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What can a limited company not contribute

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What can a limited company not contribute


        

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  • 2024-06-19 15:01:41

    The shareholders of a limited liability company may make capital contributions in currency, or in kind, industrial property, non patented technology, or land use rights at a fixed price. The rest cannot be contributed.
    Physical objects refer to tangible property such as houses, equipment, tools and raw materials;
    Industrial property rights are intangible assets, including patent rights and trademark exclusive rights; Non patented technology refers to technical know-how not shown in the form of patent right;
    The right to the use of land refers to the right to use state-owned land and land collectively owned by farmers, which is clearly given to units or individuals according to law.
    Among the capital contributions made by the shareholders of a limited liability company, the amount of the capital contribution in the form of industrial property rights or non patented technology shall not exceed 20 percent of the registered capital of the limited liability company, unless the State has special provisions on the adoption of high-tech achievements. The purpose of such restrictions in the company's capital contribution composition is to ensure the reasonable composition of the company's capital, which is conducive to the normal operation of the company. However, the adoption of high-tech can still be relaxed and supported.
    Legal basis: Article 27 of the Company Law
    Shareholders can make capital contributions in currency, or in kind, intellectual property, land use rights and other non monetary properties that can be valued in currency and transferred according to law; However, the property that shall not be used as capital contribution according to laws and administrative regulations is excluded. The non monetary property used as capital contribution shall be evaluated and valued, and the property shall be verified, and shall not be overvalued or undervalued. If laws and administrative regulations have provisions on evaluation and pricing, such provisions shall prevail.

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