Change in Paid-Up Share Capital Made Simple

Paid-up share capital generally refers to the amount credited as paid-up against shares issued and subscribed by shareholders, as reflected in the company's records.

Paid-up capital commonly increases when a company issues and allots additional shares through an applicable route such as rights issue, private placement or preferential issue, subject to the applicable legal requirements.

No. Authorised capital represents the maximum capital the company is authorised to issue, whereas paid-up capital relates to shares that have actually been issued and subscribed and credited as paid-up.

Shareholder approval requirements depend on the proposed method of issuing shares and the applicable provisions of company law.

PAS-3 is the prescribed MCA form used for filing the return of allotment of securities in the circumstances covered by the applicable rules.

Yes, subject to the applicable provisions, Articles of Association, issue route and compliance requirements.

Requirements can include company constitutional documents, capital details, board and shareholder resolutions, subscriber details, issue documents, proof of payment and other supporting documents depending on the issue route.

Applicable share certificate and related documentation requirements should be completed after allotment in accordance with the applicable law and the company's circumstances.

Reduction of share capital is a different statutory process and should not be treated as the same procedure as increasing paid-up capital.

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