Implementation Rules, foreign-invested enterprises and Hong Kong-, Macao- and Taiwan-invested enterprises with an independent legal status in Zhongshan City (excluding real estate, financial and quasi-financial projects) are eligible for financial incentives. Enterprises in Zhongshan's key sectors are given priority to the rewards.

The Implementation Rules specify that from January 1, 2022 to December 31, 2024, calculated on an annual basis, foreign-invested enterprises with a paid-in registered capital of US$5 million or more (monetary contribution only) will be rewarded. For enterprises with a paid-in registered capital of US$20 million or more, a reward equivalent to 2% of the annual paid-in amount will be offered, and the maximum reward will be 20 million yuan.

According to the Implementation Rules, the paid-in capital must be invested in projects built or operated by an enterprise in Zhongshan within one year after it is available. Foreign-invested enterprises may not move out of Zhongshan, reduce their registered capital, or turn into domestic-funded enterprises within 5 years after receiving the reward and must fulfill their commitments.

In 2021, there were 522 new foreign-invested enterprises in Zhongshan, with 3.773 billion yuan of foreign investment in actual use, ranking sixth in Guangdong Province.