What is the difference between authorized capital and paid-up capital?
Question
What is the difference between authorized capital and paid-up capital?
Expert Answer
Answered 18 Apr 2026
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Authorized Capital – The maximum amount of capital that a company is legally allowed to issue to shareholders as stated in its memorandum of association is called authorized capital of the company.
Paid-up Capital - the actual amount of money received by the company from shareholders in exchange for shares is called paid up capital of the company.