A business example
A fictional company has an authorised capital of ₹10 lakh and has issued 40,000 shares with a face value of ₹10, all fully paid.
Authorised
₹10 lakh is the stated authorised capital in this example.
Issued and paid
40,000 × ₹10 = ₹4 lakh has been issued and paid as share capital.
Remaining capacity
₹6 lakh is unused authorised face-value capacity, not cash in the bank.
What this shows
These figures do not tell you the company's market valuation. Any new issue still needs the relevant approvals and documentation.
What it is often confused with
Share capital is not the same as the company's valuation, revenue or bank balance.
What to look at in your business
Read the capital figures alongside allotment records and the register of members.
Context and further reading
This entry explains the business term. The related guide below provides the next layer of context; any applicable legal test depends on the transaction and relevant period.
Kosha.Services · Updated 2 October 2026