Authorised Capital

Tax Glossary Definition

Authorised Capital

Authorised Capital – The maximum amount of share capital that a company is legally allowed to issue to its shareholders, as specified in its Memorandum of Association (MOA). It represents the company’s overall potential equity base and sets an upper limit for raising funds through the issuance of shares.

Example: If a company’s authorised capital is ₹10 crore, it may issue shares worth up to ₹10 crore to investors.

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