Issued & Paid-Up Capital
When incorporating a Singapore company, it is good to understand the difference between the issued share capital and the paid-up share capital.
Issued Share Capital
On behalf of the company's largest financial commitment that the shareholders have promised and are willing to bear
The registered capital of Singapore companies starts at 1 SGD with no ceiling. There is no strict time limit for the full payment of registered capital of Singapore companies and no stamp duty is levied.
Paid-Up Capital
It refers to the amount of money that was actually injected into the company after the shareholder took up the financial responsibility.
There is no requirement for capital to be "in place", meaning, deposited into the company's bank. However, if the capital is not fully paid, the debts are borne by shareholders. At the same time, if you want to apply for a permit, the capital needs to be in place.
What is the difference between registered capital and paid-in capital? Are the two equal?
Answer: The actual capital should in principle be the same as the registered capital. If it is not fully paid, it will be regarded as a director's loan.
Can Singapore companies increase their issuing capital after their establishment?
Answer: Yes, you may increase the Issuance Capital at will. However, you must hold a general meeting and pass a resolution to increase the Issuance Capital; then submit the resolution to the relevant Singapore government department together with the completed form and the appropriate fee.