Want to get some advice on your paid up capital or need to register a company but not sure where to start? Talk to our team of registered Company Secretaries.
What is Paid Up Capital?
Paid Up Capital is a specified amount of money/funds provided to a company by its shareholders in exchange for stock or a stake in the company. This is how a business can raise money to cover its operational costs or to project for future growth.
What is the Minimum Required Paid Up Capital to Register a Company in Malaysia?
As per the Companies Commission of Malaysia, there is no minimum required paid up capital to register a company in Malaysia. However, it is usually in a company's benefit to start the company with a small amount of funds to facilitate operations, for example, the opening of a bank account, submitting tenders, or making visa applications for foreign directors.
If you're unsure of how much to contribute to your company as a starting point, please get in touch with us for further advice.
Can I Increase my Paid Up Capital?
Yes, you absolutely can. It is a quick and easy process that requires your company secretary to obtain some signatures and file a few documents.
Do I Need to Actually Bank In the Money I Declared as Paid Up Capital?
Yes! Any increase of paid up capital must be proven before it is filed with the Companies Commission of Malaysia. If you've received advice that you can increase your paid up capital without remitting said amount into your company's bank account, please ignore that advice and consider engaging a different service provider, as this is illegal and could land you a fine as much as RM5million.
Can a Shareholder Request for the Company to Return their Contribution to the Paid Up Capital?
Unfortunately, no. Paid Up Capital is the property of the company and cannot be returned to the shareholders. Shareholders may buy and sell their shares in the company, however a return of their contribution can only happen when the company is wound up, and only after the winding up process has happened are the remaining funds distributed amongst the shareholders.