Paid Up Capital is the amount of a Company's capital that has been funded by shareholders. Paid-up capital can be less than a company's Authorized Capital because a company may not issue all of the shares that it has been authorized to sell. Paid Up Capital can also reflect how a company depends on equity financing. A company that has fully Paid Up all available shares, cannot increase its capital unless it increases the Authorized Capital to sell more shares.

As of 31st January 2016, the authorized capital concept has been abolished by SSM. Under the CA 2016, a company is no longer required to state its authorized capital. The following information is for reference for the old Companies Act only.

Directors will need to decide their initial Authorized Capital when forming a Company. The minimum Authorized Capital is RM400,000 and minimum Paid Up Capital can be RM2.00 where RM1.00 for each Directors. Assuming there are only 2 Directors who are also the Shareholder.

At any time, the Company Authorized Capital may be increased when its Paid Up Capital reaches the limit. For example, initially Company A has an Authorized Capital of RM400,000 and Paid Up Capital of RM300,000. Company A then appointed a new director and plans to allot RM150,000 shares to him/her. But RM300,000+RM150,000 exceeds the Authorized Capital of RM400,000. Therefore, Company A will need to increased its Authorized Capital to RM500,000.

Different range of Authorized Capital will have different fees payable to SSM as follow: