I. Pilot areas and time in force

The Measures are piloted in the Zhongguancun National Independent Innovation Demonstration Zone, Tianzhu Comprehensive Bonded Zone, Sino-German International Cooperation Industrial Park, Daxing Airport Area of China (Hebei) Pilot Free Trade Zone, Sino-Japanese International Cooperation Industrial Park. The Measures took effect on June 1, 2020, and are valid for 3 years.

II. Main Contents

(I) The Measures only covers specific rights and interests of specific groups on specific matters, that is, foreign talents holding permanent residence ID cards (Foreigner's Permanent Residence Cards) shall enjoy the same treatment when establishing science and technology enterprises as domestic citizens.

(II) The science and technology enterprises referred to in the Measures are enterprises engaged in such industries as technology development, technology transfer, technical consultation, technical services, technical testing, as well as research and development, production, and operation of high-tech products (services) barring industries where special measures are stipulated for market access by China and Beijing Municipality.

(III) According to the Measures, administrative bodies in pilot areas shall earnestly fulfill their territorial responsibilities, compile and publish their respective guidelines for investment projects, and make all relevant efforts such as honoring the commitments made by the Measures and providing project guidelines. Besides, administrative bodies in pilot areas can, within their legal authority, provide fee reduction or exemption, land use quota guarantee, public services, and other facilitation policies for foreign talents holding permanent residence ID cards (Foreigner's Permanent Residence Cards) to establish science and technology enterprises. They shall treat all science and technology enterprises established by foreign talents who hold permanent residence ID cards (Foreigner's Permanent Residence Cards) the same as domestic-funded enterprises in accordance with the law and shall not set any discriminatory requirements.

(IV) The Measures clarifies that foreign talents can use their permanent residence ID cards (Foreigner's Permanent Residence Cards) as their means of identification to establish science and technology enterprises in the pilot areas. They shall receive the same treatment as Chinese citizens holding identity cards as their means of identification.

(V) The Measures also clarifies the regulations on establishment registration, enterprise types, and modification registration for scientific and technological enterprises established by foreign talents. For enterprises that meet the requirements of the investment guidelines in pilot areas, their applicants shall register at the local market regulation administration for establishment registration and business licensing. A variety of enterprise types can be registered, including sole proprietorship enterprises, partnerships, limited liability companies, or joint-stock companies. Foreign talents who have joined an established science and technology enterprise as new shareholders (partners) or whose enterprises have moved out of the pilot areas shall make a modification registration in time.

(VI) When applying for a business license, applicants must submit a Letter of Commitment to the local market regulation administration in accordance with the Implementation Opinions on the Registration and Notification of Commitment System for Market Entities in Beijing (Trial), in which they shall promise not to engage in business projects that require special measures stipulated by China and Beijing Municipality for market access.

(VII) Foreign talents holding permanent residence ID cards (Foreigner's Permanent Residence Cards) are encouraged to use their own intellectual property rights, proprietary technologies, and other non-monetary properties as the capital for establishing their science and technology enterprises.

(VIII) Foreign talents can use their permanent residence ID cards (Foreigner's Permanent Residence Cards) as valid identification to be enrolled for social insurance in China.

(IX) The Measures shall continue to deepen the reform of “streamlining administration and delegating power, strengthening supervision and optimizing services”. Relevant departments of each administrative agency in pilot areas shall enhance internal information sharing, and shall not require foreign talents to provide or submit information that can be obtained through interdepartmental information sharing.

(Source: Expert Office of the Beijing Municipal Science & Technology Commission)