Authorized capital refers to the maximum amount of capital that a company is authorized to raise through the issuance of shares. This amount is mentioned in the company’s memorandum of association and represents the limit up to which the company can issue shares.
Paid-up capital, on the other hand, refers to the actual amount of capital that has been raised by the company through the issuance of shares. This represents the amount of money that has been paid by the shareholders for the shares they hold in the company. The paid-up capital can be lower than the authorized capital, depending on the amount of capital the company has actually raised.
