What is Authorized Capital ?

The Authorized Capital is the maximum amount of Financial boundary of collecting and issuing business capital from the capital market or from the publics in the form of IPO, Bonus Share, Right Shares or any other means company choose .

Authorized Capital is mentioned in Memorandum of Association of the company. Which has to be permitted by the authority or regulated body appointed by the government.



You may have interest about the followings
What is Paid-Up Capital ?
What is Public Limited Company ?
What is Profit ?
What is Dividend ?