Authorised capital is the company’s permitted share-capital limit under its constitutional documents. Issued, subscribed and paid-up capital describe different aspects of the shares and payment position. These figures should not be used interchangeably when preparing incorporation, ownership records or a quotation. [1]
Match capital to the ownership plan
Decide the share denomination, number of shares and subscriber split. Consider immediate funding needs and a reasonable route for later investment. A higher authorised figure does not prove that the company has received that much money. Record the actual subscription and payment arrangements separately.
Understand the cost and filing impact
State stamp duty and some filing calculations can depend on authorised capital. An increase later may require corporate approvals and filings. Compare that change process with the current need rather than choosing a large number simply because a filing-fee concession exists. The quotation should identify which capital figure drives each charge. [1] [2]
Practical preparation checklist
- Share denomination and intended shareholding percentages.
- Authorised, subscribed and paid-up amounts separately.
- Subscription payment and bank evidence plan.
- Cost comparison and future capital-increase route.
Illustrative example
A company has authorised capital of ₹10 lakh but subscribers initially take shares worth ₹1 lakh. The ₹10 lakh ceiling is not evidence that ₹10 lakh was paid into the bank. These numbers belong in different fields and supporting records.
Avoid this mistake
Do not use turnover or estimated business value as a substitute for share capital. The Zeofox standard incorporation quotation currently supports authorised capital up to ₹15 lakh; this is the product’s quotation scope, not a universal legal maximum for companies.
Official sources & further reading
Sources support the topics discussed; linking a source does not imply government endorsement. Procedural and financial conditions must be checked against current notifications and the relevant period.
Prepared 2026-10-29. Published 2026-10-29. Source-based editorial guide; no individual professional reviewer is asserted.
This is general educational information, not a case-specific legal, tax or investment opinion. Contact the team to discuss a defined assistance scope.
