Labor investment is limited to specific enterprise types. According to the provisions of Articles 16 and 64 of China's Partnership Enterprise Law, partners may make capital contributions in cash, in kind, intellectual property rights, land use rights or other property rights, or in labor services, but limited partners may not make capital contributions in labor services. In a non-partnership enterprise organization, labor service contribution shall not be agreed, otherwise legal disputes may arise because labor service contribution has no legal effect.
Labor contribution method is as follows:
In the company's investment, there can be labor contribution, but this kind of labor must belong to intellectual labor, not manual labor. As for the partnership, it is an enterprise with different nature from the company. The company shall bear limited liability for the property, and the partnership shall bear unlimited liability for the property. The investor of a company can be called a shareholder, and the investor of a partnership can only be called a partner. As for the labor investment in the company's investment, the shares that can be converted into cash through consultation or evaluation with shareholders belong to intangible assets investment. This law is based on the Company Law of People's Republic of China (PRC) (China).
To sum up, the general partner of a partnership can contribute capital by labor services. Labor investment is limited to specific enterprise types.
Legal basis:
Article 27 of the Company Law of People's Republic of China (PRC)
Shareholders can make capital contributions in currency, or in kind, intellectual property rights, land use rights and other non-monetary properties that can be valued in currency 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.
Article 28
Shareholders shall pay their respective subscribed capital contributions in full and on time in accordance with the Articles of Association. Where the shareholders make capital contributions in cash, they shall deposit their capital contributions in full into the account opened by the limited liability company in the bank; Where non-monetary property is used as capital contribution, the formalities for the transfer of property rights shall be handled according to law. Where a shareholder fails to pay the capital contribution in accordance with the provisions of the preceding paragraph, he shall be liable for breach of contract to the shareholder who has paid the capital contribution in full and on time.