Chengdu has recently implemented a policy on accelerating the development of chain operation. Under the policy, chain-operated enterprises in the food, general merchandise, home electrical appliance and catering sectors in all districts and counties under the city's jurisdiction can enjoy a series of incentives in registration and administration.
For qualified chain-operated enterprises with headquarters in Chengdu wishing to set up distribution centres or own-operated chain stores in the city, the outlets may apply for registration by presenting photocopies of the approval document (or licence) instancing the headquarters' right to deal in pertinent commodities while the headquarters will report the application to the relevant approving authorities for filing. For chain-operated enterprises with headquarters outside of Chengdu wishing to do the same, application for registration may be made direct to the local industrial and commercial administration by presenting photocopies of the business licence.
Chain enterprises with over 70% of their total income derived from core business in a given year may apply for a 15% reduction in enterprise income tax until 2010. Chain enterprises that introduce information management systems, technological logistics distribution centres or technological transformation of equipment for raw, fresh or cooked food may have their enterprise income tax rebated or exempted upon meeting relevant rules. Key chain-operated enterprises may also enjoy loan interest subsidy on the capital required for developing informationisation and commodities distribution centres.
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