# How do we calculate paid-up capital?

## How do we calculate paid-up capital?

Paid-in capital formula It’s pretty easy to calculate the paid-in capital from a company’s balance sheet. The formula is: Stockholders’ equity-retained earnings + treasury stock = Paid-in capital.

## What is issued and paid-up capital?

Issued share capital is the amount of money that you, as a shareholder have to pay in exchange for a number of shares of the Company whilst paid-up share capital is the actual amount of money that you paid for those shares.

Where is paid-up capital in financial statements?

Paid-up capital is listed under the stockholder’s equity on the balance sheet. 2﻿ This category is further subdivided into the common stock and additional paid-up capital sub-accounts. The price of a share of stock is comprised of two parts: the par value and the additional premium paid that is above the par value.

### What is the minimum paid up capital for private limited company?

Rs.1 lakh
The Companies Act, 2013 earlier mandated that all Private Limited Companies have a minimum paid-up capital of Rs. 1 lakh. This meant that Rs. 1 lakh worth of money had to be invested in the company by purchase of the company shares by the shareholders to start the business.

### What are the types of share capital?

7 Main Types of Share Capital | Company Accounts

• Authorised/Nominal/Registered Capital:
• Issued Capital:
• Subscribed Capital:
• Called-Up Capital:
• Uncalled Capital:
• Paid Up Capital:
• Reserve Capital:

How important is paid up capital?

Paid-up capital is important because it’s capital that is not borrowed. A company that is fully paid-up has sold all available shares and thus cannot increase its capital unless it borrows money by taking on debt. Paid-up capital can never exceed authorized share capital.

## How can a private company increase paid up capital?

Following are the methods through which a company can increase its paid up share capital:

1. Private placement.
2. Right issue.
3. Preferential basis.
4. Sweat equity shares.
5. Conversions of loans or debentures into shares.
6. Issue of bonus shares.

## What is difference between share and share capital?

Share capital is the total of all funds raised by a company through the sale of equity to investors. Issued share capital is the value of shares actually held by investors. Subscribed share capital is the value of shares investors have promised to buy when they are released.

What is the one part of share capital?

As per section 43 (a) equity share capital may be divided on the basis of voting rights and differential rights(DVR) as to dividend, voting rights or otherwise according to the rules.

### Why do companies increase paid up capital?

5 Main Reasons you want to increase your company’s paid-up capital. Suppliers & Customers – Your suppliers or customers may not want to deal with you if your company is having low level of paid-up capital. Corporate Image – You may want to re-branding your company’s image by having healthy capital level.