WHAT IS AUTHORIZED SHARE CAPITAL?
Authorized share capital is the capital that is registered by the registrar of the company. It is the highest boundary, within limits of which a company can do its business. However, the company can operate its business with less amount than the authorized which is divided into several shares of certain values to each shareholder. It is the maximum amount of shares a company can issue.
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WHAT IS PAID UP CAPITAL?
DIFFERENCE BETWEEN AUTHORIZED SHARE CAPITAL AND PAID-UP CAPITAL
The basic difference between the authorized share capital and paid-up share capital is that the authorized share capital is the maximum value of shares that a company can allot to its stockholders. Whereas, a Paid-up Capital is the part of authorized share capital for which the shares were issued to the stockholder.