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Regulations of Xiamen Municipality on Promoting the Development of Private Sci-tech Enterprises
Chapter I General Provisions Article 1 In order to promote the development of private scientific and technological enterprises and safeguard their legitimate rights and interests, these Regulations are formulated in accordance with the provisions of the Law of People's Republic of China (PRC) on the Progress of Science and Technology and other relevant laws and regulations, combined with the actual situation of this Municipality. Article 2 The term "private scientific and technological enterprises" as mentioned in these Regulations refers to the economic entities that are mainly engaged in the transformation of scientific and technological achievements and technological innovation, and implement the operating mechanism of self-financing, voluntary combination, independent operation and self-financing, and are recognized in accordance with these Regulations. Private scientific and technological enterprises include collective economy, cooperative economy, joint-stock economy, private economy and other scientific and technological enterprises, as well as those established by state-owned enterprises and institutions to implement private mechanism. Article 3 People's governments at all levels shall incorporate the development of private scientific and technological enterprises into the national economic and social development plan, and protect and promote the healthy development of private scientific and technological enterprises. Article 4 The administrative department of science and technology shall be responsible for the policy guidance, qualification determination, comprehensive statistics, coordination and service of private technology enterprises, and organize the implementation of these Regulations.

The relevant administrative departments of economy, trade, industry and commerce, finance, taxation, personnel and labor shall, according to their respective functions and duties, strengthen their support, guidance and services to private scientific and technological enterprises. Article 5 People's governments at all levels shall commend and reward private scientific and technological enterprises and their relevant personnel who have made outstanding contributions to economic construction and social development. Chapter II Qualifications Article 6 An enterprise established according to law and meeting the following conditions may apply to the municipal administrative department of science and technology for recognition as a private technology enterprise:

(a) in line with the national industrial policy, technical policy and the direction of industrial development in this Municipality, mainly engaged in scientific and technological achievements transformation, technology development, technology transfer, technical consultation, technical services and other activities;

(two) scientific and technological personnel accounted for more than twenty percent of the employees;

(3) R&D expenditure accounts for more than 3% of the total annual operating income;

(four) technical income accounts for more than 20% of the total annual operating income, or the sales income and technical income of products transformed from scientific and technological achievements account for more than 50% of the total annual operating income.

A newly established enterprise applying to be recognized as a private scientific and technological enterprise shall meet the conditions in Items (1) and (2) of the preceding paragraph. Seventh municipal administrative department of science and technology shall, within one month from the date of receiving the complete application materials of the enterprise, identify and issue the qualification certificate of the private technology enterprise; If it is not recognized, it shall explain the reasons in writing.

The qualifications of private scientific and technological enterprises are reviewed every two years. Those who fail to meet the requirements after examination shall be disqualified from private scientific and technological enterprises. Eighth private technology enterprises to change and terminate, should be reported to the municipal administrative department of science and technology for the record. Chapter III Rights and Obligations Article 9 Private scientific and technological enterprises shall enjoy the following rights:

(a) the autonomy of investment decision-making, production and operation, institutional setup, employment and income distribution;

(two) to apply for undertaking government science and technology projects;

(three) to apply for special funds for scientific and technological development, such as scientific and technological venture capital funds and technological innovation funds of Chinese and foreign enterprises;

(4) Applying for the right of import and export operation, the right of investment outside the country (territory) or setting up branches and sales outlets outside the country (territory) in accordance with the relevant provisions of the state;

(5) Introducing technology, talents, equipment and capital from abroad in accordance with relevant state regulations, and conducting joint ventures and cooperative operations with foreign investors;

(6) Applying for issuing bonds and stocks;

(seven) to participate in various appraisal and award activities;

(eight) refused to apportion, illegal fees and illegal inspection;

(nine) enjoy preferential treatment in accordance with the provisions;

(ten) other rights stipulated by laws and regulations. Tenth private technology enterprises shall perform the following obligations:

(a) to establish and improve the financial and statistical system according to law, and truthfully report the financial and statistical statements as required;

(2) Signing labor contracts with employees according to law, and handling various social insurances such as pension, medical care, unemployment and work injury for employees;

(three) recommend the employees of the enterprise to participate in the qualification evaluation of professional and technical positions;

(four) to organize the training of employees in this enterprise, improve the professional and technical level and quality of employees, and organize professional and technical personnel to receive continuing education;

(five) to establish and improve the system of labor safety and health protection and occupational disease prevention and control;

(six) support workers to establish trade unions according to law and safeguard the legitimate rights and interests of workers;

(seven) other obligations stipulated by laws and regulations. Chapter IV Encouragement and Support Article 11 Encourage and support scientific research institutes, institutions of higher learning and scientific and technological personnel to establish private scientific and technological enterprises with their own patents, proprietary technologies and other scientific and technological achievements.

Overseas students who set up private technology enterprises in the Overseas Students Pioneer Park shall enjoy preferential treatment in accordance with relevant regulations. Twelfth support overseas students and scientific and technological personnel to work in private technology enterprises.

Encourage private scientific and technological enterprises to apply for the establishment of enterprise postdoctoral research centers in accordance with regulations. Article 13 On-the-job scientific and technological personnel in scientific research institutes and institutions of higher learning can work part-time in private scientific and technological enterprises and get paid on the premise of ensuring the completion of their jobs and not infringing on their technical rights and economic interests. Article 14 The personnel relationship between the scientific and technical personnel employed by private scientific and technological enterprises and the graduates of ordinary universities and secondary specialized schools may be entrusted to the personnel exchange service institutions affiliated to the personnel administration department for management; Scientific and technical personnel who meet the requirements for talent introduction shall go through the transfer formalities after being approved by the personnel administrative department, and their spouses and minor children's accounts shall move in with the city according to the regulations, and the city capacity increase fee shall be exempted.