Called-Up and Subscribed Capital

Subscribed and called-up capital distinguish an investor's agreement to take shares from the amount a company has required the investor to pay.

Subscribed and called-up capital describe different stages of a share commitment. Subscription records the shares or amount an investor has agreed to take, while a call makes some or all of an unpaid amount payable under the share terms and applicable law.

Choose the Correct Term

TermTriggerWhat it does not prove
Share CapitalIssuance of shares under the relevant frameworkBusiness value or total cash raised
Subscribed Share CapitalInvestor agreement accepted under subscription termsThat shares have been issued or fully paid
Called-Up Share CapitalCall, payment schedule, or amount already paid under the applicable definitionThat the company has collected the amount

Example Sequence

Suppose 100,000 shares have a $1 nominal value and are issued on terms requiring $0.40 per share initially. The nominal share capital is $100,000. If investors pay the initial $40,000, that amount is paid up and the remaining $60,000 is uncalled. A later valid call for $0.30 per share makes another $30,000 due; called-up capital becomes $70,000, but paid-up capital remains $40,000 until the call is paid.

The sequence can differ across jurisdictions and transaction documents. Subscription, allotment, issuance, call, due date, and receipt should therefore be verified as separate events.

This section is educational and does not provide legal, securities, accounting, transaction, or investment advice.

In this section

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Called-Up Share Capital

Called-up share capital is the amount on partly paid shares that a company has made payable under calls or the original payment terms.

Share Capital

Share capital is the legal or accounting capital represented by issued shares, usually measured at nominal or stated value rather than market value.

Subscribed Share Capital

Subscribed share capital represents shares or capital investors have agreed to take under accepted subscription terms, before considering calls and payment status.

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