Shanghai introduces new measu res to achieve goal of science and innovative hub

GENERAL GOALS:

By 2020

Build up a framework structure for a technology i nnovation center.

By 2030

For man innovation- driven modern development pattern in line with the characteristics of Shanghai and China.

Ultimate goal

Become a world- class technology innovation center.

FOR COMPA NIES Simpler administrative approval procedures

• Simplify approval requirements on investment, innovative startups, production and operation, high- technology services.

• City- level departments, district and county- level governments must abolish thei r privately established administrative approval requirements.

• Startups are allowed to change shareholders voluntarily in compliance with regulations. The Administration for I ndustry and Commerce will register the change without investigation.

Wider room for operation

• Ease entry restrictions for Internetrelated fields and improve reg ulations over finance, health care and education companies that have incorporated with Internet firms. Encourage cross- industry development.

• Ease rules for company registration by allowing congregated registration and multi- registrations i n one address. Larger market for new- energy cars

• New- energ y cars and vehicles will become preferred option for busi ness and public transport.

• Encourage households to purchase and use new- energy cars. More preferential tax policies

• More ta x deduction for research and development spending.

• Implement state preferential tax policies for innovative investment activities on incubating and startup companies.

• Implement changes by the state on conditions for venture capital investment in high- technology firms, and allow partners of partnerships to deduct tax after investment.

• Technology companies that are considered high technology according to a state standard will pay company i ncome tax at a 15 percent preferential rate.

Easier listing for technology and innovative companies

• Accelerate the setting up of a “strategic emerging board” on the Shanghai Stock Exchange for non- profitable companies of a certain size to go public.

FOR SCIENCE & RE-SEARCH INSTITUTIONS

• Set up a modern management system for different kinds of scientific research i nstitutions.

• Scientific research institutions will have more options to manage and oversee their scientific research projects and tasks for the institutions as well as for individual personnel. They will also be encouraged to study a labor value distribution mechanism.

• Cutting- edge scientific research institutions shall develop a multiple revenue channel operation mode, including government subsidy, research projects or works, and technology service fees.

FOR TALENTS

For innovative talents

• Team members from high schools and research i nstitutes should get not less than 70 percent of the total i ncome made from their scientific achievements. The i ncome should not be i ncluded as part of monthly wages based on performance.

• When researchers from high- tech companies and small tech firms get shares as reward as part of income made from their scientific achievements, they could choose to pay their personal income tax by installments within five years. The preferential policy of deferred payment in tax is expected to be upgraded in the future.

More channels for foreign talents to develop career

• Procedures of getting residence certificate, talent visa and foreign expert certificate for high- level overseas talents would be simplified.

• Long- term high- level overseas talents based in Shanghai could be priority for Foreign Experts Certificate of two to five- year term.

• Launch a pilot scheme for overseas students to obtain employment in Shanghai after graduation.

• I mprove the system of issuing Foreign Talent Residence Per mits of Shanghai, lower the application barrier for innovative ta lents, and extend the validity up to 10 years.

Improved policy to attract domestic talents

• Founders or those in the core management team of innovative startups can automatically accumulate 120 points, the minimum threshold required to apply for Shanghai’s residency permit under the current residence evaluation system.

• Those who run a start up company or an investment management company, technical experts or employees in the technology in novat ion service sector will be able to upgrade their residence permits to permanent residence permits in two to five years compared with seven years under normal circumstances.

• Shanghai permanent residence permits will be granted to entrepreneurs in startups who have secured a certain amount of vent ure capital i nvestment, members of the management team whose startups have achieved outstanding market performance, science and technology experts at companies with a certain amount of market capitalization, as well as employees with the core management team of innovative intermediary service companies with excellent performance.

A more flexible two- way transfer mechanism between colleges and corporations for scientific research personnel

• Scientific research personnel working for colleges or scientific research institutions can undertake part- time jobs at technology startups.

• Those who leave their old positions to start their own business shall keep their technical specialty positions if they return to their original working place within three to five years of leaving.

• Regulations over college students’ startups will be drawn up, and students will be encouraged to suspend their schooling to start their own business. Those who run their startups can also accumulate their credit for their practical education courses.