Authorized capital is the maximum capital that a company is authorized to rise.

1. Issued capital is that part of the authorized capital which is offered by the company for being subscribed by members of the public or anybody.

2. Subscribed capital is that part of the issued capital which is subscribed (accepted) by the public.

3. Called up capital is a part of subscribed capital which has been called up by the company for payment. For example, if 10,000 shares of Rs. 100 each have been subscribed by the public and of which Rs. 50 per share has been called up. Then the subscribed capital of the Company works out to Rs. 1, 00,000 of which the called up capital of the Company is Rs. 50, 0000.

4. Paid Up capital refers to that part of the called up capital which has been actually paid by the shareholders. Some of the shareholders might have defaulted in paying the called up money. Such defaulted amount is called as arrears. From the called up capital, calls in arrears is deducted to obtain the paid up capital.