It was reported in Jilin Administration for Industry and Commerce that Jilin recently introduced 12 new polices to support the development of emerging industries according to the Opinions of Jilin Provincial Government on Accelerating the Cultivation and Development of Strategic Emerging Industries (hereinafter referred to as the Opinions). It definitely provides for the first time that there will be no limit in the proportion of non-monetary contribution when companies increase registered capitals.

Under the Opinions, Jilin will support strategic emerging industries to absorb social capitals and  guide various social capitals to enter ten emerging industries---bio-chemical, electronic information and new materials, to name a few---in means of equity contribution. As for technology investment which requires no registration of ownership, such an investment can be deemed as the first contribution to the above-mentioned emerging industries on the basis of asset evaluation. As for restructured emerging industries across region and across industry, they will get access to "register direct", enjoying "one-stop, one package" services to ensure the successful reconstruction.
 
It also provides that investors are encouraged to start strategic emerging industry companies by means of non-monetary contribution such as intellectual property. Non-monetary contribution can account for at most 70% of registered capital; and there will be no limit in the proportion of non-monetary contribution to registered capital company newly increases.

In addition, emerging industry companies are encouraged to award outstanding scientific and technical personnel with business shares. Equity incentives such as incentive option can be registered.

As for shareholders being deemed as Chinese natural persons of emerging industry companies acquired by foreign investors, they can maintain their shareholder status. Community organizations and consortium organizations in foreign countries or regions are allowed to share and hold equities in emerging industry companies.

(Source:IPR in China)