Paid-up capital is the amount of money a holding company has received from shareholders in exchange for shares of stock. Paid-up capital is created when a company sells its shares to shareholders of that company. When shares are sold to such primary investors of that company, proceeds are deposited into the company bank accounts and goes towards fulfilling the objective of the company’s business. A holding company that sells its shares in the primary market directly to investors will increase its paid-up capital.
Therefore, paid-up capital is the total sum of investment capital received by any holding company from its shareholders in exchange for shares.
Bank accounts can be created for each holding company to deposit paid-up capital. Bank accounts under your holding company are usually denominated in SGD and USD, provided only by heavily regulated providers in Singapore. It comes with the normal functions of receiving and paying through SWIFT, under the account name exactly the same as the holding company name.
It is to note that your deposits can also be covered under the SDIC (Singapore deposit insurance corporation), which was set up to protect the core savings of small depositors in Singapore if a full bank or finance company fails. Your deposits in your bank account are insured for up to SGD 75,000 per bank. So if the bank goes bankrupt, this is the amount which you can get back from this organization. It is also worth mentioning that there has never been a bank failure in Singapore, except for Barings bank of the UK, which happened because of the actions of a rogue trader (Nick Lesson).
