Paid-up capital: meaning, examples and why it matters
Paid-up capital is the amount shareholders have actually paid for shares a company has allotted. It decides small company status, now up to ₹10 crore.
Short answer
Paid-up capital is the total amount shareholders have actually paid to a company for the shares allotted to them, including amounts credited as paid up, such as bonus shares. It is shown in the balance sheet under share capital and is one of the tests for small company status and several compliance thresholds.
- Defined in
- Section 2(64), Companies Act 2013
- Small company limit
- Paid-up capital up to ₹10 crore (from 1 Dec 2025)
- Whole-time CS trigger
- Paid-up capital of ₹10 crore or more
How paid-up capital works
Suppose a company has authorised capital of ₹10 lakh and allots 50,000 equity shares of ₹10 each to its founders. If the founders pay the full ₹10 per share, paid-up capital is ₹5 lakh. If shares are issued at a premium, only the face value counts towards paid-up capital; the premium goes to the securities premium account.
Paid-up capital rises with every fresh allotment, rights issue, private placement or bonus issue, and falls only through a formal capital reduction approved under section 66 or a buy-back under section 68. Calls in arrears on partly paid shares are deducted when reporting it.
Thresholds linked to paid-up capital
Several Companies Act rules use paid-up capital as a trigger. A private company with paid-up capital up to ₹10 crore and turnover up to ₹100 crore qualifies as a small company after G.S.R. 880(E) dated 1 December 2025, which earns lighter compliance. A company with paid-up capital of ₹10 crore or more must appoint a whole-time company secretary.
- Small company status (with the turnover test)
- Whole-time company secretary requirement
- XBRL filing and secretarial audit thresholds, read with turnover tests
Why it matters for startups
Investors read paid-up capital alongside the cap table to see who owns what. Lenders and tender authorities also look at it as a sign of commitment. Because there is no minimum paid-up capital requirement, founders can start small, but they should track how fundraising pushes the company across compliance thresholds.
Related services
Sources
- Ministry of Corporate Affairs (MCA) portal
- TaxGuru: 25 major tax, GST and company law reforms of 2025
Written by the Refogo Editorial Team from the official sources above and checked on 2026-10-31. Laws, rates and due dates change, and authorities often extend deadlines, so confirm your own case with a qualified professional. This is general information, not legal or tax advice. Read our editorial policy or report an error to support@refogo.com.
Common questions
What is the minimum paid-up capital for a private limited company?
There is no minimum. The requirement of ₹1 lakh for private companies was removed by the Companies (Amendment) Act, 2015.
Does securities premium count as paid-up capital?
No. Only the face value of allotted shares counts. Any premium received is credited to the securities premium account and shown separately under reserves.
Where can I check a company's paid-up capital?
It appears in the company master data on the MCA portal and in the audited balance sheet filed with Form AOC-4.