The capital injection method is the capital contribution method, which refers to the form of investing funds to register a company or enterprise.
It also means that although in theory any type of property can be used to contribute capital, the form of capital contribution that is not expressly stipulated must be judged based on whether the capital contribution property meets the subject matter conditions for capital contribution in kind. That is, the subject matter must be certain, existing, capable of value evaluation, and independently transferable before it can be used for investment.
Types of investment forms (investment methods):
There are the following ways of capital injection:
First, currency. Setting up a company necessarily requires a certain amount of working capital. To cover the expenses of founding the company and starting its operations. Therefore, shareholders can contribute money.
Second, the real thing. In-kind investment is generally made in the form of machinery and equipment, raw materials, parts, goods, buildings and factories, etc.
Third, intellectual property rights. The so-called intellectual property rights refer to the civil rights that people enjoy over the fruits of their intellectual labor. Traditional intellectual property rights include trademark rights, patent rights and copyrights.
Fourth, land use rights. There are two ways for a company to obtain land use rights. One is that shareholders use the land use rights as a price and then contribute capital to the company so that the company obtains the land use rights; the other is that the company applies to the county or city-level land management department where it is located. After review and approval, the land use rights are obtained through a subscription contract, and the company pays site use fees in accordance with regulations. The former is a method of capital contribution by shareholders, but relevant procedures must be completed in accordance with the law.
Fifth, labor and credit investment. Although our country does not explicitly prohibit shareholders from making capital contributions in the form of labor services and credit, judging from the listed objects of shareholder investment, our country does not allow shareholders to make capital contributions in the form of labor services and credit to limited companies and joint-stock companies. Article 16 of my country's "Partnership Law" stipulates: "Partners may contribute capital in currency, physical objects, land use rights, intellectual property rights or other property rights, or they may contribute capital in labor services." It can be seen that a partnership enterprise can contribute capital in labor services.