Paid-Up Capital in Singapore: How Much Your Company Really Needs (2026)

One of the first questions on any incorporation form is how much share capital the company will have. Founders often worry that Singapore requires a large deposit. It does not. But choosing a number that is too low can cause problems later with banks, work passes, and licences.

The Legal Minimum

A Singapore private limited company can be incorporated with as little as one share issued for one dollar. There is no requirement to deposit capital before incorporation, and capital can be denominated in Singapore dollars, US dollars, or any other currency.

Issued Capital vs Paid-Up Capital

Shares can be issued as partly paid, but most small companies issue fully paid shares so that issued and paid-up capital are the same.

How Much Should You Actually Start With?

The legal minimum is rarely the right answer. Consider these practical factors:

1. Corporate bank account

Banks look at whether a company can fund its early operations. A token amount of capital is not a legal problem, but banks may ask how the business will pay its costs and where the money will come from.

2. Employment Pass or EntrePass

If you plan to relocate on an Employment Pass, MOM assesses whether the company can pay your salary. A company with meaningful capital or funding makes that case easier. The EntrePass has its own funding and business criteria.

3. Licences

Some regulated activities, including fund management, payments, and certain trading or employment agency businesses, have their own capital or financial requirements set by the regulator. Check them before incorporating.

4. Customer and supplier credibility

Paid-up capital appears on the company's public business profile. Large customers and suppliers sometimes use it as a quick signal of commitment.

5. Limited liability

Shareholders' liability is generally limited to the amount unpaid on their shares. Issuing shares as fully paid keeps that exposure clear.

Paying In the Capital

After incorporation and bank account opening, shareholders transfer the subscription money into the company's account. Keep the bank records, as your accountant will use them to confirm the paid-up amount in the financial statements. Capital can also be paid with assets, such as equipment or IP, if properly valued and documented.

Increasing Paid-Up Capital

1. Directors propose a share allotment, usually needing shareholder approval under the constitution.
2. The subscriber pays for the new shares.
3. The company lodges a return of allotment with ACRA within 14 days.
4. The register of members and share certificates are updated.

For Indian or other foreign shareholders, check home-country rules before sending funds. Indian residents, for example, must follow the FEMA ODI rules for every capital injection.

Reducing Share Capital

A private company can reduce its capital, for example to return surplus cash to shareholders, through a special resolution supported by a directors' solvency statement or through a court-approved process. It involves more formalities and creditor protections than an increase, so plan capital carefully from the start.

Conclusion

Singapore sets almost no minimum capital, which gives founders flexibility. The right number is the one that supports your banking, work pass, and licensing plans without locking up cash you do not need.