How Much Do You Know About Paid-Up Capital for Company Registration in Singapore? The Truth Revealed

Do you know the default share capital setting for company registration in Singapore? A Deep Dive into the Story Behind Share Capital

Singapore is a preferred destination for global entrepreneurs due to its low startup barriers and business-friendly environment. However, many entrepreneurs have misunderstandings or lack awareness about the concept of share capital, especially regarding the default capital setting. This article will provide an in-depth analysis of share capital settings during company registration in Singapore, based on practical operations and recent news and policy updates.

According to the Accounting and Corporate Regulatory Authority ACRA of Singapore, every new company must set a paid-up capital at the time of registration. This refers to the total amount of capital that shareholders have committed to contribute. However, it is important to note that Singapore does not have a mandatory minimum share capital requirement. Entrepreneurs can freely choose the amount of share capital, even setting it to zero at the initial stage.

In practice, most companies set a reasonable share capital, usually 10,000 SGD or higher. This is because some banks require a minimum share capital of 10,000 SGD when opening a corporate bank account, to ensure the company's financial stability. Some clients or partners may also use the share capital to assess a company's strength, although this is not an official standard.

In recent years, with increasing support for small and medium enterprises SMEs, more startups are choosing to establish their businesses in Singapore. According to a report by The Straits Times in May 2025, the number of new companies registered in Singapore increased by 12% in the first quarter of 2025, with approximately 65% of these companies choosing the standard configuration of 10,000 SGD as their share capital.

So why is share capital so important in practice? First, it affects whether a company can open a bank account. For example, major banks like DBS and OCBC require a minimum share capital of 10,000 SGD, otherwise the account opening process may be denied. Second, share capital also influences a company's ability to raise funds. If the share capital is too low, investors may perceive the company as lacking financial strength, which could affect future financing.

Share capital is also related to tax reporting. According to the Inland Revenue Authority of Singapore IRAS, companies must report their actual paid-up capital when filing annual taxes. Although share capital does not directly determine the amount of tax payable, it is part of the company's financial structure and must be reported truthfully.

It is worth noting that while share capital can be increased later, any adjustment after the initial setting requires submitting a formal application to ACRA and paying the corresponding fees. Therefore, setting a reasonable share capital at the early stage of company registration is particularly important.

In recent years, Singapore has continuously optimized the company registration process and simplified regulations related to share capital. For example, since 2025, ACRA has allowed companies to quickly adjust their share capital through electronic means without having to visit the office frequently. This policy has greatly improved the flexibility of company operations.

Additionally, for overseas entrepreneurs, Singapore has introduced various support programs, such as the Entrepreneur Pass and Employment Pass, encouraging foreigners to start businesses in Singapore. These policies have further promoted the diversification of share capital settings.

According to data from Enterprise Singapore, in the first half of 2025, over 3,000 foreign companies established branches or subsidiaries in Singapore, with most choosing a share capital range of 10,000 to 50,000 SGD. Of course, many entrepreneurs also choose to set the share capital at 0 SGD to reduce initial financial pressure. However, this approach carries certain risks. For instance, if a company fails due to poor performance, shareholders may still bear some responsibility, especially in cases involving debt disputes.

It is recommended that entrepreneurs set the share capital reasonably based on their business scale and development plans. While the share capital setting in Singapore company registration may seem simple, it actually involves many details and considerations. Whether to meet the requirements of bank account opening or to enhance the company's image, share capital is an important aspect that cannot be ignored.

With the continuous improvement of Singapore's business environment, the flexibility of share capital-related regulations is expected to increase further in the future, providing more convenience for entrepreneurs. If you are considering registering a company in Singapore, it is advisable to understand the relevant policies in advance and make a reasonable decision based on your own situation. At the same time, you can also seek the help of professional consultants to ensure a smooth registration process.