Yes. In general, paid-up capital is the company's funds and can be used for the company's business purposes, such as office rent, staff costs and purchase payments. However, if there are industry-specific licensing requirements, these need to be checked separately.
Since share capital belongs to the company, it cannot be used for the personal purposes of shareholders or directors, and its use must be recorded in the books with supporting documents. A capital reduction that returns capital to shareholders requires shareholder approval or a court order procedure.
Tax treatment can differ depending on the company's revenue, shareholder structure and transactions, so please consult an accounting professional before applying it.
The Lee Kim Alliance accounting team provides accounting and tax consultation.
As of November 2026, source: ACRA
