What is paid-up capital?
Paid-up capital is the value paid or credited as paid on issued shares. Cash subscriptions become company funds; properly documented non-cash consideration is also possible. The Companies Act 2016 removed par value and the old authorised-capital concept. The capital needed in practice depends on the business, licences and financing requirements.
Sources: Companies Act 2016 ss.74, 78
Also asked as: paid up capital meaning; modal berbayar maksud; authorised vs paid up capital; share capital explained.
Key facts
- Paid-up capital belongs to the company
- Cash and properly documented non-cash consideration are possible
- Shares have no par value under the Companies Act 2016