The Department of Business Development (‘DBD’) issued a clarification letter on 21 October 2010 to confirm the interpretation of minimum share capital required for wholesale and retail businesses.
Keywords: Department of Business Development, Share Capital, Foreign Business Act
The amount of capital on commencement of the business operation under the Foreign Business Act (‘FBA’) will be assessed as the amount that is fully paid-up.
In addition, according to the list of prohibited businesses as per the FBA, it is not only retail and wholesale businesses that will be affected by this interpretation. Companies which engage in construction, provision of basic services to the public in utilities or transportation and brokers or agents for international procurement will also be required to fully pay up their registered capital.