Authorized capital & Paid-up capital

Authorised Capital / Paid-Up Capital / Issued Shared Capital

[With effective from 31 January 2017, authorised capital was no longer applicable under the new Companies Act 2016]

What is Authorised Capital?
A company need to confirm its authorised capital before proceed to the registration with SSM (Suruhanjaya Syarikat Malaysia). The amount of authorised capital will be reflected in the Memorandum of Association of every Company.
Why authorised capital?
A company can only issue its paid-up capital up to the authorised capital that registered with SSM.
How it works
If a company has authorised capital of RM100,000, then company can only increase its paid-up capital up to the maximum of RM100,000 at any time.
However, if that company intends to increase its paid-up capital up to RM250,000, the company needs to increase its authorised capital from 100,000 to 500,000 before it can increase its paid-up capital.
Any company is not allowed to increase paid-up capital beyond its authorised capital as stated in the M&A of the company.
Registration fee for Authorised Capital
Every company may increase its authorised capital with SSM by paying the relevant registration fee to SSM.

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