To incorporate in Singapore, a company requires a minimum of one share, $1 paid-up capital, one shareholder, one local resident director, and a local registered address. The shares of a company not only designate the ownership of the company but also provide rights, privileges, and responsibilities to the shareholders. Shares can be issued in any major currency.
Paid-up capital refers to the money that shareholders have paid in full for the issued shares. In other words, paid-up capital refers to the amount that has been paid on shares that have been issued by the company. These shares may be ordinary shares, preference shares or some other class of shares. Higher capital requirements may be mandated by various regulatory hurdles; for example, companies opened on an EntrePass require paid-up capital of 50,000 SGD.
Paid-up capital has to be deposited into the company’s corporate bank account, and hence has to be in cash. Where shares are issued for non-cash consideration (e.g. in exchange for expertise and service), an equivalent dollar-value must still be paid into the company’s bank account.