Step 4.4: Deciding on share capital & share types
Understand share capital, paid-up capital, and different share types including ordinary and preference shares for your company.
Last updated 29 January 2026
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Understanding share capital
The table below explains the difference between share capital and paid-up capital.
Key terms
Term | Details |
|---|---|
Share capital | Amount that shareholders have committed to invest in the company.
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Paid-up share capital | Amount that shareholders have actually paid for their shares Note: Companies with paid-up share capital of $500,000 and above automatically become Singapore Business Federation (SBF) members. |
Example: Company X issues 100,000 shares at $1 each. This makes the issued share capital $100,000. If the shareholders only pay 50% upfront: The paid-up capital is $50,000. The unpaid share capital is $50,000.
Understanding company shares
Shares represent ownership in a company. They can be bought by a person, company, or limited liability partnership (LLP). When someone buys shares, they become a shareholder and own a part of the business.
Issued shares and paid-up shares
Issued shares: The number of shares that have been allotted to shareholders
Paid-up shares: The portion of issued shares for which payment has been received
The amount of paid-up shares cannot exceed the amount of issued shares.
How shares can be paid for
A share can be:
Fully paid: Buyer pays the full price upfront
Partially paid: Buyer pays a part now and the rest later
Types of shares
Companies can issue different types (also known as "classes") of shares. The selection of share classes depends on your company's share structure.
Features by share type
Share type | Features |
Ordinary shares: Most common type |
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Preference shares |
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Redeemable preference shares: Shares that the company can buy back later at an agreed price |
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Convertible preference shares: After giving fixed dividends for a set period, can be converted into ordinary shares at an agreed price or left unchanged. This allows investors to get ordinary shares at a lower price if the company's value grows. |
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Treasury shares: Ordinary shares that the company has gotten from its shareholders. |
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Reasons to issue different types of shares
Companies may issue different share types to:
Keep control of the company with specific shareholders
Offer attractive dividend terms to investors
Set different payout rights if the company closes
Meet different investor needs and preferences
More details: Shares and updating share information
Nominee shareholders
A nominee shareholder holds shares in your company on behalf of another person or entity. This happens when the shareholder meets any of these conditions:
Voting: The shareholder is required (formally or informally) to vote in accordance with the directions, instructions, or wishes of another person
Dividends: The shareholder receives dividends on behalf of another person
The person or entity they represent is called the nominator.
On the date of your company's incorporation, the nominee shareholder needs to inform your company of their nominee status and provide the nominator's details.
Frequently asked questions (FAQs)
How do I add a shareholder when I register a company via Bizfile?
Learn how to add position holders and shareholders when you register a local company.
What is 'All in Cash' and other consideration types?
You will see these options when you issue shares through Bizfile.
These terms describe the mode of payment for shares issued:
All in Cash: Shares issued with payment made entirely in cash
All Otherwise than in Cash: Shares issued fully by non-cash consideration, such as assets or services
No Consideration: Shares issued without any consideration (for example, bonus shares)
Partially in Cash and otherwise than in cash: Shares partly paid in cash and partly with consideration other than cash
Are there minimum or maximum figures for shares?
Yes, the minimum number of issued shares is one.
The maximum figure may contain up to 19 digits, with up to 19 decimal places for precise valuation.
Can I have multiple currencies for shares?
Yes, companies may issue shares in multiple currencies as per their constitution and regulatory requirements.
The above guide is intended to provide broad guidance. As it avoids legal language wherever possible, it might contain some generalisations about the applications of the law. Professional advice should be sought on how the relevant laws may apply to your specific case or circumstances.