FAQ’s on Paid-up Capital

Questions

1. What is paid up Capital?
2. What is the minimum paid up capital requirement for a company in Singapore?
3. Is there authorised capital in Singapore?
4. When must I pay the paid up capital and where?
5. What will be my liabilities if I have high paid up?
6. What is the legal Currency for paid up?
7. What is the procedure for increasing paid-up capital at a later date?
8. After we have injected the money into our company as paid-up capital, how soon can we start using it towards business expenses or investment?
9. Can we use non cash consideration to increase the paid-up capital of our company?

Answers

1. Rating: +0

   

   What is paid up Capital?

   Paid-up capital is essentially the portion of share that the company has issued and received payment for in full.

2. Rating: +0

   

   What is the minimum paid up capital requirement for a company in Singapore?

   A Singapore company can be registered with a minimum paid up capital of SGD $1 (Or its equivalent in any currency).

3. Rating: -1

   

   Is there authorised capital in Singapore?

   Singapore has abolished authorised capital requirements for a Singapore company

4. Rating: +0

   

   When must I pay the paid up capital and where?

   The issued share capital must be paid up immediately upon incorporation into the corporate bank accounts.

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   What will be my liabilities if I have high paid up?

   If in an unfortunate event the company goes bust, the creditor can inspect the company accounts and lay their claim for the balance paid up, if it has not been utilized.

6. Rating: +0

   

   What is the legal Currency for paid up?

   The paid up can be of any legal currency.

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   What is the procedure for increasing paid-up capital at a later date?

   You will first need to inject the necessary capital into your company bank account and send us a copy of the bank deposit slip showing the capital injection.

   Upon receipt of the proof of capital injection, we will prepare the documents and lodged with the corporate authorities.

   Upon obtaining your signature on the above documents, we will be able to lodge them with ACRA and get an updated company profile showing the revised paid-up capital for your Singapore company.

8. Rating: +0

   

   After we have injected the money into our company as paid-up capital, how soon can we start using it towards business expenses or investment?

   There is no lockup period as such. You can start using it towards your company needs immediately.

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   Can we use non cash consideration to increase the paid-up capital of our company?

   Yes, non cash consideration such as fixed assets can be used as consideration provided sufficient evidence of the valuation of the assets are provided.