For a variety of reasons, a company’s paid-up capital may need to be increased. As the paid-up capital shows the financial strength of a company, there may be instances whereby a company may need to increase the paid-up capital before tendering for certain projects. Also, there may be investors who may inject money into the company in exchange for shares. All these are instances where the paid-up capital of a company needs to be increased.
First, the monies need to be deposited into the company’s bank account. You will then need to pass the proof of deposit, notably the bank deposit slip, to the company secretary.
Upon receipt of the proof of deposit, the company secretary will prepare a list of documents to be signed by the various parties.
Upon receiving the signed documents, the documents will be uploaded to the Accounting and Corporate Regulatory Authority (ACRA) and we can get an updated company business profile showing the revised paid-up capital for the company.
Please note that once the monies have formed part of the paid-up capital of the company, it no longer belongs to anyone but the company. It can only be used for company expenses.
When in doubt, seek legal advice or contact an ACRA Filing Agent.
Yours Sincerely,
The editorial team at Singapore Secretary Services