What exactly is a share certificate?
You can think of a share certificate like a receipt or proof, but much more formal and official.
It shows:
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The shareholder’s name.
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The number of shares they own.
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The class of shares (if there are different types, like ordinary or preference shares).
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The date the shares were issued.
Do you need to issue share certificates?
Yes, it’s required under Singapore law. After you incorporate your company and issue shares, you need to give each shareholder their share certificate within 60 days of issuing the shares.
Why is it important?
A Share certificate is a legal proof of ownership. If someone questions who owns shares in your company, the share certificate helps to verify and confirm ownership.
Do you need to keep records?
Yes! For every share certificate issued, you should record it in your Register of Members— which keeps track of all the shareholders, how many shares they own, and any transfers or changes in ownership.
A tip for managing this
Hiring a corporate service provider like ScAilable will help you with the share certificates and compliance. We’ll make sure everything’s done by the book, saving you the trouble.