As stipulated in Interim Provisions of Shanghai Municipality on Encouraging Foreign Multinational Corporations to Establish Regional Headquarters published in 2003, regional headquarters established in Shanghai are divided into two categroeis: investment oriented companies and management oriented companies.

Companies that establish a regional headquarters qualify for the following preferential policies: (1) employee training subsidies (2) reduced personal income taxes (3) import and export management rights (4) residence permits and travel visas for foreign nationals.