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In Which Currencies Share Capital of Singapore Company Can Be Recorded?
In Which Currencies Share Capital of Singapore Company Can Be Recorded?
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In which currencies share capital of Singapore company can be recorded?
The money invested by a shareholder to a company, in exchange for the company shares issued to him or her, is referred to as share capital. Share capital is composed of all the funds that a company has gathered in exchange for shares. It determines the ownership of a Singapore company. It grants rights, privileges, and responsibilities to a shareholder as well.
In this discussion, we will highlight the currency in which share capital of a Singapore company can be registered with and how it should be decided. Read on.
Is It Possible to Register a Company’s Capital With Any Currency?
A Singapore company can legally list its capital in any major currency. ACRA offers a wide variety of currencies for companies that will be updating their capital. Hence, a company can issue or receive the payment in any currency possible.
How Should a Company Decide on Its Currency?
Most Singapore companies prefer Singapore dollars or US dollars as a matter of convenience. However, in some cases, companies use the currency in which their share capital was introduced with. Other companies also use the currency in which their share capital was deposited into the bank account. Both of these cases are possible.
Irrespective of the currency, the amount can also be shown in Singapore dollars by suitably converting it at a prevailing exchange rate.
What Is the General Practice in Singapore?
About 90% of Singapore companies registered their capital with Singapore dollars. Some companies registered with US dollars, others registered with GBP/Australian dollars, and the rest registered with other currencies. Basically, most companies prefer Singapore dollars irrespective of the currency in which their capital was deposited.
Apparently, there can be instances when resorting to other currencies would be necessary. For example, a company is getting capital funding from the US. Then, the company that is providing the funding demands that the capital must be registered in US dollars only.
It is also possible to register your capital with multiple currencies. For example, when you first started you registered your capital in Singapore dollars. However later on you got an investor and you issued capital to him in US dollars.
What Is Share Currency? What Is Functional Currency? What Are Their Differences From Each Other?
Share currency is the currency in which shareholding was received and recorded into company reports on ACRA. Most companies in Singapore registered their capital with this currency, and this is the main point of this discussion.
Functional currency is the currency in which books of accounts were prepared for a Singapore company. Nevertheless, it is possible for a Singapore company to have a share currency in Singapore dollars and a functional currency in US dollars. Thus, share currency, national currency, and functional currency can all be different.
Wrapping It Up
A Singapore company can register its capital with any currency—even with multiple currencies. However, Singapore dollars is the most commonly preferred currency by most companies in the country.Foreigner Package
New Company Setup
S$2,400
Local Package
New Company Setup
S$1,100
Transfer Package
Existing Company
S$1,000
Singapore Branch
New Branch Setup
S$4,000
Representative Office
New Setup
S$2,500
BVI Company
Singapore Bank Account
US$2,200
