What do you mean by capital contribution?

Legal analysis

Capital contribution is the amount of capital contribution made by shareholders to the company, which is divided into subscribed capital contribution and paid-in capital contribution. Subscribed capital contribution refers to the amount of capital contribution that each shareholder of the company promises to pay to the company, and the sum of the capital contributions subscribed by each shareholder is the registered capital of the company after being registered in the company registration authority. The subscribed capital contribution shall be clearly recorded in the articles of association. Paid-in capital contribution refers to the actual capital contribution made by each shareholder in accordance with the Articles of Association. According to the provisions of national laws and regulations, shareholders can make capital contributions in cash, or in kind, intellectual property rights, land use rights and other non-monetary properties that can be valued in money and transferred according to law. The amount and time of capital contribution of registered shareholders are the paid-in capital contribution and the final payment time of all pledges at the time of registration, and the paid-in capital contribution and the final payment time of all contributions at the time of registration.

Legal analysis

Article 3 of the Company Law of People's Republic of China (PRC) is an enterprise legal person, with independent legal person property and legal person property rights. The company is liable for its debts with all its property. Shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; Shareholders of a joint stock limited company shall be liable to the company to the extent of the shares subscribed by them.