What is defined as paid-up capital?

Paid-up capital refers specifically to the amount of money that shareholders have actually paid to the company in exchange for shares. This figure represents the portion of a company's total share capital that has been funded by shareholders' contributions. In essence, it indicates the financial commitment of shareholders to the company, as it reflects the funds that the company has received from the sale of shares.

In contrast, the total amount of shares offered encompasses all shares that could potentially be issued and does not account for whether any payment has been made. The outstanding balance of share capital suggests an amount that may still be owed by shareholders but does not indicate the funds that have already been received. The value of capital not yet received by the company describes unpaid amounts or commitments that shareholders have not yet fulfilled and, therefore, cannot be considered paid-up capital. Therefore, the identification of paid-up capital as the sum contributed by shareholders is precise and aligns with the definition used in corporate finance and law.