Authorized Capital

In One Line

The maximum value of shares a company is legally permitted to issue — a ceiling, not the amount actually invested.

A company might set its authorized capital at ₹1,00,000 but only actually issue ₹50,000 worth of shares at incorporation — that issued portion is the paid-up capital. Raising the authorized capital later (to issue more shares, for example during a funding round) requires a formal amendment.