What is a share capital
Copy link
Share capital refers to the amount of money that shareholders have committed to the company. Share capital can be issued with or without full payment from shareholders. The minimum issued share capital is $1 when you incorporate a company. “Paid up capital” refers to the amount shareholders have paid to the company for their shares.
Example: Company X issues 100,000 shares at $1 each to its shareholders. This brings the issued share capital to $100,000. However, the shareholders have only paid up 50% of their shareholding, which means that the paid up capital is $50,000 and the unpaid share capital is $50,000. If the shareholders pay the remainder 50% of their shareholding, then the company’s paid up capital will become $100,000 and the unpaid share capital will be $0. If Company X issues new shares in future, the amount of issued and paid up capital will increase accordingly.
Latest articles
Tool and strategies modern teams need to help their companies grow.
Invite users to stay updated with exclusive insights and market trends by subscribing to the newsletter.
Start stacking your bullion. Download the InProved app and build your legacy in gold and silver.
+65 8899 3720
support@inproved.com