The Xiamen government recently rolled out a set of incentives to encourage incubators for small and medium-sized companies, start-ups, and self-employed people.

City-level incubators that have operated for no more than a year are entitled to a 200,000 yuan ($31,500) subsidy. The subsidy is 300,000 yuan for those that have operated for two years, and 400,000 for those that have operated for up to three years, according to guidelines.

An incubator can get 200,000 yuan for helping five to 10 projects companies to get financing registered, 300,000 yuan for helping up to 20 projects companies; and 500,000 yuan for helping more than 20.

Incubators at State-owned properties can get rents reduced or remitted for two to five years, and those operating at non-State-owned properties can get subsidies to cover their rents: 30 yuan per square meter per month in the first year, 20 yuan per square meter per month for the second, and 15 yuan for the third year.

Incubators will be compensated for 50 percent of the money they pay for software and equipment, capped at 300,000 yuan each year.

Incubators providing free broadband Internet can get 50 percent compensation for their network service costs. If an incubator rents a data center service, it can get a 30 percent refund on rent, with a cap of 300,000 yuan each year.

The government is also encouraging companies to convert commercial buildings, plants, storage and logistics facilities into incubators. It offers a 200-yuan per square meter subsidy for each converted project, with a cap of 2 million yuan.