Share Capital
Share capital is the amount shareholders have committed to invest in a company in exchange for shares. It can be issued with or without full payment upfront. A company that requires share capital needs at least S$1 to start, and must issue at least one share.
Issued, paid-up and unpaid capital
- Issued share capital: the value of shares allotted to shareholders
- Paid-up capital: the amount shareholders have actually paid for those shares
- Unpaid capital: the amount shareholders have committed but not yet paid
Paid-up capital cannot exceed issued capital. For example, if a company issues shares worth S$100,000 and shareholders pay 50% upfront, issued capital is S$100,000, paid-up capital is S$50,000, and unpaid capital is S$50,000.
How much is needed
ACRA sets no minimum beyond S$1 for a private company, whether or not it is foreign-owned. Founders often start higher to show financial credibility to banks and clients, since paid-up capital appears on the company’s Business Profile. Companies with paid-up capital of S$500,000 or more automatically become members of the Singapore Business Federation, per ACRA.
Changing share capital
A company can increase its capital by issuing new shares, which needs the required approvals, and can ask shareholders to pay up any unpaid amount. Reducing capital follows a formal process under the Companies Act, including shareholder approval and a declaration of solvency, so check ACRA’s guidance first.
Share capital is set during company incorporation. HeySara’s team can advise on the right structure for your business.
