SHENZHEN, Jul. 10 – The Shenzhen government released the Administrative Measures of Shenzhen for the Recognition of High and New Technology Enterprises earlier this month, laying out two sets of rules regarding the recognition of high-tech enterprises in the city.

The measures listed the industries which qualify for high and new technology enterprise status, including electronic information and software, new materials, medicine and medical apparatus, environmental protection and new energy. It should be noted that enterprises only engaged in product sales will not be recognized as high and new technology enterprises.

The measures also specified the required proportion of research and development costs, lowering it to 5 percent for enterprises with sales revenue of RMB50 million or less, 3 percent for enterprises with sales revenue of between RMB50 million and RMb200 million, and 2 percent for enterprises with sales revenue in excess of RMB200 million. This reduction will allow more enterprises in Shenzhen to enjoy local preferential policies for new and high technology enterprises as the proportions are much lower than the national standard.

For more information on these administrative measure, or general information on establishing business in Shenzhen, please contact Dezan Shira & Associates at shenzhen@dezshira.com.

This article is also available in German.