(Yicai Global) June 20 -- Dongguan in southeast China's Guangdong province, often referred to as "the world's factory", unveiled new policies to attract enterprises to base their headquarters in the city.

The local government will provide one-time reward at different levels for companies that have newly relocated their headquarters to the city, with the rewards ranging up to CNY100 million (USD15.4 million), said a policy document issued yesterday. It aims to boost the development of headquarters economy, reported state-run news agency China News Service.

The government will strive for building an ecosystem to attract companies, develop a cluster of corporate headquarters with regional competitiveness and radiant driving force, and transform Dongguan into an advanced international manufacturing center.

The document says the city plans to attract more than 100 corporate headquarters by 2025. To this end, it will encourage some of Guangdong's top 100 companies as well as China's top 500 companies to base their headquarters in Dongguan.

The city will reward companies based on the scale of their business and their contribution to the local economy. It will provide one-time reward ranging from CNY2 million to CNY100 million for integrated companies that relocate their headquarters to the city. Companies with functional headquarters based in the city will receive rewards ranging from CNY1 million to CNY50 million

For companies that have already moved corporate headquarters to the city, the government will offer one-time reward based on the percentage of contributions those companies have made to the local economy over the past five years. However, the reward for such firms shall not exceed CNY50 million.

The local government will also offer other kinds of support including land area, office space, talent pool and financing.

Corporate headquarters refer to registered corporate legal entities that operate legally and manage and serve their holding companies and branch companies, whereas functional corporate headquarters means large-sized corporate headquarters authorized by parent companies' headquarters to perform part of its functions or exercise single management function, public data show.

Editor: Mevlut Katik