What is Paid explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Paid-up Capital is a term you will often come across in Company Law. This guide explains what Paid-up Capital means, gives a simple example, and shows why it matters for taxpayers and businesses — in plain English.
What is Paid-up Capital?
Paid-up Capital is the amount of share capital that shareholders have actually paid to the company for the shares issued to them.
In practical terms, Paid-up Capital is a company-law concept — it governs how companies are formed, managed or how their decisions are made. Understanding it helps you read financial documents, stay compliant and make better decisions.
Paid-up Capital explained with an example
If a company issues 1,000 shares of ₹10 each fully paid, its paid-up capital is ₹10,000. Examples like this make it easier to see how Paid-up Capital works in real situations.
Why Paid-up Capital matters
Paid-up capital represents the real equity funds a company has received from shareholders.
Paid-up Capital at a glance
| Category | Company Law |
| Meaning | The amount of share capital that shareholders have actually paid to the company for the shares issued to them. |
| Example | If a company issues 1,000 shares of ₹10 each fully paid, its paid-up capital is ₹10,000. |
Key points to remember
- Where it applies: Company Law
- In short: The amount of share capital that shareholders have actually paid to the company for the shares issued to them.
- Why it matters: Paid-up capital represents the real equity funds a company has received from shareholders.
Related terms
If you are learning about Paid-up Capital, these related terms are worth knowing too:
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