Anonymous asked in 商業及金融其他 - 商業及金融 · 1 decade ago

The Difference of Authorized Capital & Issue Capital

According to the accounting polices, please let me know what the difference on authorized capital & issue capital are.

1 Answer

  • 1 decade ago
    Favorite Answer

    Authorized capital is the amount of capital that the Company is authorised to issue. Authorised did not mean you must issue them all out, for example you may have an authorized capital of HK$10,000.00 of divided into 10,000 ordinary shares of par value HK$1.00 per share. You can issue only one share of HK$1.00 each to establish the capital base of the company. That one dollar is your issued capital. The maximum shares you can issue in this case is 10,000 shares of HK$1.00 each because you have only HK$10,000.00 as authorized capital. If you say want to issue HK$100,000.00, you need to increase your capital. You can consult your lawyer or accountant in this case. Wishing you a prosperous year of the rat!

Still have questions? Get your answers by asking now.