For Singapore small businesses, raising capital is often essential to fund growth, expansion, or new ventures. One of the most effective ways to achieve this is through share allotments, where new shares are issued to investors. Properly handled, share allotments protect shareholder rights, maintain accurate ownership records, and comply with legal requirements.
With professional support from corporate secretarial services in Singapore, the process can be smooth and error-free.
Before issuing share allotments, SMEs need to secure the correct approvals and follow legal procedures:
Board resolution: Directors must approve the issuance either at a board meeting or an extraordinary general meeting.
Shareholder consent: Shareholders generally need to approve the allotment through a general meeting or a written resolution.
Constitutional compliance: Allotments must adhere to the company’s constitution, respecting the rights attached to various share classes, such as ordinary or preference shares.
Singapore Companies Act: Compliance with the Act ensures legal protection for both the company and its shareholders.
Following these steps ensures clarity, reduces disputes, and keeps the company’s shareholding structure transparent.
Shares can be issued in exchange for:
Cash contributions from investors
Non-cash contributions, such as property, contracts, or other valuable assets
Once approvals are obtained:
The company secretary prepares share certificates for all new shareholders.
The company must file a Return of Allotment of Shares with ACRA within 14 days (for private companies).
✅ At Counto, we prioritise your savings and efficiency over hefty fees. Our team of seasoned compliance professionals expertly handles everything from company registration and nominee director services, to tax filing at unbeatable rates. Discover more about our cost-effective company incorporation packages here.Â
The filing includes key details such as:
Total number of shares allotted
Payment status (fully or partially paid)
Share class
Updated shareholder information
Proper documentation ensures the process is legally valid and shareholders’ rights are protected.
Issuing share allotments can provide numerous advantages for Singapore small businesses:
Raise additional capital to support growth, expansion, or joint ventures
Attract new investors or increase the holdings of existing shareholders
Maintain clear and organised ownership records
Ensure compliance with Singapore corporate law
Tips for SMEs:
Verify all shareholder details before issuing certificates
Keep both physical and digital copies of share certificates for record-keeping
Submit allotment returns to ACRA on time to avoid penalties
Consider professional corporate secretarial services in Singapore to manage complex allotments efficiently
Share allotments are a practical and legal way for Singapore small businesses to secure capital while keeping shareholder records accurate and compliant. By following the correct approval processes, preparing certificates properly, and filing returns with ACRA, SMEs can safeguard ownership rights, maintain transparency, and strengthen their financial position, with the guidance of corporate secretarial services in Singapore.
Don’t let regulatory complexities impede your business growth. Counto’s elite corporate secretarial services are your strategic advantage for flawless compliance and governance in Singapore’s competitive business landscape. To learn more, speak to us directly on our chatbot, email [email protected], or use our  contact form to get started.
Here are some articles you might find helpful:
Payroll Data Protection for Singapore SMEs
Tax Relief for Foreign Small Business Owners Singapore
Freelance vs Traditional vs Modern Accounting Singapore
Filing Annual Returns in Singapore
Wise International Money Transfers Singapore
Whatsapp 
Call