High-tech enterprises are divided into Research & Development base (R & D), Production and Service-oriented, three(3) categories.
- (1) R & D type: It refers to human, material and financial resources that focused on research, development of knowledge and technology services, relying on their own research, or apply scientific and technological achievements for subsequent foreign technology and product development, for the formation of productive capacity, it is expected to be shaped to produce scale enterprises.
- (2) Production type: It refers to those mainly using advanced technology or production equipment, innovative and forming a production capacity of such kind of enterprises.
- (3) Service-oriented type: It refers mainly to those providing knowledge and technology consulting, technology transfer, technical trading, export of technology, design, investment and financing services, outsourcing and other business activities that engaged in value-added services and information services business.
Research and Development (R & D) base, high-tech enterprises shall comply with the following conditions:-
- (1) It is principally engaged in the scope as authorized under the article, within one or more of its high-tech product development, production or to provide technical services.
- (2) It has clear property rights and an independent corporate qualification.
- (3) Its intellectual property rights vested clear.
- (4) It has a sales revenue, its high-tech product sales revenue and the sum of technical income year sales income get into more than 50% and the high-tech enterprises and their products, a year for research and development expenditures for that year attributable to the total enterprise for more than 3% of sales revenue ; yet sales revenue of the enterprise, its products a year for high-tech research and development expenses enterprises with an annual gross expenditures shall account for more than 30% expenses.
- (5) The enterprises have a college education scientific and technical personnel accounting for over 30% of the total number of employees, of which it engaged in high-tech products research, development, technical services, scientific and a group of technical personnel of the total number of employees attributable to more than 10% and has specialized in research and development or technical services.
- (6) It has a corporate charter and rigorous technical, financial and other management systems.
Productive high-tech enterprises shall comply with the following conditions:-
- (1) It is principally engaged in the scope set out in its first article, an identified one or more areas of high technology and its product development and production.
- (2) It has clear property rights and an independent corporate qualification.
- (3) Its intellectual property rights vested clear.
- (4) The enterprise sales income are of RMB 500 million and the sales of high-tech products of the production enterprises accounted for 50% of the total sales revenue or more.
- (5) The high-tech enterprises and their products, during the year for research and development expenditure, as a percentage of total sales revenue of the business year, is more than 1%.
- (6) The companies have a college education scientific and technical personnel accounting for more than 8% of the total number of employees, which engaged in high-tech products research and development of scientific and technical personnel accounting for more than 3% of the total number of employees and a dedicated research and development institutions.
- (7) The main business of the enterprise’ responsible person is familiar with the research, development, production and management, and the importance of technological innovation of the enterprise industry are full-time staff.
- (8) It has a corporate charter and production, technical, financial and other management systems.
- (9) It has a corresponding development, production conditions and product quality assurance measures.