Legal analysis: Capital contribution can be in cash, in kind, intangible assets or services, equity or other forms. Non-cash investment needs to be evaluated and approved by shareholders. If the investor does not ask for compensation, it will be directly included in the capital reserve, but it cannot be recognized as part of the calculation of capital contribution ratio. Formula of contribution ratio = contribution of each shareholder/registered capital of the company. Capital contribution by shareholders means that shareholders (including promoters and subscribers) set up or increase the company's capital in order to obtain shares or equity, and deliver property to the company or perform other payment obligations in accordance with the provisions of the agreement, laws and articles of association.
Legal basis: Article 27 of the Company Law of People's Republic of China (PRC), 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. However, except for the property that cannot be used as capital contribution as stipulated by laws and administrative regulations. Non-monetary property as capital contribution shall be evaluated and verified, and its value shall not be overestimated or underestimated. Where there are provisions in laws and administrative regulations on evaluation and pricing, those provisions shall prevail.