In 2018, Shaoxing City attracted a foreign capital of $1.35 billion, a year-on-year increase of 5.0 percent. The total foreign investment and completion rate ranked fourth in the province.
13 major projects were introduced to the city, including the $929-million SMIC manufacturing project and $128-million Axilone M&A project.
Shaoxing is building an advanced intellectual infrastructure base in Hangzhou Bay. The base has four state-level development zones, seven provincial-level functional zones, and a broad investment platform.
In order to create a better business environment for the development of high-quality private economy, and to boost the morale of private enterprises in Shaoxing, Shaoxing Municipal Government proposed a series of policies and measures based on the practical situations of the city in the Opinions on developing high-quality private economy in Shaoxing issued in November 2018.
Reduce the burden of taxes on private enterprises
1. Improve the long-term mechanism for reducing costs. We will implement both national and provincial policies to decentralize administrative powers, reduce operational costs, and clear fees to ensure that the burden on enterprises is reduced by more than 10 billion yuan per year.
A dynamic adjustment and publicity systems for the list of service-related charges of government funds and administrative fees for enterprises. The system will ensure that “zero charges” shall be collected outside the list. The list system of the enterprise-related deposit list will also be strictly implemented. Enterprise-related deposits outside the list shall not be executed.
2. Implement tax reduction and exemption policy. In strict accordance with the requirements of the State Council, the city will stick to the "3 +7" tax reduction measures and new personal income tax reform to substantially reduce corporate taxes and fees of private enterprises.
Carry out the policy of differential tax reduction and exemption for urban land use, and adjust the proportion of reduction and exemption for eligible enterprises in accordance with the requirements. We will implement the policy of lowering the levy standard for stamp duty on purchase and sale contracts, and unify the standards for stamp duty on purchase and sale contracts.
3. Offer tax assistance for troubled private enterprises. Stay in close touch with the situation of private enterprises in the “white list”, and open a special channel for private enterprises that face difficulties in business management but good tax credits to apply for tax deferred payment according to the relevant provisions of the Tax Administration Law. The government shall prioritize the export tax rebate within 5 working days for the above private enterprises.
Enhance the effectiveness of tax-related services. The city launched 45 measures to optimize tax-related business activities, reducing the number of annual tax payments to seven times, the number of documents by 30 percent and the annual tax time to less than 120 hours.
Shorten the processing time limit for China Tax Resident Identity Certificate to less than five working days. Optimize and adjust the tax service outlets based on the plan of “half-hour tax circle” and “10-minute average waiting time”. Gradually expand the service scope to provincial and national tax-related errands. Implement various types of export tax rebate policies, and prioritize eligible private export enterprises, especially those involved in business relations with the United States.
Ease the financing burdens of private enterprises
1. Supporting private enterprise bond financing. We will promote pilot projects for private enterprise bond financing support programs, and encourage high-quality private enterprises and listed companies and their shareholders with prominent businesses and relatively reasonable debt ratios to issue or renew debt financing instruments.
2. Promoting direct financing of private enterprises. The city will implement the "Phoenix Action" plan through solidly carrying out the construction of the demonstration zone for listed companies, and standardized shareholding system transformation.
High-quality enterprises are encouraged to actively connect with the capital market. More science and technology innovation funds and talent innovation funds will be added to foster start-up enterprise investment projects, military-civilian integration projects, and leading innovative enterprises.
3. Leading credit resources towards small and micro enterprises. Shaoxing will implement a “three-year growth plan” for small and micro enterprises. It will increase the credit supply to as much as five million yuan to small and micro enterprises, and issue small and micro enterprise loans and individual industrial and commercial household loans and small business owners' operating loans for single-funded credits of or less.
Small and micro enterprises with a total credit of 10 million yuan or less will make their voice heard and be provided with credit loans and secured loans. The process of renewing loans will be simplified.
Optimize the development environment of private enterprises
1. Deepen the "one stop service" reform. In 2019, more than 100 new items will be added to the "one license” list, accounting for more than 90 percent of the civilian affairs. We will vigorously put forward online administrative service platforms, such as Zheliban and Yidongban.
2. Improve the quality and efficiency of the management process of business licenses. Fully implement the reform of separation of licenses. A data interaction and sharing mechanism relying on the Zhejiang government service network is to be formed among various government departments.
Nearly 20 departments in the administrative service center will offer non-differential services for over 300 kinds of licenses and filings. By the end of June 2019, the number of free agent offices for license approvals in the city will reach 500.
3. Fully implement the fair competition review system. Under the guidance of Notice of Shaoxing Municipal People's Government on Establishing a Fair Competition Review System in the Construction of Market System, the city will amend policies that hinders the fair competition of private enterprises, strengthen government review of policies and measures involving market entities' economic activities, and tolerate no acts that keep private enterprises away from participating in fair competitions.
4. Expanding investment channels for the private economy. Breaking the barriers of market access and encouraging private capital to invest in "Made in China 2025". In the process of upgrading of traditional industries, nurturing emerging industries and developing modern service industry, Shaoxing will actively participate in the construction of Dawan District.
It will increase the opening up of infrastructure and public utilities, revitalize high-quality stock assets and introduce more investment to private enterprises. Acts of exclusion, restriction or discrimination of private capital will be prohibited. The government encourages private capital to participate in the mixed ownership reform and exert influence in the cooperation between the two parties.
5. Strengthening the construction of enterprise service platforms. Further expand the service scope offered on the SME public service platform, and build the center of information release, policy consultation and collaborative services. An public service ecological network enterprise covering the city, counties and townships will also be established.
For the establishment of an industrial Internet platform with independent intellectual property rights, a subsidy of 25 percent of the investment will be granted, up to 3 million yuan. For those who attract or serve more than 100 local enterprises will be given a one-time award of 500,000 yuan. Well-known domestic industrial Internet platforms are welcomed to the city.
Improve the quality of private enterprise development
Increase subsidies for R&D investment of private enterprises. Enterprises are encouraged to establish a research and development reserve system. The government will intensify support for private enterprises' scientific and technological projects, and provide financial fund of at least 2 million yuan and no more than 3 million yuan for the 25 percent of the project's actual R&D investment.