Hua Fu Ban Gui [2021] No.1

All township governments (street community offices), and units directly under the district government:

TheMeasures of Huadu District for Supporting Innovation and Entrepreneurship of Youth from Hong Kong, Macao and Taiwan (Trial) have been approved by Huadu District People’s Government and are now issued to you for your compliance and implementation. Problems encountered in the implementation shall be directly reported to the Huadu District  Development and Reform Bureau.

Office of Huadu District People's Government of Guangzhou Municipality

5 March 2021

Measures of Huadu District for Supporting Innovation and Entrepreneurship of Youth from Hong Kong, Macao and Taiwan (Trial)

Chapter I General Provisions

Article 1 These Measures are formulated for the purposes of fully implementing the Outline of Guangdong-Hong Kong-Macao Greater Bay Area Development Plan, accelerating the development of the Guangdong-Hong Kong-Macao Greater Bay Area, promoting the economic and social progress of Huadu District, and building the district into an innovation and entrepreneurship hub for young people from Hong Kong, Macao and Taiwan, in accordance with the Implementation Opinions of Guangzhou Municipal People's Government of CPC Guangzhou Municipal Committee on Implementing the Outline of Guangdong-Hong Kong-Macao Greater Bay Area Development Plan (Sui Zi [2019] No.8).

Article 2 Hong Kong, Macao and Taiwan youth. The “Hong Kong, Macao and Taiwan youth” herein refer to residents of Hong Kong, Macao and Taiwan (who have obtained permanent resident status) aged 18 to 44 (including 18 and 44, subject to the deadline for project declaration), who have good conduct and advocate the Constitution of the People's Republic of China and support the principle of “one country, two systems”.

Article 3 Enterprises or institutions. The “enterprises or institutions established by Hong Kong, Macao and Taiwan youth” herein shall meet all the following conditions:

(1) Having over 25% of shares held by Hong Kong, Macao and Taiwan youth;

(2) Having a sophisticated financial system and independent legal person status.

Article 4 Platforms. The “Hong Kong, Macao and Taiwan youth innovation and entrepreneurship platforms” herein refer to bases, parks, incubators, accelerators, entrepreneurial communities, and makers space that have been approved by the Hong Kong and Macao youth innovation and entrepreneurship work force of the Greater Bay Area development leading group of Huadu District. These platforms shall meet one of the following conditions:

(1) A platform shall have no less than ten enterprises or institutions established by Hong Kong, Macao and Taiwan youth, six of which shall be from Hong Kong and Macao. Such enterprises shall account for no less than 20% of the total;

(2) National, provincial and municipal-level Hong Kong, Macao and Taiwanyouth innovation and entrepreneurship platforms that are identified by the Greater Bay Area youth innovation and entrepreneurship departments at respective levels.

ChapterII Support for Business Start-ups

Article 5 Support for start-up funds. An enterprise or institution established by Hong Kong, Macao and Taiwan youth that have won a prize in the one of the following Innovation and Entrepreneurship Competitions may be granted a start-up reward of up to CNY 500,000.

(1) National competitions. For a start-up that has attended and won a prize in the final of industry group of China Innovation and Entrepreneurship Competition or the China College Students’ Entrepreneurship Competition, a subsidy of 100% of the competition rewards may be granted by Huadu District People’s Government, subject to a maximum amount ofCNY 500,000;

(2) Provincial and municipal competitions. For a start-up that has attended and won a prize in the final of Guangzhou Division of China Innovation & Entrepreneurship Competition, Guangdong Division of the China Innovation & Entrepreneurship Competition, Guangdong College Students’ Entrepreneurship Competition, China Innovation and Entrepreneurship Competition of Hong Kong, Macao and Taiwan, or Huadu District Session of Guangzhou College Students’ Entrepreneurship Competition, a subsidy of 50% of the competition award may be granted, subject to a maximum amount ofCNY 200,000.

A start-up that has participated in multiple competitions may file more than one application for the above-mentioned funds. However, such competitions must be those held after the implementation of these Measures.

Article 6 Subsidy for settlement. For start-ups established by Hong Kong, Macao and Taiwan youth that have been in operation for one year and have paid taxes in accordance with laws, a one-off subsidy for settlement of 20% of their initial paid-in capital contribution may be given, subject to a maximum amount of CNY 100,000.

ChapterIII Innovation Encouragement

Article 7 Subsidy for science and technology transformation transactions. Enterprises are encouraged to purchase technological achievements from Hong Kong, Macao and Taiwan youth and from innovative teams with them as their core, and complete transfer or transformation in Huadu District. Such enterprises may be granted a subsidy of 30% of the actual technical transaction amounts, subject to a maximum amount of CNY 300,000 per contract. Each enterprise is allowed to apply for such grants once a year.

(1) An applicant of the subsidy for scientific and technological transformation transactions shall meet the following conditions:

a. Such activity shall involve the transformation of scientific and technological achievements such as core technological inventions and intellectual property rights;

b. The technology-related property rights involved in the technology contract shall be clear, with no ongoing alleged infringement or invalidation affair;

c. The transformation of technological achievements shall be completed in Huadu District.

(2) The core technological invention patents herein mean a invention patent corresponding to a technology that must be used to manufacture a certain product; the lack of such technology will lead to principled changes of the whole product or unavoidable significant faults.

(3) The transformation of technological achievements herein means that the translation of patents or other intellectual property rights purchased from Hong Kong, Macao and Taiwan youth at home and abroad, or from innovation teams with them as their core into products and benefits through R&D and production in an enterprise.

(4)The identification of the transformation of scientific and technological achievements including core technological invention patents will be organized by the competent department of intellectual property rights and scientific and technological innovation of Huadu District and submitted to the municipal department of science and technology for approval.

(5) Technical contracts shall be registered by technical contract certification and registration institution of Huadu District.

ChapterIV PlatformConstruction

Article 8Reward for recognition. For any platform that has been recognized as a national, provincial or municipal-level Hong Kong, Macao and Taiwan youth innovation and entrepreneurship incubation platform, a one-off award of CNY 500,000, CNY 300,000 and CNY 200,000 may be granted respectively. The rewards can be applied for more than once.

Article 9 Subsidy for platform construction. Each year, up to two selected excellent incubation platforms of Hong Kong, Macao and Taiwan youth innovation and entrepreneurship may receive a subsidy after construction. A platform may file an application for the fund. Once approved, it may be granted a one-off subsidy of up to 50% of the total expenses of platform construction, subject to a maximum amount of CNY 800,000.

Applicants must meet the conditions stipulated in Article 4 of these Measures, and the investment period shall not exceed two years from the implementation date of these Measures. The main evaluation indicators involve the qualification of the incubation service teams, service infrastructure, capital investment and use, achievements of enterprise of Hong Kong, Macao and Taiwan youth , economic and social benefits of the platform, etc.

ChapterVFinancial Support

Article 10 Private fund. We will establish a youth innovation and entrepreneurship fund of Guangdong-Hong Kong-Macao Greater Bay Area with no less than CNY 100 million, focusing on the investment in premium innovation and entrepreneurship projects for the young from Hong Kong, Macao and Taiwan. Also, other multi-level services including angel investment and equity investment will be provided.

Article 11Subsidy for loan interest. Banking institutions are encouraged to provide loans at preferential interest rates for young people from Hong Kong, Macao and Taiwan to set up enterprises or institutions. For those who have obtained loans from commercial banks to start businesses, a subsidy of 50% of the total loan interest may be granted, subject to a maximum amount of CNY 300,000. Each enterprise can only apply for this subsidy once.

Article 12 Policy loans. enterprises or institutions established by Hong Kong, Macao and Taiwan youth can apply for inclusion in the “district-supported enterprise list” of the “loan guarantee and assistance” service and enjoy policy loans benefits of Huadu District.

ChapterVI Subsidy for Offices , Housing and Individuals

Article 13 Office subsidy. Any enterprise or institution established by Hong Kong, Macao and Taiwan youth in a Hong Kong, Macao and Taiwan youth innovation and entrepreneurship incubation platform may be granted a subsidy of 75% of the office rent in the first year, 50% in the second year and 30% in the third year, subject to a maximum amount of CNY 150,000 for three years in total per enterprise or institution.

Article 14 Employment subsidy. Young entrepreneurs from Hong Kong, Macao and Taiwan who have successfully started a business and operated normally for more than six months may be granted a one-off start-up subsidy of CNY 10,000 per person. Each individual can only enjoy such start-up subsidy once.

Article 15Training subsidy. Entrepreneurship training institutions that provide free entrepreneurship training for eligible Hong Kong, Macao and Taiwan youth may be given a training subsidy, with reference to pertinent documents from the superior departments of human resources and social security.

Article 16 Housing subsidy. Qualified youth from Hong Kong, Macao and Taiwan will have a priority in enjoying talent apartments (built by the government or by the entrepreneurial bases). Eligible Hong Kong, Macao and Taiwan youth can apply for a rent subsidy, which will be given according to relevant municipal standards and regulations.

Article 17 Other subsidies. Subject to national, provincial and municipal regulations, Hong Kong, Macao and Taiwan youth will be granted a subsidy, equaling to the portion of the  individual income tax paid in Huadu District that exceeds the 15% of the taxable income of the previous year. Such subsidy is exempted from individual income tax.

ChapterVII Cooperation and Exchanges

Article 18 Activity subsidy. For Hong Kong, Macao and Taiwan youth activities including national and Guangdong-Hong Kong-Macao Greater Bay Area youth innovation and entrepreneurship forums, professional seminars, technological achievements fairs, cultural exchanges, and roadshows of large-scale projects, a subsidy of 20% of the actual costs may be granted to the hosting enterprise or institution, subject to a maximum amount of CNY 200,000 per event for up to five events per year.

An applicant for the subsidy for Hong Kong, Macao and Taiwan youth activity shall meet the following conditions should be met:

(1)Such activities as national and Guangdong-Hong Kong-Macao Greater Bay Area youth innovation and entrepreneurship forums, professional seminars, technological achievements fairs, cultural exchanges, and roadshows of large-scale projects shall be held in Huadu District and shall have no less than 150 participants.

(2) Participants must includecadres at or above the deputy-department or bureau level and high-level talents (leading talents) recognized by the national, provincial and municipal authorities, or core members of a innovation and entrepreneurship team, or entrepreneurship mentors at or above provincial level.

(3)Hosts shall undergo registration procedures in accordance with regulations before launching the activities. No subsidy will be given to activities with a higher income than expenditure; the subsidy amount shall not exceed the difference between the activity income and expenditure; in case that the activity is partly funded by government departments, such fund shall be deducted from the activity subsidy.

ChapterVIII  Support Services

Article 19 Efficient use of land. Under the premise of not changing the nature of land use, preference will be given to support Hong Kong, Macao and Taiwan youth innovation and entrepreneurship platforms in handling property certificates for floor-specific and building-specific industrial housing. On the basis of meeting planning requirements and not changing the functions of the land, the platforms are allowed to be equipped with a certain proportion of administrative offices and living facilities. For any ordinary industrial land, the support facilities area may cover up to 7% of the gross land area or 14% of the total construction area; for any new-type industrial land, the support facilities area may cover over 30% of the total construction area, and the area for independent construction may account for up to 10% of the gross land area.

Article 20 Convenient government services. Special columns, special service windows and service commissioners shall be set up in Huadu District Government Service Center for Hong Kong, Macao and Taiwan youth innovation and entrepreneurship, and policies on the development of those young people will be published in a unified manner. By so doing, we aim to provide them with convenience, guidance and channels to speed up the handling progress of matters concerning commercial registration, planning, environmental protection, firefighting, and property right certificates. In addition, self-service terminals will be provided in their innovation and entrepreneurship bases to offer efficient services.

Article 21 Urban support services.

(1)Children's education. Eligible children of Hong Kong, Macao and Taiwan youth who intend to study in a primary or secondary school in Huadu District may enjoy a priority in getting admitted to a public school, attending special classes for children from Hong Kong and Macao, and participating in exchanges. Their admission to high schools shall be subject to the Guangzhou Senior High School Entrance Examination Policy.

(2) Life and travel.Priorities will be given to the construction of support facilities near the platform. Services including assistance in paying utility bills (water, electricity, gas, broadband, fixed line, etc.) online, handling and consultation of entry and exit business, and travel reservation and consultation will be provided.

(3)Medical services. Hong Kong, Macao and Taiwan youth who purchase medical insurance in Huadu District will enjoy a priority in registration, premium payment, and compensation.

(4) Residence permit application. Yong people from Hong Kong, Macao and Taiwan who are qualified to apply for residence permit of Hong Kong, Macao and Taiwan will be provided with free services including application guidance, and materials completion and reviews.

(5)Talent housing. Hong Kong, Macao and Taiwan youth eligible to apply for talent housing will be provided with free services including application guidance, and materials completion and reviews.

ChapterIX Supplementary Provisions

Article 22 These Measures are applicable to the youth from Hong Kong, Macao and Taiwan who are employed or start a business, enterprises or institutions established by Hong Kong, Macao and Taiwan youth which are registered, or Hong Kong, Macao and Taiwan youth innovation and entrepreneurship platforms which are recognized after 1 January 2019,

The terms “above/over”, “not exceed” and “a maximum amount of/up to” mentioned herein all include the base number, and the currency involved refers to CNY.

These Measuresapply to enterprises or institutions engaged in production and business activities in Huadu District. Enterprises or institutions founded by young people from Hong Kong, Macao and Taiwan enjoying the support shall promise not to move out of Huadu District, not to change their tax payment obligation in the district, nor to reduce their registered capital within five years upon receiving the first sum of subsidy.

Article 23Where any project or matter that meets the requirements herein meets other support policies (including policies of supporting or undertaking funds required of Huadu District by superior departments) or key project support of Huadu District, support will be given in accordance with the policy that grants the largest subsidy.

Article24 The support funds herein shall be arranged by Huadu District People’s Government in coordination with the funds allocation for green industry. Huadu District Development and Reform Bureau (Huadu District Greater Bay Area Office) will handle the applications, solicit opinions from the District Human Resources and Social Security Bureau, the District Housing and Urban-Rural Development Bureau, the District Administration for Market Regulation, the District Finance Bureau, and the Communist Youth League Committee. The funds will be allocated by the District Finance Bureau after identification by the District Green Development Leading Group and the approval from the district government executive meeting.

Article 25 Applicants, either units or individuals, shall uphold the principle of “one country, two systems”, and have no record of misconduct such as violation of laws and regulations. If an applicant is found to have defraud the support fund herein will be immediately disqualified from the support, and will be banned from applying for such support within three years. The obtained reward will be recovered by the corresponding competent department, and such behavior will be listed in the credit record and publicized to the public by the Huadu District Development and Reform Bureau.

Article 26 These Measures shall come into force on the date of promulgation and shall remain in force for three years.

Form of Disclosure: Active Disclosure