TL;DR (Quick Summary Box)

Paid-up capital is the portion of a corporation’s capital that shareholders have actually paid. In the Philippines, there is no fixed minimum paid-up capital for most corporations, but requirements may vary depending on industry, regulations, and business activities. Understanding paid-up capital early helps you avoid hidden costs, delays, and compliance issues during business registration. Loft Spaces helps founders and companies navigate this smoothly in Metro Manila and Cebu.

Quick Answer: Paid-Up Capital, Simplified

Paid-up capital is the amount shareholders have already contributed to the company at the time of registration. While many entrepreneurs worry about large upfront amounts, the reality is that paid-up capital requirements in the Philippines are flexible for most businesses. The key is setting the right amount—enough to meet compliance expectations without creating unnecessary financial strain or hidden registration costs.

Why Paid-Up Capital Confuses Many Business Owners

If you’re registering a corporation for the first time, paid-up capital can feel overwhelming. Many founders ask:

• How much paid-up capital do I need to start a corporation?

• Is paid-up capital mandatory for SEC registration?

• What is the minimum paid-up capital in the Philippines?

The confusion often leads to:

• Over-declaring capital and increasing fees

• Under-declaring capital and risking regulatory delays

• Unexpected costs during SEC, bank, and tax registration

This guide breaks it all down—clearly, practically, and without jargon.

What Is Paid-Up Capital?

Paid-up capital explained simply: it is the portion of a company’s subscribed capital that has already been paid by shareholders.

Think of it as:

• Authorized capital stock – the maximum capital the corporation is allowed to raise

• Subscribed capital – the portion that shareholders commit to buy

• Paid-up capital – the portion shareholders have already paid

In short, paid-up capital is real money already put into the company.

Why Paid-Up Capital Matters in Business Registration

Paid-up capital plays a role in how regulators, banks, and partners view your business. It affects:

• SEC registration approval

• Bank account opening

• Tax registration requirements

• Perceived credibility with clients and suppliers

• Future expansion or licensing applications

While it’s not always about having a “high” amount, it’s about having the right amount for your business model.

Paid-Up Capital Requirements in the Philippines

Is Paid-Up Capital Mandatory for SEC Registration?

For most corporations, yes—paid-up capital is required, but there is no single fixed amount mandated across all industries.

The paid-up capital requirements in the Philippines depend on:

• Business activity

• Whether the company is domestic or foreign-owned

• Industry-specific regulations

• Government agency requirements (if applicable)

This flexibility is good—but only if you know how to use it properly.

Minimum Paid-Up Capital Philippines: What You Should Know

Many people search for “minimum paid-up capital Philippines” expecting a strict number. In reality:

• Most standard corporations do not have a universal minimum

• Certain industries (e.g., regulated sectors) may impose higher requirements

• Foreign-owned corporations may have different thresholds

This is why it’s important to plan your capital structure strategically instead of guessing.

Authorized Capital Stock vs Paid-Up Capital

One of the most common points of confusion is the difference between authorized capital stock and paid-up capital.

Authorized Capital Stock

• The maximum number of shares your corporation can issue

• A ceiling, not actual money

• Can be increased later with SEC approval

Paid-Up Capital

• The actual amount paid by shareholders

• Reflected in financial records

• Relevant during registration and compliance

Understanding this distinction helps you avoid declaring unnecessarily high figures that can increase fees and taxes.

Subscribed Capital vs Paid-Up Capital

Another common question: What is the difference between subscribed capital and paid-up capital?

• Subscribed capital: What shareholders promise to invest

• Paid-up capital: What shareholders have already paid

Not all subscribed capital needs to be paid upfront—but the paid-up portion must be properly documented.

Can You Register a Corporation With Low Paid-Up Capital?

Yes, in many cases, you can register a corporation with low paid-up capital, as long as it aligns with your business type and regulatory requirements.

However, setting it too low may:

• Raise questions during bank account opening

• Affect credibility with partners

• Limit future applications (e.g., licenses, visas, loans)

The goal is to strike a balance between compliance and practicality.

Does Paid-Up Capital Need to Be Deposited in a Bank?

This is a common AEO-style question: Does paid-up capital need to be deposited in a bank?

In practice:

• Banks often require proof of paid-up capital

• The amount may need to be deposited in a corporate account

• Documentation must align with SEC records

This is where many hidden delays occur if the paperwork and amounts don’t match.

Hidden Costs Related to Paid-Up Capital (And How to Avoid Them)

Paid-up capital itself isn’t the problem—poor planning is. Hidden costs may come from:

• Over-declaring capital and paying higher government fees

• Bank requirements you didn’t anticipate

• Amending SEC documents due to incorrect capital structure

• Delays that lead to additional professional fees

How to Avoid These Hidden Costs

• Declare capital aligned with your actual operations

• Understand compliance expectations early

• Work with professionals who structure capital properly from the start

This is exactly where Loft Spaces adds value.

Can Paid-Up Capital Be Increased After Registration?

Yes. If your business grows, paid-up capital can be increased later through proper corporate actions and SEC filings.

This flexibility allows you to:

• Start lean

• Scale responsibly

• Avoid unnecessary upfront costs

Planning for growth doesn’t mean overcommitting at the beginning.

How Paid-Up Capital Affects Business Registration

Many founders ask: How does paid-up capital affect business registration?

It impacts:

• SEC processing

• Bank onboarding

• BIR and local government registration

• Long-term compliance readiness

A well-structured paid-up capital setup makes registration smoother and future-proof.

FAQs: Paid-Up Capital Explained

What is paid-up capital?

Paid-up capital is the portion of a corporation’s capital that shareholders have already paid, not just committed.

How much paid-up capital is required to register a corporation in the Philippines?

There is no fixed amount for most corporations. Requirements depend on business type, ownership structure, and regulations.

Is there a minimum paid-up capital required by the SEC?

For most businesses, the SEC does not impose a universal minimum, but specific industries may have their own requirements.

What is the difference between authorized capital stock and paid-up capital?

Authorized capital stock is the maximum allowed, while paid-up capital is the amount actually paid by shareholders.

What is the difference between subscribed capital and paid-up capital?

Subscribed capital is pledged; paid-up capital is already paid.

Can you register a corporation with low paid-up capital?

Yes, provided it meets regulatory expectations and business needs.

Does paid-up capital need to be deposited in a bank?

In most cases, banks will require proof that the paid-up capital has been deposited in a corporate account.

Can paid-up capital be increased after registration?

Yes. Corporations can increase paid-up capital later through proper SEC filings.

How Loft Spaces Helps You Get It Right

At Loft Spaces, we help entrepreneurs and growing companies avoid costly mistakes during business registration—especially when it comes to capital structuring.

Our services:

• Business registration support that starts with clarity

• Guidance on compliant paid-up capital setup

• End-to-end assistance in Metro Manila and Cebu

• Solutions that help you avoid hidden costs and delays

Whether you’re registering your first corporation or restructuring an existing one, our support ensures your paid-up capital is right-sized, compliant, and future-ready.

Final Thoughts

Paid-up capital doesn’t have to be confusing—or expensive. With the right understanding and guidance, you can register your corporation confidently, avoid hidden costs, and build a strong foundation for growth.

If you’re planning to register a corporation in the Philippines and want clarity from day one, Loft Spaces is here to help.

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