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Investors ask, lawyers answer

Investors ask, lawyers answer

Investors ask, lawyers answer

Investors ask: If the land user pays annual rent, do they have the right to contribute capital equals the value of land use right to investment project?
Lawyers answer: Under the provisions of th 2003 Land Act, for land users who pay annual rent,  users only have the right to contribute capital by their assets related to leased land.

In addition, when contributing capital, the purpose of using land is also based on. For example, the Certificate of land use right stipulate that land users only use land in order to product small trucks and pickup trucks. When they contribute capital by the land use right in order to establish a factory specialized in headphone production that is unsuitable with the original purpose of using land.

To perform the capital contribution by the land use right, land users must operate two following things:
- Transfer leased land into land fee collection land.
- Transfer the purpose of using land into headphone production.

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