Discuss your views about Singapore business & economy, current policies & issues, starting a business in Singapore.
-
Leix
- Newbie
- Posts: 13
- Joined: Thu, 09 May 2013 8:32 pm
- Location: Singapore
-
Quote
-
0
login to like this post
Post
by Leix » Thu, 07 Nov 2013 12:46 pm
Hi All,
I have an accounting question here;
I want to put in more capital into the company.
What are the ways that I can do this?
So far, I found that I can either raise the paid-up capital or take a loan. Both cases will require me to take on the services of the secretarial service that I am bound to and the charges are quite substantial.
Is there any other way that wouldn't involve the secretary?
-
Strong Eagle
- Moderator
- Posts: 11618
- Joined: Sat, 10 Jul 2004 12:13 am
-
Answers: 9
- Location: Off The Red Dot
-
Contact:
-
Quote
-
0
login to like this post
Post
by Strong Eagle » Thu, 07 Nov 2013 11:30 pm
Why do you need the secretarial services for a loan? It's a simple transaction. Debit cash. Credit Loans Payable. Have a loan document in place stating repayment terms and interest rates. All that should be required is a simple one page, one paragraph directors resolution authorizing that the company undertake the loan.
For shares, if you already have Treasury stock, that is, stock that was authorized but never issued, then all you need to do is a directors resolution to issue that stock... again, one page showing how many shares and at what price.
If you need to authorize more shares, then this must be approved at an AGM or EGM by the shareholders. But again, it's only a couple of pages of documents... not worth more than a few hundred dollars to prepare all of it.
-
livingontheedge
- Chatter
- Posts: 160
- Joined: Tue, 25 Jun 2013 12:36 pm
-
Quote
-
0
login to like this post
Post
by livingontheedge » Fri, 08 Nov 2013 11:38 am
Don't you already have a Company Secretary as a Private Company to handle these matters?
-
Leix
- Newbie
- Posts: 13
- Joined: Thu, 09 May 2013 8:32 pm
- Location: Singapore
-
Quote
-
0
login to like this post
Post
by Leix » Sun, 10 Nov 2013 4:03 pm
Yeah, I have a secretary under the business registrar but since I am paying on a per service basis, I'm inclined to think that they will lead me on towards their expensive services. Hence, the double check I am doing here to see for a cheaper alternative.
I'll look into that treasury stock, sounds like a good idea. My company seal and ACRA account are under the secretary's custody. I think I need them both to make the resolution official, righto?
-
Strong Eagle
- Moderator
- Posts: 11618
- Joined: Sat, 10 Jul 2004 12:13 am
-
Answers: 9
- Location: Off The Red Dot
-
Contact:
-
Quote
-
0
login to like this post
Post
by Strong Eagle » Mon, 11 Nov 2013 10:54 pm
Leix wrote:Yeah, I have a secretary under the business registrar but since I am paying on a per service basis, I'm inclined to think that they will lead me on towards their expensive services. Hence, the double check I am doing here to see for a cheaper alternative.
I'll look into that treasury stock, sounds like a good idea. My company seal and ACRA account are under the secretary's custody. I think I need them both to make the resolution official, righto?
You should be registered as managing director with ACRA and should be able to make all updates for your company.
-
MaryRR
- Newbie
- Posts: 3
- Joined: Mon, 11 Nov 2013 10:31 pm
-
Quote
-
0
login to like this post
Post
by MaryRR » Thu, 14 Nov 2013 6:33 am
Please can you clarify why you want to raise capital in the business?
-
Strong Eagle
- Moderator
- Posts: 11618
- Joined: Sat, 10 Jul 2004 12:13 am
-
Answers: 9
- Location: Off The Red Dot
-
Contact:
-
Quote
-
0
login to like this post
Post
by Strong Eagle » Thu, 14 Nov 2013 10:37 pm
MaryRR wrote:Please can you clarify why you want to raise capital in the business?
What difference does that make? Could be for capital investment, or for real estate. Or to pay down outstanding payables and open loans. Or to entice a "power employee" to come on board with a signing package. The only restriction of which I am aware is that if you issue stock, dividends cannot be paid from paid up capital.
-
livingontheedge
- Chatter
- Posts: 160
- Joined: Tue, 25 Jun 2013 12:36 pm
-
Quote
-
0
login to like this post
Post
by livingontheedge » Thu, 14 Nov 2013 11:51 pm
A Special Resolution is valid as long as 75% of the shareholders vote and authorize on this. Unless you have a large number of shareholders that you need the Corp Sect to contact them, arrange the meeting and minute the meeting, you can simple pass around the resolution and get the resolution approved, without involving the Corp Sect.
The service fee charged by the Corp Sect would still be incurred in view of lodging the change in the shareholders/share capital amount and updating the registers.
If its borrowings or credit facilities with a bank, you would probably need a Director Resolution and wouldn't need to get the Corp Sect involved.
-
-
Local Resident Director – “Risks” ? (Pte Ltd)
Replies: 3
First post
I am a foreigner and intend to incorporate a local company (I need to engage a filing agent). Sole shareholder is me; $1 capital. It's a contract...
Last post
As a side note, what makes you think you're going to get an EP in three weeks? An EP requires a minimum salary level. If you can't show where the...
- 3 Replies
- 2665 Views
-
Last post by Strong Eagle
Sat, 17 Aug 2019 10:28 pm
-
-
How to exit pte company as shareholder?
Replies: 1
First post
Hello everyone! I am in a sticky situation and I would appreciate any help!
I am a shareholder in a pte ltd company, with 40% of shares. There are...
Last post
Hello everyone! I am in a sticky situation and I would appreciate any help!
I am a shareholder in a pte ltd company, with 40% of shares. There are...
- 1 Replies
- 2974 Views
-
Last post by Strong Eagle
Fri, 15 Dec 2023 6:17 am
-
-
Raising Additional Buyer's Stamp Duty (ABSD) Rates
Replies: 26
First post
1. The Government announced today increases in the Additional Buyer’s Stamp Duty (ABSD) rates to promote a sustainable property market. The revised...
Last post
I feel that EP holders, as residents and taxpayers, should at least be extended some preference (e.g., 30%) compared to non-resident foreigners who...
- 26 Replies
- 6089 Views
-
Last post by PNGMK
Mon, 01 May 2023 3:24 pm
-
-
- 32 Replies
- 53198 Views
-
Last post by malcontent
Wed, 14 Jun 2023 8:15 pm
-
-
How to Determine Paid Up Capital
This question was sent to me privately. I do not generally respond to questions sent privately.
Hi Strong Eagle, Can I ask you a quick question...
- 0 Replies
- 1485 Views
-
Last post by Strong Eagle
Sun, 14 Apr 2019 12:15 pm
Users browsing this forum: No registered users and 9 guests