Hengqin increases incentives for young entrepreneurs

Hengqin New Area has recently issued 32 preferential policies regarding subsidies, platform construction, rewards, and entrepreneurial environment optimization to support innovation and business start-ups by young people from Macao, Hong Kong, and Taiwan.

The policies are mainly applicable to Macao residents aged 18 to 45. Their start-ups would be engaged in sci-tech innovation, characterized finance, medical treatment and healthcare, cross-border commerce, cultural-tourism conventions and exhibitions, and professional services in Hengqin and the integrated zone.

Hong Kong and Taiwan people in the same age range, plus their start-ups and business incubators, also qualify, as do mainland youths who have graduated from Hong Kong or Macao universities.

To reduce their burden, start-ups that settle in Macao- Hengqin Youth Entrepreneurship Valley, Hengqin International Science & Technology Innovation Center, and other government-sponsored innovation-entrepreneurship carriers can receive a subsidy up to 80 percent of rental and property management fees.

A maximum interest subsidy of 3 million yuan ($426,000) and one-off guarantee fee subsidy of up to 50,000 yuan ($7,100) are available for those obtaining entrepreneurial loans from Zhuhai, Hong Kong, or Macao financial institutions.

Meanwhile, the start-ups can also receive a social insurance subsidy for recruiting Macao university graduates and a maximum award of 10,000 yuan ($1,420) for recruiting more than three such graduates within one year of establishment.

Start-ups sponsored by the Macao Science & Technology Development Fund's Enterprise Innovative R&D Project Funding or Macao Economic Bureau's Macao Youth Entrepreneurship Assistance Scheme can be granted up to 2 million yuan ($284,000). Winners of national, provincial, or municipal innovation-and-entrepreneurship competitions that settle in Hengqin will garner up to 1 million yuan ($142,000).

A one-time subsidy of 1.2 million yuan ($170,500) will be given to national hi-tech enterprises and top 100 hi-tech enterprises in Zhuhai. Sci-tech projects included in the national, provincial, or municipal gratuitous grant programs will receive a maximum annual fund of 5 million yuan ($710,400).

Those listed on oversea stock exchanges will be awarded up to 3.3 million yuan ($468,600), while eligible companies will receive a maximum angel investment of 20 million yuan ($2.8 million).

Newly launched incubators that are recognized as Hengqin-Macao Youth Innovation & Entrepreneurship Bases by the local administrative committee will attain a one-off subsidy of up to 10 million yuan ($1.4 million). Those having realized operation targets and remarkable achievements are eligible for a maximum reward of 2 million yuan.

Newly recognized national, provincial, and municipal incubators will be granted a one-time subsidy of up to 3 million, 2 million, and 1 million yuan respectively.

In addition to talent apartments, high-level Macao talents can also apply for rent and living subsidies of 500,000 yuan ($71,000). PhD, postgraduates and undergraduates recognized as municipal talents can receive a superimposed subsidy of 400,000 ($56,800), 79,000 ($11,200), and 43,000 yuan ($6,110) respectively.

Individual income tax that exceeds 15 percent of taxable income will be subsidized. Special talents will be rewarded 20 percent to 40 percent of their direct economic contribution to Hengqin. Macao university graduates that choose to work in Hengqin will obtain 3,000 yuan ($426) after paying six months of social security fees.

Up to 100 million yuan ($14 million) in R&D subsidies will be given to winners of the Hengqin Sci-tech Innovation & Entrepreneurship Competition. Macao universities and mainland institutions are encouraged to set up industry-university-research cooperation bases in Hengqin and push forward the transformation of university research achievements there.

Furthermore, Macao youths can enjoy the same treatment as Zhuhai residents in house purchases, children's education, medical treatment, and housing provident funding.

Hengqin has set up a Macao Youth Entrepreneurship Service Center to provide consultation on policies and laws, accounting and taxation, and financing, plus employee skill trainings and entrepreneurship guidance.

Furthermore, it will launch cross-border expresses, and organize internship programs and recruitment activities at Macao universities.