Paid-up Capital

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asked on Apr 17, 2004 at 23:52
by   Learner
I want to start a Private Limited Company, what is paid-up capital? How does it work?
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answered on Oct 21, 2008 at 20:12
by   Taiko
to Wong,

1) Yes, Min RM2 in Malaysia. Shares are usually issued at $1 per share, hence u have 2 shareholders (one holding 500,000 $1 shares, and the other: 100,000 $1 shares.)

2) Usually the case, BUT cash injected will be used to buy Equipment, or property or machinery or office setup. Actually anything needed to be purchased to conduct your line of business.

3) After u set up a company, u can always top-Up the paid-up capital later on when ur business is well and running. Bank borrowings ARE usually not used to set up the 1st company as such, maybe subsequent 2nd or 3rd Sdn Bhd. As well, authorised capital are usually set at RM 100,000 or a RM2 pay up capital Sdn Bhd. as far as i know, they are 2 separate issues.

hope my answers are of some help to you.

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answered on Feb 18, 2009 at 21:30
by   Qaty
another question..
Is there any other way of increasing paid up besides pumping in money?
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answered on Sep 9, 2010 at 16:40
by   Anno
to Qaty

You may want to sell shares if you're PLC instead of injecting more funds to raise paid up capital. Otherwise get new director to invest.
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answered on Dec 2, 2010 at 16:25
by   Rookie
Hi Everyone,

Just a question, say a certain business license requires the company applying to have a minimum paid up capital of 300K. Legally yes, that would mean the amount of money reflected in the company's account. But in practice, will that actually be the case especially if the company has been set up newly, in order to apply for the license?

Thank you.
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answered on Aug 28, 2011 at 20:51
by   kubber
i still have no clue about paid up capital
so if i want to start a company
and the law says, need a paid up capital of 100k
so me and my partner need to have that 100k?
in the bank?or pay to someone?
thank you
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answered on Oct 8, 2011 at 09:30
by   impale
If im not wrong if the law state that the paid-up capital is 100k. you are required to pay up 100k into the company. As for where the money will be paid/go, it will be going into the company bank account.
May be wrong on some details. Consult any accountant or legal services for help.
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answered on Jan 10, 2012 at 15:38
by   BB specialist
I'm new is business world, I have a few questions about paid-up capital. Please help me to solve it. thanks!

1) Does registered capital has minimun? such as minimum $100,000 registered capital.

2) When I found a company with $100,000 register capital, but we only contributed $40,000 paid-up capital. If we are not going to contribute the $60,000 balance anymore, does't it causing any trouble?

3) Do we need lawyer stamp for every time of contribution? If I contribute $30,000 ,share holder B contribute $10,000 how to get the certificate to certify I'm holding $30,000 share?

4) If base on case above, does my share $30,000 is occupying 75% in the company?

Thank you!
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answered on Nov 20, 2012 at 17:03
by   Puzzled
I know of a dormant company with the authorised capital of 100k and Paid-up Capital of 50k. But this company not even has a bank account and its office actually borrowing another company's office.

I am puzzled where does the 50k paid-up capital goes?
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answered on Nov 20, 2012 at 17:06
by   Puzzled
I am also wondering to whom this 50k Paid-up capital paid to?
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answered on Nov 22, 2012 at 23:47
by   Raymond Chu
Paid-up capital in simplicity means company assets
worthed the monies contributed in setting up by
denoting its value with its equivalent of share
value per unit.

Hence, if the total start up capital takes you to
invest in movables and tangible assets, then sum
them up to a cash value and you have your paid-up
capital in the form of movable tangible assets.

Financing in terms of cash value and cash funds
are added up together to form the crux of
paid-up capital.
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