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what is authorised capitla and subscribed capital

Answer Posted / chinmay dhapare

This capital is the amount with which the co. intends to start its business. It is also called as nominal or registered capital coz in co's. this capital is not raised.The Authorized capital is divided into shares of fixed amount. Maximum amount of this capital depends upon the business requirement of each co. There are no legal restriction upon its max. limit.

Subscribed Capital: It is that part of issued capital which is subscribed, i.e taken up by the public. It is the capital for which applications are received by the public.

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