Paid up Capital in Foreign Owned Companies in Singapore

Singapore is one of the most inexpensive places where you can incorporate a company as a foreign business owner. As part of its drive to remain the easiest place to do business in the world, Government of Singapore has ensured innovative companies do not have to face capital hurdles when registering their business in the country. That is why the minimum paid up capital requirement for any foreign owned business in Singapore is only SGD 1. Companies are allowed to list the amount of paid up capital they wish to have in their newly formed business as per their specific situation and working capital requirements. There is no government interference on minimum capital requirements etc.

However, while the minimum paid up capital for a foreign owned company in Singapore is only SGD 1, for individual foreign entrepreneurs that wish to relocate to the country after their company setup the minimum paid up capital requirement is at least SGD 50,000. Note that this requirement is only if the foreign business owner wants to move to Singapore to manage their business in the country. If they want to manage the company from outside Singapore and only visit the country periodically on company matters, the paid up capital can be as low as only SGD 1.

Whatever the amount you list as paid up capital in your Singapore Company, you need to ensure that the amount is transferred immediately after company registration. Basically after the incorporation procedure is over which normally takes about one or two working days, you need to proceed to opening a corporate bank account. You can choose a bank that provides the services you need and open a business account with them. Moment the company account has been opened with the bank of your choice, you need to initiate transfer of funds to this account. Funds transferred should be at least the amount you listed as paid up capital during company incorporation.

Paid up capital can also be increased at any point after the registration of the business has been completed. Increase in paid up capital in Singapore is extremely simple and all you need to do is inform the concerned authorities and pass a resolution or declaration stating the increase in paid up capital. After this, simply inject the required funds in to your corporate bank account and that is it. The company secretary can handle all the required formalities and it hardly takes a few days for the entire procedure to be completed.

Author Bio
Bryan Wong is a business analyst in the Asia-Pacific region and in his free time writes business articles. In this article, Bryan talks about Singapore corporate secretarial agent and How to incorporate a Singapore company.