What Is Authorized, Issued And Subscribed Capital?


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Anonymous answered
Authorized or Registered Capital: it is the capital, which is registered with the registrar of the company. It is the highest limit of which a company can do its business however, the company can operate its business with the less amount than the authorized capital which is divided into a number of shares of certain value each. For instance, a company may have an authorized capital 100 million rupees divided into 10 million shares of Rs.10 each Company generally get their capital authorized much above their current needs.

Issued capital: an mentioned above the company does not usually operate its business with the amount as high as authorized capital because it is above it current requirement . Hence the company do not issue the whole of authorized capital. The part issued for public subscription is referred to issued capital.

To continue the above example, out of Rs.100 million authorized capital a company may issue Rs.50 million divided into 5 million shares of Rs.10 each for public subscription. This capital is known as issued capital.
Subscribed capital: it is the amount of capital agreed by the public to contribute in response to the call of company. If the company enjoys a good market reputation the capital may be oversubscribed in this case over subscription will have to be refunded.
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Kowser Ahamed
Kowser Ahamed commented
Anonymous Profile
Anonymous answered
It is the amount of capotal with which the company is registered by the registrar of company
issued capital it is the amount of  authorized coapital which is issued to people
it is the amont of capital which is issued for subscription in the company

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