SHANGHAI, July 30 –The municipal government of Shanghai has announced new regulations in an effort to urge more top multinational companies to establish regional headquarters in the city.

The regulations will qualify a newly registered company to get funding from the Shanghai government during its start-up period and preferential rental policy. In addition, it will allow high-level foreign managers to apply for permanent residency status.

These companies will also be given expedited service in terms of work permits for both their foreign and domestic employees. To qualify as a regional headquarters, the company should have the comprehensive functions of operation management, capital management, research and development, sales, logistics and support service.

According to the Shanghai Headquarters Economy Promotion Center, more than 300 domestically listed companies and 183 multinationals have set-up their regional headquarters in the city by the end of 2007 along with another 165 overseas-funded investment companies and 244 multinational R&D centers. The local government wants 3,000 regional headquarters in the city by 2013.

For this year, a total of 10 multinational companies are said to have been approved. As a possible location for regional headquarters while Shanghai may not be comparable to the mature markets of Singapore and Hong Kong, it boasts of a stable financial market, great infrastructure, huge consumer base and serves as an ideal place to expand China presence.