Authorised capital is the maximum share capital a company is permitted to issue under its memorandum of association; it is a ceiling, not money raised. Paid-up capital is the part of issued share capital that shareholders have actually paid to the company for their shares. Both appear on the MCA master data page. Paid-up capital shows what owners have put in as share capital, but it says nothing about the company's current cash, profits or debts.
The capital ladder
| Term | Meaning | Example (hypothetical) |
|---|---|---|
| Authorised capital | Maximum shares the company may issue | ₹10,00,000 |
| Issued capital | Shares the company has offered | ₹5,00,000 |
| Subscribed capital | Shares taken up by shareholders | ₹5,00,000 |
| Paid-up capital | Amount actually paid on those shares | ₹5,00,000 (or less if partly paid) |
In most private companies issued, subscribed and paid-up capital are the same figure. Authorised capital is often set higher so the company can issue more shares later without amending its memorandum.
Where to see them
- Open mca.gov.in > MCA Services > Master Data > View Company or LLP Master Data.
- Enter the CIN or name and the captcha.
- Read the Authorised Capital and Paid up Capital fields in rupees.
- For an LLP, the equivalent field is the total obligation of contribution.
What a supplier can read from the numbers
Paid-up capital is a rough signal of how much the owners have committed as share capital. A company with ₹1,00,000 paid-up capital asking for ₹50,00,000 of credit is relying entirely on borrowed money and trade credit, which tells you to look harder at its filings, its charges and your own experience with it. A large paid-up capital is reassuring but not proof of solvency, because the money may have been spent long ago.
What the numbers do not show: cash, turnover, profit, net worth, debts or whether it pays suppliers on time. For those you need the filed financial statements (available through paid document inspection on MCA), the GST filing record of the buyer, and your own ledger. A quick GSTIN check on FundRaksha Trust shows whether the buyer's GST registration is active.
Why it matters in recovery
A private limited company's shareholders are generally liable only up to the amount unpaid on their shares, so when capital is fully paid, a supplier cannot usually chase shareholders personally for the company's debts. That is why the routes that reach the company's assets, or that reach directors personally in defined cases, matter: Section 141 for bounced company cheques, personal guarantees, and director liability after strike off under Section 248(7).
FundRaksha Legal looks at the whole MCA record, not one number, before choosing the route. Fee: 30% only on recovery.
Last reviewed: 2026-10-20. Information for Indian businesses; not legal advice.