Guide to Issue Share Certificates for Singapore Company

For the first time, when you complete the incorporation of your company, it becomes necessary to issue share certificates. As the company grows, it is quite obvious that you wish to raise more capital in order to run your business by selling parts of the company through shares.

In this article, you will read guide on how to issue Share Certificates and also have a better understanding of shares.

What is a share certificate?

A share certificate is basically a verification that demonstrates your own shares of a company and also that you are a certified shareholder of the company. Being an investor, you will find that these certificates are now deposited electronically into your central depository accounts instead of getting a hardcopy paper.

It is necessary for you to know that paper share certificates are mainly used by private companies and then delivered to the shareholder. In case, you are starting a new company in Singapore then you first require to issue a share certificate when the company is being established. After this, the share certificates will be given when you give out, sell or transfer all the shares of your company.

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What all information needs to be included in a share certificate?

Some important information that needs to be included in a share certificate are stated below:

• The company’s name
• The company’s registration number
• The authority under which the company is formed
• The date on which the certificate was issued
• The registered address of the company
• Name and address of the shareholders
• Number of shares that are issued
• The class of shares
• Whether shares are fully or partly paid-up
• Amount unpaid on the shares (if any)

In some cases, the share certificates might also have a counterfoil that the shareholder can use in order to recognize receipt of the share certificates and return to the company.

To maintain proper records, the company should always maintain copies of the share certificates that are issued and update the contact detail of its shareholders.

What are the types of shares that can be issued?

Nowadays, Singapore companies generally issue preference or ordinary shares. The class name of the shares that you are issuing should be involved in the share certificate.

There are two other types of shares such as management shares and redeemable shares. However, these types of are shares are quite rare.

When to issue share certificates?

There are three conditions in which share certificates are issued:

• The company agrees to issue the new shares
• The shareholder’s transfer shares between themselves or any outsiders
• A shareholder misplaces their share certificate or the certificate is ruined

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