Sometimes it can be tricky if you are not aware with share capital provisions in Singapore. Here are few points you must be aware of:
- Minimum no of shares- one share
- Currency- any currency in the world
- Value per share- any value per share
- It is recommended that per share value should be kept not less than 0.0001 as IRAS only supports 4 digit figures after decimal for online e-stamping for transfer of shares. If you have per share value of less than hundredth of a cent, you will need to go for physical stamp duty adjudication with IRAS.
- Premium/discount on shares not allowed. i.e. there is no par value of shares. The price per share will be the total amount payable for those shares.
- No concept of authorized capital- Companies do not have authorized capital and can increase their capital up to any amount without any limitation by way of share allotments.
- Share capital can be in multiple currency. A company can have a portion of its share capital in one currency and remaining in another (one or more) currency(ies).
- ACRA (Registrar of Companies) keeps records of only broad classes of shares (equity/preference/others) and records of subcategories (such as equity/preference class A, equity/preference class B etc) are held internally by Company.
- Treasury shares are allowed- Company can hold its own shares.
- Bearer shares are not allowed.
- In Singapore, preemptive rights of shareholders of private companies are not provided by statute but by constitution documents only. I know its a bit technical. If you can understand this, we can be associates or friends. If you can’t understand this, I can be your consultant.
Any queries are welcome if you have doubts. Just fill in the form below 🙂