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Differenc bet share capital & paid up capital

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Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2014 SIR

CAN YOU PLEASE EXPLAIN ME THE DIFFERENCE BETWEEN SHARE CAPITAL/ AUTHORISED CAPITAL / PAID UP CAPITAL WITH AN EXAMPLE.

THANKS

MUKESH

CA Deven

CA Deven (Expert)
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22 February 2014 Authorised share capital is the maximum share which the company can issue to the public / promoters as the case may be..Authorised share capital is decided at the time of formation of the comapy. However you can increase by intimating to the roc.

Paid up capital are the share capital which are actually issued to public i.e which are actually subscribed out of authorised shares.

paid up capital can either be less or equal to authorised share capital ..but can never be more than authorised share capital

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