{"id":2967,"date":"2018-07-18T05:37:17","date_gmt":"2018-07-18T05:37:17","guid":{"rendered":"https:\/\/companyregistrationonline.in\/?p=2967"},"modified":"2020-12-31T06:52:32","modified_gmt":"2020-12-31T06:52:32","slug":"authorized-capital-paid-up-capital-difference","status":"publish","type":"post","link":"https:\/\/companyregistrationonline.in\/blog\/authorized-capital-paid-up-capital-difference\/","title":{"rendered":"Difference between Authorized Capital and Paid Up Share Capital"},"content":{"rendered":"

[fusion_builder_container hundred_percent=”no” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” parallax_speed=”0.3″ video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” overlay_color=”” video_preview_image=”” border_color=”” border_style=”solid” padding_top=”” padding_bottom=”” padding_left=”” padding_right=”” type=”legacy”][fusion_builder_row][fusion_builder_column type=”1_1″ layout=”1_1″ background_position=”left top” background_color=”” border_color=”” border_style=”solid” border_position=”all” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” center_content=”no” last=”true” min_height=”” hover_type=”none” link=”” border_sizes_top=”” border_sizes_bottom=”” border_sizes_left=”” border_sizes_right=”” type=”1_1″ first=”true”][fusion_text]Before discussing the\u00a0difference between Authorized Capital and Paid-up Capital it is important to understand what is authorized and paid up capital.<\/p>\n

Authorized Share Capital<\/h2>\n

It is the greatest measure of offer that an organization is approved to have by its MOA to issue to the investors i.e the maximum share capital that a company is permitted by its articles to issue to the shareholder. It isn’t important to issue the entire authorized share capital to the shareholders, some portion of it can remain un-issued.<\/p>\n

The amount of capital that is issued to the investor is known as the issued share capital. However, authorized share capital is the one which is the maximum share capital that an organization can legitimately issue to the investors. The Authorized capital should be determined in the Memorandum of Association<\/a><\/strong> (MOA).<\/p>\n

Approved capital is extensively partitioned into the:<\/p>\n