Companies applying under the Standard and Major Payment Institutional Licences are required to maintain minimum base capital requirement. Standard payment institutions and major payment institutions must maintain minimum base capital of S$100,000 and S$250,000 respectively. Entities licensed under money-changers are currently not required to maintain a minimum base capital.
Base capital refers to sum of:
- All of the paid-up ordinary share capital and paid-up irredeemable and non-cumulative preference share capital in the latest accounts of the company; and
- Any unappropriated profit or loss in the latest audited accounts of the company,
- Any interim loss in the latest accounts of the company; and
- Any dividend that has been declared since the latest audited accounts of the company
Major payment institutions are also required to maintain a security deposit of S$100,000 (if the average, over a calendar year, of the total value of all payment transactions that are accepted, processed or executed by the licensee in one month, does not exceed S$6 million of its equivalent in a foreign currency, for any one payment service it provides) or S$200,000 in any other cases.
The security deposit is typically required to be provided in the form of cash or bank guarantee.