According to the Guangdong provincial government, the deadline for the third batch of eligible enterprises to apply for Guangzhou’s high-tech enterprises falls on August 23.

If identified as a national high-tech enterprise, the enterprise can enjoy the following benefits:

(1) The enterprise can enjoy a reduced corporate income tax rate of 15 percent, and an additional tax deduction for research and development expenses;

(2) Financial incentives up to one million yuan ($154,218) can be obtained;

(3) The brand image of the enterprise can be enhanced;

(4) The title helps enterprises to expand domestic and foreign markets, as an important qualification for enterprises when bidding;

(5) The enterprise can be more attractive when applying for talent introduction;

(6) The enterprise can have easier access to venture capital and major bank loans;

(7) The title is one of the important reference conditions for corporate listing and financing.

To apply for a national high-tech enterprise, an enterprise must fall into the "eight major fields":

A qualified applicant of high-tech enterprise shall be listed in the Key High-Tech Fields Supported by the State, continue to conduct R&D, transform technological achievements and form their core independent intellectual property rights. Undertaking business operations on this basis, the enterprise should be registered in the Chinese mainland.

The key high-tech areas supported by the State include: 1) electronic information technology; 2) biological and new medical technology; 3) aerospace technology; 4) new material technology; 5) high-tech services; 6) new energy and energy saving technology; 7) resource and environment technology; 8) advanced manufacturing and automation.

To apply for a national high-tech enterprise, an enterprise must meet the following eight conditions:

The enterprise should have been established for more than one year;

The enterprise should own the intellectual property rights that play a core supporting role in the technology of its main products (services);

The technologies that play a core supporting role in the enterprise’s main products (services) shall fall within the scope specified in the Key High-Tech Fields Supported by the State;

(4) The proportion of scientific and technological personnel engaged in R&D and related technological innovation activities of the enterprise shall not be less than 10 percent of the enterprise’s total number of employees in the current year;

(5) The proportion of the total R&D expenses of the enterprise in the last three years and the total sales revenue in the same term shall meet certain requirements;

(6) The revenue of high-tech products (services) in recent years shall account for no less than 60 percent of the enterprise’s total income in the same period;

(7) The innovation capabilities of the enterprise shall meet certain requirements;

(8) There has been no severe work safety accident, major quality problem or serious environmental violation in the enterprise within the previous year.