Deciding on Paidup Capital Injection

You can incorporate a company in Singapore with a minimum paid-up capital (also often known as share capital) of S$1 only. However, you must keep the following in mind:

1. If you are applying for relocation visa Entrepreneur Pass (EntrePass), the company must have a minimum paid-up capital of S$50,000.
2. If you are applying for relocation visa Employment Pass (EP), although there is no official minimum paid-up capital requirement, we recommend a paid-up capital of at least S$50,000 in order to improve chances of EP approval.
3. If the company business is a regulated business (e.g. travel agency, recruitment agency, financial services, etc.), the minimum paid-up capital requirements will be dictated by the relevant licensing requirements.

The concept of authorized capital has been abolished in Singapore. The paid-up capital can be listed in Singapore Dollar or any other major currency, although Singapore Dollar is the preferred currency of choice as a matter of convenience. Whatever capital you list is treated as paid-up capital and you will be required to inject this amount into the company. Paid-up capital of the company can be freely utilized towards company's business needs. There is no requirement for this money to be locked in the bank account for any specific period of time.

If you want to list a paid-up capital higher than the minimum S$100, you have two options:

Option 1: List a higher paid-up capital at the time of incorporation
Keep in mind that whatever paid-up capital amount you list, will need to be deposited into the company's bank account. Since we will be acting as your company secretary, we carry certain fiduciary responsibilities in this matter and have to ensure that the necessary paid-up capital is in fact injected into the company. Therefore, if you wish to list a paid-up capital higher than S$100 at the time of incorporation, we will require you to deposit that money with us first. Once your company bank account is open, we will transfer the paid-up capital amount into your company's bank account.

Please note that as a Hawksford policy, the maximum paid-up capital that we can accept under this option is S$100,000. For paid-up capital higher than S$100,000, you will need to choose option 2.

Option 2: Increase paid-up capital after registration of the company
Under this option, you can increase the paid-up capital any time after registration of the company. In this case, the process is as below:

1. Incorporate the company with minimum share capital
2. Open corporate bank account
3. Inject funds into bank account
4. Prepare documents for increase of share capital
5. File documents for share capital increase with authorities

We will then prepare and file the necessary paperwork with Company Registrar to reflect the revised paid-up capital of the company. Note that a fee will apply for for additional work that has to be undertaken for items 4 & 5.

Most of our clients prefer Option 1 because it does not cost extra and is faster. Your paid-up capital amount is deposited into a separate 'Client Deposits' account with us and transferred immediately to your corporate bank account once it's open. This service is provided by Hawksford for the sole benefit of clients only.

Let us know which option is preferred by you.