The Share Capital of a PLC in Singapore
Updated on Tuesday 24th March 2020
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A private limited company in Singapore (PLC) is easy to incorporate and the minimum investment or minimum share capital is not burdensome for investors. The share capital of a PLC in Singapore is only SGD 1, payable upon incorporation.
In some cases, some businesses are required to follow the prescribed minimum share capital, however, this applies only in some cases. One of our agents who specialize in the setting up a private limited company in Singapore can provide investors with complete information on these cases.
What are the share capital requirements in Singapore?
The paid-up capital of a private limited company in Singapore is the initial value submitted for the formation of the company. This is the amount invested by the shareholders in exchange for shares in the company. The laws in Singapore allow the company to issue shares even when the share capital is not fully paid up. This means that the capital can be divided into paid-up capital and unpaid capital.
Most companies in Singapore are incorporated with a paid-up capital. Only in some cases, for small companies, for example, the share capital will remain partly unpaid.
What are the types of shares for a Pte Ltd in Singapore?
A company in Singapore can issue a number of types of shares, as listed below:
- Ordinary: these are the ones that are issued by all companies; they offer the right to vote, receive dividends and claim remaining assets if the company is liquidated.
- Preference: these can allow the shareholders to have special rights, such as for the payment of dividends.
- Non-voting: while the ordinary shares allow voting, these do not allow the holder to participate in the general meetings and vote.
- Redeemable: issued when the company will buy back the share in the future.
- Others: these can include management shares with additional voting rights or deferred shares when no dividend payment is made until a minimum amount has been paid to other shareholders.
In order to open a Singapore limited company, a minimum of one shareholder is required. The maximum number is 50. The shareholders can be natural persons, as in most cases, or they can be other corporations. The shares of a company can be issued in any currency. However, in practice, companies will issue their shares in Singapore dollars.
The shares are issued when an ordinary resolution of the shareholders is passed and the company files a return of allotment. The latter is filed with the Accounting and Corporate Regulatory Authority within 14 days after issuing the shares. This document includes information about the number of shares in the allotment, the class of shares, the name and identification details for the shareholders and the number and types of shares owned by each of the shareholders. One of our agents can provide investors with more details on the issuance of shares.
A company in Singapore can be fully owned by foreign shareholders.
What are the general requirements for a private limited company?
As highlighted in this article, setting up a private limited company in Singapore is a simple process and one that does not imply a minimum share capital with a high value. Nevertheless, although there is no mandatory requirement for minimum capital, investors do need to follow some general rules:
- - company name approval: the proposed name for the company needs to be approved before registration; it needs to be a unique one.
- - company director: it is mandatory to appoint at least one resident director for the company.
- - company secretary: investors are required to appoint a qualified company secretary who is a resident within six months from registering the company.
- - registered address: the company needs to have a local address in Singapore; this can be a residential or a commercial address.
The basic costs for opening a private limited company in Singapore are listed below:
- SGD 1: as previously stated, this is the common value for the share capital upon incorporation; it can be increased afterward.
- SGD 15: the name application fee for the proposed company name.
- SGD 300: the company registration fee with the Accounting and Corporate Regulatory Authority (ACRA).
These are only the fees for the incorporation of the company. During the year, the company will also pay the annual filing of SGD 60 and other taxes.
Our team of agents who specialize in the registration of a private limited company in Singapore can provide investors with complete details related to the startup costs. Contact us for more information about the incorporation procedure and details about our services.