What is paid-up capital?
Paid-up capital is money shareholders have paid for their shares. It belongs to the company and can be used for legitimate business spending. It is not an agency fee or a deposit that must always remain untouched. Available cash changes as the company receives and spends money.
Minimum share capital and operating funds
A company can generally be registered with low share capital, but that does not establish how much funding an actual business needs. There is no verified universal $100,000 founder-capital requirement in MOM’s EP criteria. Banks and regulated industries can have their own requirements. A low capital amount is not an automatic failure, since lawful funding may also include loans or revenue.
Build a cash-flow budget.
- Salary and employer-related expenses.
- Rent, technology, licences, insurance and professional services.
- Stock, project mobilisation or supplier payments.
- The timing of customer receipts and a realistic reserve.
- Reliable sources of equity, loans or other lawful funding.
Compare the budget with actual available funds. A high historic paid-up-capital figure cannot prove the company still has that cash or can afford future salaries.
Check requirements for your sector.
BCA is one example where explicit capital and net-worth requirements apply. For ordinary ME L1, both are $50,000; builder licensing uses a separate table. Other categories can differ. Do not apply BCA thresholds to every company or treat a bank statement alone as proof of net worth.
Can you increase capital later?
Further share funding may be possible through the proper corporate approvals and filings. Keep the source and payment records. Calculate the funding needed for salaries, rent, suppliers and other operating costs. This may be more than the statutory minimum share capital.
Build a cash budget rather than choosing a round number
| Budget item | What to estimate |
|---|---|
| Income | When customers are expected to pay, not only the contract’s total value. |
| Operating costs | Salary, rent, suppliers, professional services and required licences. |
| Setup costs | Registration and separately quoted work-pass, banking or website work. |
| Reserve | Funding needed if sales or account opening take longer than planned. |
A company can have paid-up capital on its records while much of that money has already been spent. Prepare the present cash position separately. If funding comes through a shareholder loan or another lawful source, record its terms and supporting transfers rather than relabelling it as share capital.
There is no universal founder EP approval amount established by choosing a capital figure. For BCA, however, the applicable registration or licence can impose specific financial requirements. Read L1 requirements when that is the reason for the capital decision.
Frequently asked questions
Does SGD 100,000 capital guarantee an EP?
No. Capital alone does not establish the role, candidate eligibility or business ability to sustain the salary.
Is capital an agency fee?
No. Paid-up capital belongs to the company in return for shares.
Is $100,000 mandatory for every founder EP?
MOM does not specify a $100,000 capital minimum for every founder EP. Check the company’s funding needs and any rules for its business sector.
Official sources
Related guides
Enquire about company setup
Tell us what the business will do, who will own it and whether you need a work pass.