Restriction and Risk for Making Capital Contributions in the Term of Land Use Right
In accordance with “Company Law” and relevant regulations, the investor may make capital contributions (“CC”) in other non-currency properties that may be assessed on the basis of currency and may be transferred according to law, excluding the properties that shall not be treated as CC according to any laws or administrative regulations. In view of this, it has the possibility to make CC in the term of land use right (“LUR”) in principle. However, legally transference is the key element in deciding whether the special LUR can be used to make CC. In practice, the possibility and risks of the…