Subscribed capital is the money or capital that is generated by an agreement of selling shares of the company. This capital may be lesser or equal to, but never greater than the authorized capital. This capital is basically the proceeds that the shareholders have “agreed” to pay for the shares. The subscribed capital transforms into paid-up capital when the shareholders actually make the cash payment that they agreed to pay. The slight difference between the two terms therefore is that in subscribed capital, there is just an agreement to pay; no actual money is received by the company. It is transformed into paid up capital when the transfer takes place.
