To all committees, offices, bureaus, sub-district offices and relevant parties of the district government:
Upon deliberation and approval at the 100th Special Meeting of the Xicheng District People's Government, the latest Measures for the Recognition and Support of Incubation and Acceleration Platforms for Technology Enterprises in Xicheng District, Beijing (Revised) are hereby issued to you, for strict compliance.
Beijing Xicheng District People's Government
October 18, 2019
(This document has been released to the public.)
Measures for Recognition and Support of Incubation and Acceleration Platforms for Technology Enterprises in Xicheng District, Beijing (Revised)
Chapter I General Provisions
Article 1 These Measures have been formulated in order to improve the service system for science and technology innovation in Zhongguancun Science Park's Xicheng Park (hereinafter referred to as "Xicheng Park"), enhance the capacity of services supporting independent innovation, and establish an urban science and technology park with the characteristics of a capital city, in accordance with the Measures for the Administration of Technology Enterprise Incubators (GKFQ [2018] No. 300) , Measures for the Classification and Evaluation of Zhongguancun Startup Incubators (Trial) (ZKYF [2019] No. 18) and the Zhongguancun "1 + 4" policy system, taking into account the actual situation prevailing in Xicheng District, following the amendment of 2016's original Measures for the Recognition and Support of Incubation and Acceleration Platforms for Technology Enterprises in Xicheng District, Beijing.
Article 2 The "Incubation and Acceleration Platforms for Technology Enterprises in Xicheng District" mentioned in the Measures include: "Xicheng District Hi-tech Industrial Incubation and Acceleration Bases" (hereinafter referred to as "Xicheng Incubation & Acceleration Bases"), recognized by both Zhongguancun Science Park's Xicheng Park Management Committee (hereinafter referred to as the "Xicheng Park Management Committee") and the relevant departments, and "Xicheng District Innovation Incubation Platforms" (hereinafter referred to as "Xicheng Incubation Platforms") jointly recognized by the Ministry of Science and Technology, Beijing Municipal Science & Technology Commission, and the Zhongguancun Science Park Management Committee and registered at Xicheng Park Management Committee.
Article 3 These Measures shall be interpreted and implemented by Xicheng Park Management Committee, which will undertake the following main responsibilities:
(I) Organizing relevant departments to recognize Xicheng Incubation & Acceleration Bases;
(II) Accepting applications for the registration of Xicheng Incubation Platforms;
(III) Providing guidance, services, and assessment to Xicheng Incubation & Acceleration Bases for technology enterprises;
(IV) Implementing government policies in accordance with these Measures with regard to Xicheng Incubation & Acceleration Bases;
(V) Any other relevant responsibilities assigned by the Xicheng District Government.
Chapter II Conditions for Application
Article 4 The following conditions shall be fulfilled for applying to become a Xicheng Incubation & Acceleration Base:
(I) Renting out buildings at a preferential price, lower than the rent of surrounding buildings of the same grade, and cultivating high-tech, cultural, and creative enterprises or organizations at their initial and growth stages.
(II) Registration and operation within the area covered by the policies of Xicheng Park, together with tax registration within the Xicheng District jurisdiction; qualification as an independent enterprise legal person, with independent operations and accounting; registered, paid-up capital of at least RMB 1 million, having been in operation for over 1 year (inclusive).
(III) Possession of premises with relatively concentrated proprietary or related property rights and a building area exceeding 5,000 square meters (inclusive), including public meeting rooms, reception and negotiation rooms, activity and showroom spaces, business service platforms, science & technological platforms, network service platforms, Party and group activity platforms, recreation areas, parking spaces and other spaces and platforms supporting non-profit services, with a building area not less than 500 square meters (excluding office areas and parking areas for use of the incubation acceleration base itself). Supporting facilities for Internet resources such as broadband access must be provided.
(IV) Over 20 enterprises registered to pay tax in Xicheng Park located in the Base, accounting for more than 95% (inclusive) of the total number of enterprises operating there; operating enterprises engaged in science and technological innovation, integration of culture, science and technology, integration of finance, science and technology, and high-tech services account for more than 90% (inclusive) of the total number of enterprises in the Base, the rental area accounts for more than 80% (inclusive) of the total incubation area, and 10 or more Zhongguancun hi-tech enterprises have valid IPR.
(V) A sound operational management system, covering evaluation, screening and exit mechanisms for the incubated enterprises, basic databases for incubated enterprises, enterprise tracking service mechanisms, etc. has been established in the Base. The Base retains professional incubation service personnel and entrepreneurship tutors, trained in innovation and entrepreneurship or with experience in entrepreneurship, investment, financing and enterprise management; five or more professional incubation service employees, and at least 80% (inclusive) of the institution's total staff, are college degree-educated or above; training, industry quality courses, exchange and investigation, incentives and other plans for Base management and incubation personnel are prepared and implemented each year.
(VI) Bases provide enterprises with professional property, networking and other basic services as well as value-added services, offer guidance on application for hi-tech enterprise, entrepreneurship mentoring, project application guidance, policy interpretation, sports and leisure activities, possess service capability and mechanisms for information consultation, training guidance, certification testing, project promotion, market development, investment and financial matchmaking, international cooperation, Party Caucus Labor Union and United Front work; and there exist successful cases of tenant enterprises obtaining financing through the incubation services. The Incubation & Acceleration Base provides professional science and technology incubation services no less than 20 times per year.
Article 5 Any incubator that has been recognized as a national or Beijing municipal science and technology incubator, and awarded the title of national or municipal university science and technology park, may be directly registered as a Xicheng Incubation & Acceleration Base.
Article 6 The following conditions shall be fulfilled for registration as a Xicheng Incubation Platform:
(I) Registration and operation within the area covered by the policies of Xicheng Park, together with tax registration within the Xicheng District jurisdiction; qualification as an independent enterprise legal person, with independent operations and accounting; registered, paid-up capital of at least RMB 1 million, having been in operation for over 1 year (inclusive).
(II) The actual building area covered by the Xicheng Park policy is not less than 800 square meters, and the public service space has an area of not less than 200 square meters.
(III) The main businesses of teams and enterprises cultivated by the incubation platform are in line with the industrial positioning of Xicheng Park; the number of tenant enterprises registered and paying taxes in Xicheng District is not less than 5, and accounts for at least 60% of total tenant enterprises; and this includes at least 2 enterprises which have been recognized as Zhongguancun hi-tech enterprises.
Chapter III Establishment and Use of Special Fund
Article 7 According to Several Provisions of Beijing Xicheng District on Supporting Independent Innovation in Zhongguancun Science Park's Xicheng Park, the development of Xicheng Incubation & Acceleration Bases shall be supported, and a single base shall be awarded subsidies of up to RMB 8 million in total per year.
(I) Subsidies for the construction of public service platforms by Xicheng Incubation & Acceleration Bases
1. To encourage Xicheng Incubation & Acceleration Bases to provide all kinds of public service venues for enterprises, subsidies of RMB 2/m2/day shall be provided; the total annual subsidy shall not exceed RMB 1 million.
2. To encourage Xicheng Incubation & Acceleration Bases to develop professional service platforms, the necessary broadband access shall be provided for free; subsidies equivalent to 50% of actual broadband network costs borne by the bases shall be awarded; Enterprises' expenses on professional services, such as purchase of public software and hardware, construction of joint laboratory and technology platforms, personnel training exchange and international investigation, technology transfer and application promotion services, product R&D and professional design, shall be reimbursed at 20% of the actual investment, but shall not exceed two times their broadband network costs subsidy. The total annual subsidy shall not exceed RMB 800,000.
3. To encourage Xicheng Incubation & Acceleration Bases to provide professional and high-quality services, when annual service income reaches RMB 500,000 and accounts for 20% of total income, RMB 100,000 shall be awarded, with an additional RMB 20,000 for every 5% increase thereupon; when service income reaches RMB 5 million and accounts for 30% of total income, RMB 300,000 will be rewarded, and an additional RMB 50,000 for each further increase of 1% or RMB 5 million (whichever is higher) in income. The total annual award shall not exceed RMB 800,000.
4. To encourage Xicheng Incubation & Acceleration Bases to host entrepreneurship and innovation activities, including influential domestic and international entrepreneurship competitions or important scientific and technological conferences, technical seminars, industry forums and international industry exhibitions, subsidies shall be provided for venue costs, construction costs, equipment rental costs, exhibition setup fees, publicity expenses, and information pack costs, based on the number of participating enterprises, the influence of these activities and their actual effect. The amount of subsidies shall not exceed 30% of actual expenses, and the annual subsidy shall not exceed RMB 500,000. For innovation and entrepreneurship prize competitions primarily supported by Xicheng Park Management Committee and hosted and set up by a Xicheng Incubation & Acceleration Base, expert recruitment and bonus establishment cost subsidies of 20% of the actual costs incurred shall be provided, up to a maximum of 50,000 yuan.
(II) Awards to Xicheng Incubation & Acceleration Bases for cultivating tenant enterprises
1. If in any year a tenant enterprise wins a municipal or national project, award, or title, the relevant Xicheng Incubation & Acceleration Base shall be granted a standard award of RMB 100,000 or RMB 200,000 per occurrence, respectively, with the total amount of awards not exceeding RMB 1.5 million (a single project shall be entitled to one award, whichever is higher).
2. If in any year a tenant enterprise is awarded 50 (inclusive) to 100 intellectual property rights (including patents, usage models, designs, software copyrights, and registered trademarks), the relevant Xicheng Incubation & Acceleration Base shall be awarded RMB 80,000; in case of 100 (inclusive) to 500 IPRs, RMB 200,000 shall be awarded, and in case of over 500 (inclusive), RMB 500,000 shall be awarded. An additional RMB 100,000 shall be awarded for obtaining 10 (inclusive) to 50 patent licensing deals, or an additional RMB 200,000 for 50 (inclusive) or more. If in any year a tenant enterprise participates in the formulation of an industry, national or international technical standard, the relevant Xicheng Incubation & Acceleration Base shall be granted a standard award of RMB 20,000, RMB 50,000 or RMB 100,000 in the year of that standard's promulgation.
3. To encourage the Xicheng Incubation & Acceleration Bases to cultivate and attract innovative and entrepreneurial talents, for each new innovative entrepreneur awarded a title at Beijing municipal level, the relevant Xicheng Incubation & Acceleration Base shall be awarded RMB 50,000; for each title awarded at national level, RMB 100,000 shall be awarded.
4. If over 90% (inclusive) of high-tech enterprises in a base have invested in R&D, with aggregate annual R&D investment exceeding RMB 20 million and the average R&D investment accounting for over 3% of total income, the relevant Xicheng Incubation & Acceleration Base shall be awarded RMB 100,000. For each 1% increase or additional RMB 50 million (whichever is higher) in R&D investment, a further RMB 50,000 shall be awarded.
(III) Awards to Xicheng Incubation & Acceleration Bases for promoting innovation and entrepreneurship development among tenant enterprises
1. Where the total annual income of tenant enterprises reaches RMB 500 million (inclusive) to RMB 1 billion, the relevant Xicheng Incubation & Acceleration Base shall be awarded RMB 300,000; where their total annual income reaches RMB 1 billion, the Xicheng Incubation & Acceleration Base shall be awarded RMB 600,000; a further bonus of RMB 150,000 shall be awarded for each additional RMB 1 billion. The maximum annual award shall not exceed RMB 1.5 million. If the annual average R&D investment by tenant enterprises accounts for less than 3% of their total income, this preferential treatment shall not apply.
2. A Xicheng Incubation & Acceleration Base shall be entitled to an award of RMB 30,000 for each tenant newly listed as a national hi-tech technical enterprise during a year; the total amount awarded shall not exceed RMB 300,000. A Xicheng Incubation & Acceleration Base shall be awarded RMB 10,000 for each net addition to its total number of tenants recognized as Zhongguancun hi-tech enterprises during a year; the total amount awarded shall not exceed RMB 200,000. If a single tenant enterprise is recognized as both a national high-tech enterprise and a Zhongguancun hi-tech enterprise, the total reward stemming from this enterprise shall not exceed RMB 30,000.
3. To encourage Xicheng Incubation & Acceleration Bases to provide tenant enterprises (or projects) with multi-channel financing services: for tenant enterprises successfully listing for financing on the national SME share transfer system, or on a domestic or foreign capital market the Xicheng Incubation & Acceleration Base shall be granted a standard award of RMB 50,000 or RMB 200,000 per enterprise. The award to the relevant base shall not exceed 1% of the aggregate amount of tenant enterprise's (or project's) previous two financing rounds (Angel series and A-series), if enterprises obtain financing or are acquired by a non-holding parent company; the maximum award stemming from a single enterprise (project) shall not exceed RMB 100,000. The aggregate amount of annual support shall not exceed RMB 800,000.
(IV) Support for foreign exchange and cooperation by Xicheng Incubation & Acceleration Bases
1. To encourage Xicheng Incubation & Acceleration Bases to set up cross-border entrepreneurship service institutions overseas, via self-construction, acquisition, cooperation or other methods, a lump-sum financial subsidy shall be awarded, equivalent to 30% of the actual investment, up to RMB 300,000.
2. To encourage Xicheng Incubation & Acceleration Bases to attract overseas talents to return to China for entrepreneurship, and attract technology and service projects in line with the Xicheng District's key development sectors, Xicheng Incubation & Acceleration Bases shall be awarded RMB 20,000 for each overseas team or enterprise relocated, with a maximum annual award not exceeding RMB 200,000.
Article 8 To encourage the Xicheng Incubation & Acceleration Bases to identify one or two hi-tech competitive industries, where the level of that industry's concentration has achieved the criterion set for Zhongguancun hi-tech enterprises, which is 20 enterprises of that kind, with total income in the previous year reaching RMB 500 million (inclusive), the relevant Xicheng Incubation & Acceleration Base shall be granted a standard award of RMB 500,000 or RMB 1 million respectively, as a lump-sum, the first time enterprises of designated competitive industries account for 60% and 80% of total tenant enterprises. Under this clause, the amount of funds enjoyed by a single Base shall not be included in its annual aggregate subsidies, and its cumulative award shall not exceed RMB 1 million, in accordance with the principle of graded compensation.
Article 9 In accordance with Several Provisions of Beijing Xicheng District on Supporting Independent Innovation in Zhongguancun Science Park's Xicheng Park, the construction and development of Xicheng Incubation Platforms shall be supported; the total annual support for a single platform shall not exceed RMB 1 million.
(I) Subsidies for public service space. Subsidies for public space areas such as public equipment, resting places, negotiation, and service premises shall be awarded at RMB 2 per m2 per day. The area of public service space subject to subsidies shall not exceed 20% of the total area, and the total annual subsidy shall not exceed RMB 300,000.
(II) Rewards for cultivating high growth enterprises
1. To support Xicheng Incubation Platforms' tracking and transformation services for enterprises graduating out, the platform shall be granted a lump-sum award for transferring five or more high-growth enterprises to Xicheng District for the purpose of starting business, in a year, based on the total income of the transferred enterprises in the previous year, and their total income growth during two consecutive years. RMB 100,000 shall be awarded when the total income in the previous year reaches RMB 10 million (inclusive) to RMB 50 million, and at least 2 enterprises recorded income growth of 20% for two years in a row. Where total income in the previous year is RMB 50 million (inclusive) to RMB 100 million, and at least four enterprises recorded income growth of 10% in two consecutive years, RMB 200,000 shall be awarded. RMB 500,000 shall be awarded for total income of RMB 100 million (inclusive) or above in the previous year, where at least six enterprises recorded 5% income growth for two consecutive years.
2. The District Incubation Platform shall be awarded RMB 30,000 for each net addition to its total number of national hi-tech enterprise in a year, or RMB 10,000 for each net addition to its total number of Zhongguancun hi-tech enterprises in a year. If a single tenant enterprise is recognized as both a national high-tech enterprise and a Zhongguancun hi-tech enterprise, the total reward stemming from this enterprise shall not exceed RMB 30,000. The total annual award shall not exceed RMB 300,000.
3. If enterprises (projects) operating in a Xicheng Incubation Platform obtain financing or are acquired by a non-holding parent company, the Platform shall be granted an award of not more than 1% of the total amount those enterprises' (projects') first two rounds of financing (Angel series and A-series); the maximum award stemming from a single enterprise (project) shall not exceed RMB 50,000, and annual total awards shall not exceed RMB 200,000.
4. For enterprises cultivated by a Xicheng Incubation Platform which have opened for business there, and have been listed on the national SME share transfer system, or on a domestic or foreign capital market, a lump-sum award of RMB 50,000 or RMB 200,000, respectively, shall be awarded.
Article 10 All types of incubation platforms in Xicheng Incubation & Acceleration Bases must not enjoy special Xicheng Incubation Platform funding support.
Article 11 Xicheng Incubation & Acceleration Bases and Xicheng Incubation Platforms shall independently utilize the special funds according to the purposes specified in the following regulations, so as to ensure that special project funding is used for relevant projects:
(I) Improving the level of incubation services' software and hardware resources;
(II) Supporting and rewarding the tenant enterprises' independent innovation, and providing subsidies to tenant enterprises for application in all kinds of science and technology projects, technology and product research and development, exhibition, and trading activities;
(III) Supporting innovation and entrepreneurship by high-end talents, scientific and technological talents and personnel returning to China from abroad, and supporting incubation teams' improvement of their service ability via methods including talent incentives and training, talent project funding, and awards;
(IV) Offering subsidies to cover expenses incurred by tenant enterprises in applying for high-tech enterprises, and expenses incurred for various necessary intermediary services;
(V) Organizing activities such as study and investigation, business exchange, professional training, shows and exhibitions, and international cooperation and exchange, for tenant enterprises and incubation teams, and improving the innovation and entrepreneurship ability of enterprises and the professional level of incubation teams;
(VI) Establishing and constantly improving equity and debt investment incubation modes, and setting up venture capital funds for use by service teams. The proportion of special funds invested by Xicheng Incubation & Acceleration Bases shall not exceed 50% of their total venture capital.
Chapter IV Assessment
Article 12 Xicheng Park Management Committee shall organize annual assessments for Xicheng Incubation & Acceleration Bases and Xicheng Incubation Platforms. Those passing assessment in a year shall be eligible for special fund support; otherwise, they shall not be granted such support, but may retain the Xicheng Incubation & Acceleration Base or Xicheng Incubation Platform designation. However, Xicheng Incubation & Acceleration Bases and Xicheng Incubation Platforms which fail the annual assessment for two consecutive years shall lose this designation, and shall not be permitted to reapply for two years.
Article 13 Recognized Xicheng Incubation & Acceleration Bases and registered Xicheng Incubation Platforms shall be subject to annual assessment in accordance with these Measures; those failing to meet the standards shall be subject to the relevant provisions of Article 12.
Article 14 Xicheng Incubation & Acceleration Bases and the Xicheng Incubation Platforms shall submit enterprise status monitoring data on a half-yearly basis, and shall submit work reports, special support fund applications and usage plans, statements on progress of Party Caucus Labor Union and United Front Work, and other materials annually.
Chapter V Supplementary Provisions
Article 15 These Measures shall come into force from November 18, 2019. The original Notice of Beijing Xicheng District People's Government on Issuing Measures for Recognition and Support of Incubation and Acceleration Platforms for Technology Enterprises in Xicheng District, Beijing (XZF [2016] No. 17) shall be withdrawn accordingly.