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Share Capital FAQs"Facts are cheap, information is plentiful - knowledge is precious" - Michael E. Angier
For incorporation of your Singapore Company, we have prepared a list of frequently asked questions by both foreign and local clients. You may also refer to ACRA, Singapore's Company Registry.
What is the minimum issued/paid up capital? The minimum paid-up capital is $1.00 (congruent with currency of paid up capital) and the indicated issued share capital must be paid immediately upon the company’s incorporation. Under the Singapore Companies Act, there is no minimum issued capital requirement except for financial institutions such as banks and insurance companies. Since the shares issued by Singapore incorporated companies have no par value or nominal value, the liabilities of the shareholders are measured by the amount of consideration, unpaid on the shares they hold. What is the permitted currency of share capital? Any currency. However, the issued shares must be in the same currency as the paid-up capital. Usually, the Singapore dollar is the preferred currency. What is the minimum authorised capital? The concept of authorized capital was abolished after the introduction of the Companies (Amendment) Act 2005. The Companies (Amendment) Act 2005 states that the shares of a company have no par or nominal value which applies to all shares that are issued before and after the amendment. As such, there is no requirement for a company to state the authorized capital. With the abolishment of the concept of par value and authorized capital, there is no problem of issuing shares at a discount or at a premium. |
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