Individuals, including foreigners, who wish to establish private limited companies in Singapore have the option to set a minimum paid-up capital of just S$1.00. However, certain businesses operating in regulated industries are subject to higher minimum paid-up capital requirements. For instance:
- Public accounting firms are required to have a minimum paid-up capital of S$50,000.
- Insurance intermediary firms must have a minimum paid-up capital of S$300,000.
There is an additional incentive for private limited companies to set their minimum paid-up capital at a higher amount. By having a minimum paid-up capital of S$500,000 or more, companies are automatically registered as members of the Singapore Business Federation (SBF). This membership provides access to various networking events, valuable contacts, and beneficial activities such as workshops and briefings.
The allocated funds in the paid-up capital can be utilized for business purposes without any restrictions, aside from compliance with company regulations. These funds are deposited directly into the company’s bank account, allowing for immediate use. This convenience is advantageous for new private limited companies. However, it is important to note that in the event of insolvency, all company assets, including the paid-up capital, will be utilized to settle outstanding liabilities. Therefore, it is essential to carefully consider the appropriate minimum paid-up capital amount, taking these factors into account.