Favorable Policies for Financial Leasing Companies in Pudong
Since Shanghai Free Trade Zone Pudong expanded its jurisdiction to Pudong New Area, it becomes the most popular area for the financial leasing companies in China. According to the latest data, there are 1207 financial companies registered in Pudong with the total registered capital 424.3 billion. The balance under the financial leasing agreement is over 1000 billion which takes as around 30% of the national number. Whilst, there are 384 SPV registered in bonded area of Shanghai FTZ with the assets around 46.1 billion including 223 civil planes, 28 vessels and large equipments as the engine for planes.
A lot of favorable policies was applicable in Pudong. For example, the financial business for the single plane or ship was permitted; Commercial factoring business related with its main business was permitted; and the first subsidiary for the financial leasing was set up in Pudong.
Further, the new policy as “Some Opinions Regarding to the Promotion the Healthy Development for Financial Leasing Industry in Pudong” was issued recently and we conclude some extra favorable points.
1. The government subsidy for the financial leasing industry can be applied:
l The subsidy can be applied for those newly established financial leasing company or the financial leasing company who increases its capital;
l The subsidy for rent or purchasing the office can be applied for those newly established financial leasing company;
l The subsidy for the senior management can be applied;
l The subsidy for the purchasing equipment, plane, vessel can be applied;
2. The senior management can enjoy the favorable visa policies.
3. The allowance will be given to those financial leasing companies which successfully connect with the credit system of the People’s Bank.
4. It is encouraged for the insurance company to development the financial leasing products.
5. It is to set up the transaction platform and enlarge the scope and scale for financial leasing matter. It is to improve the quit formalities for the leasing asses.
Shanghai Dongjin finds that, Pudong government devotes its full effort to support the development for financial leasing industry and the relevant governments had a smooth internal discussion and reached a consensus. Especially for the foreign invested financial leasing companies, we suggest the client considering picking up its registered address it in Pudong.
If you want to know more details, please contact our senior consultant.
Ms. Jojo Hu
TEL: 0086-21-68868335 ext 324 / FAX: 0086-21-68868021