How is the value of shares in a Singapore company determined?

The value of shares can generally be viewed in two ways: the issue price paid by the shareholder when subscribing for the shares, and the actual value reflecting the company's current worth. The two amounts may differ.

• Issue price: The amount the shareholder agrees to pay at incorporation or when new shares are issued, which is reflected in the company's share capital.
• Actual value: Varies depending on the company's net assets, profitability, transaction terms and so on, and is often valued separately when shares are transferred or investment is raised.

When shares are transferred, the transfer price may affect taxes such as stamp duty, so it should be reviewed before the transaction. A share transfer in a private limited company takes effect after ACRA updates the electronic register of members (EROM).

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