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Zhongguancun enterprises find it difficult to retain foreign students with prestigious university degrees due to difficulties to get a work visa. However, the problem will soon be tackled as two projects concerning entrepreneurship and innovation have been launched in Beijing on Feb 4.
Zhongguancun will take supportive measures in terms of of personnel, enterprises, finance, service institutions and culture to promote entrepreneurship. It will provide support with Zhongguancun firms' foreign legal representatives, foreign senior management personnel and professional technique personnel with core technology applying for Foreign Expert Certificate, and gradually help ease up the restrictions on employment and entrepreneurship of foreign personnel by providing employment and residence permits.
Furthermore, Zhongguancun will give financial support to high-tech enterprises established by technical personnel and teachers in colleges and universities. Enterprises founded in the form of limited partnerships can also enjoy preferential policies.
Several incentives are made to promote innovation and development of startups. Enterprises will be exempted from income tax if they earn less than 5 million yuan ($799,500) from technology transfer in a tax year.
Enterprises which buy high-end technology intermediary services including credit intermediary services, certification intermediary services, IPR intermediary services, assessment services, technology transfer services and legal services will get financial support according to their actual costs.
To reduce the risks of capital depletion the Zhongguancun Administrative Committee can buy as much as 30 percent of shares and provide some subsidies to angel investment and venture capital fund initiated by institutions including venture capital institutions, academics, leading enterprises and technological business incubators in Zhongguancun.
The administrative committee will provide 30 percent to 50 percent compensation for the bad loans from credit institutions including banks and accredited credit institutions if they have offered financing for eligible startups.
