How much paid-up capital do you actually need?

Singapore allows companies to be incorporated with just $1 in paid-up capital, but is that enough? The answer depends on your business goals and target customers.

Paid-up capital represents the amount shareholders have invested into the company. While there's no minimum requirement for most businesses, having too little can impact your company's credibility with banks, landlords, and potential clients.

Banks often look at paid-up capital when assessing credit facilities. Government tenders may require minimum paid-up capital. Some industry licenses have specific capital requirements.

For most startups, we recommend starting with $1,000 to $10,000 in paid-up capital. This provides a buffer for initial expenses while demonstrating some commitment to the business. You can always increase it later as the company grows.

Remember: paid-up capital is not a "fee" - it's money that belongs to the company and can be used for business expenses.