The capital of a company refers to the funds or assets that are invested in the company by its owners or shareholders.
This capital is used to start and operate the business, and can be in the form of cash, property, equipment, or other assets. The capital can be divided into different types such as authorized capital, issued capital, subscribed capital, and paid-up capital.
The authorized capital is the maximum amount of capital that a company can issue to its shareholders, while the issued capital is the portion of authorized capital that has been issued to the shareholders.
The subscribed capital is the portion of issued capital that the shareholders have agreed to purchase, and the paid-up capital is the portion of subscribed capital that has been actually paid by the shareholders.