Understanding Authorized Capital & Paid up capital for companies in India [Whiteboard Friday]


Once you have decided to start a pvt. ltd company you need to decide how much capital you will infuse into the business. In this episode of eLagaan Whiteboard Friday, the eLagaan team explains concept behind authorized capital and paid up capital while registering a company in India.

What should you do when you are starting a business with your own money or when you are getting a loan or you getting a venture or angle funding (investor). Also talks about scenario when you start a business you may not know how to keep aside stocks for future partner, investor or employee (ESOP).

Written by eLagaan

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eLagaan offers end to end CA, CS, Business Legal & Payroll services for businesses in India. It specialises in formulating investor friendly structures & terms, staying compliant, setting up best practices desired by founders, investors & employees. This facilitates businesses to grow & scale with ease and stay fundable, sale-able and compliant.