Authorized/ Share Capital

WHAT IS AUTHORIZED SHARE CAPITAL?

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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?

It is the actual amount of shares the company has published to its shareholders. The company can arise more shares up to the authorized capital of the company.

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.

HELP?

If you need any help regarding authorized capital you can contact us. We may also help you in increasing and registring your authorized capital. You can also get benefit from our other services including removing directors, adding directors, trade license, etc.