Limited property rights as in-kind contributions

Abstract

In-kind contributions to companies’ capital often involve title to real estate property. Limited property rights or ownership right encumbered by existing limited property rights are less frequently encountered as subject of in-kind contributions. The case law and the legal doctrine is not uniform regarding the possibility to transfer limited property rights as an in-kind contribution into a company. Particularly controversial is the possibility of an in-kind contribution consisting of a limited right of use (usufruct). This article aims to review some of these arguments and to support the possibility for contributing limited property rights as capital contributions in companies, including the establishment of a right of use.