Here’s a clear explanation of Paid-Up Capital and Authorized Capital as defined by SECP (Securities and Exchange Commission of Pakistan), useful for business owners or startups registering a company in Pakistan:

🏛 Paid-Up Capital vs Authorized Capital – SECP Pakistan Guide

When registering a company with the SECP, understanding these two terms is crucial:

💼 Authorized Capital – (Also called “Nominal Capital”)

Definition:
The maximum amount of share capital that a company is legally allowed to issue to shareholders, as stated in the company’s Memorandum of Association.

• It sets a ceiling but does not need to be fully issued immediately.

• You can increase it later by passing a special resolution and updating SECP.

✅ Common Authorized Capital for a Private Limited Company:
PKR 100,000 to PKR 10,000,000 (depending on business scale)

SECP Fee increases with higher authorized capital.

💰 Paid-Up Capital – (Also called “Issued & Subscribed Capital”)

Definition:
The actual amount of money received from shareholders in exchange for shares issued. This is the real investment injected into the company.

• It must be less than or equal to the authorized capital.

• It can be increased over time by issuing more shares.

✅ Minimum Paid-Up Capital Requirement:
As of now, there is no minimum paid-up capital for a private limited company in Pakistan — even PKR 100,000 is acceptable.

🔄 Example:

Let’s say you register a company with:

• Authorized Capital: PKR 1,000,000

• Paid-Up Capital: PKR 100,000

You’re legally allowed to issue shares worth up to PKR 1,000,000, but initially, you’ve only issued shares worth PKR 100,000.