Why paid-up capital matters to a first-time founder
The figure shows capital actually received on shares, which may matter for statutory filings, creditor protection and regulated minimum-capital tests. Assuming issued capital has been fully paid can materially overstate the resources contributed by shareholders.
Examples of paid-up capital
A company issues 50,000 shares requiring ¥100 each but initially calls for only ¥60 per share. Shareholders pay ¥3 million, so paid-up capital is ¥3 million. The remaining ¥2 million is unpaid or uncalled, depending on the terms and jurisdiction.
Common misunderstanding
It is not the same as authorised or issued capital. Authorised capital is a legal ceiling where that concept exists; issued capital covers shares allotted; paid-up capital covers the required amounts actually received. Some jurisdictions no longer use every category.
When to use it
Use it when checking incorporation records, share subscriptions, statutory returns or financing conditions. Reconcile payments to the share register and bank records. Ask a local accountant or lawyer how partly paid shares and capital accounts are treated.