Company Accounts

Share Capital

Easy

What is the other name of registered capital?

Subscribed Capital

Issued Capital

Nominal Capital

Reserve Capital

✅ Correct Option: 3

Registered Capital is the maximum amount of share capital that a company is authorized to issue to shareholders as per its Memorandum of Association. This limit is stated in the capital clause of the company's constitutional documents.

Nominal Capital is simply another name for Registered Capital. Both terms refer to the same concept - the authorized limit of capital.

Understanding other terms mentioned:

Issued Capital → Portion of registered capital that is actually offered to the public for subscription

Subscribed Capital → Portion of issued capital that investors have agreed to buy

Reserve Capital → A special portion of uncalled capital that can only be called upon during the winding up of the company (created by passing a special resolution)

The relationship can be shown as: Registered/Nominal Capital ≥ Issued Capital ≥ Subscribed Capital

Therefore, Option 3: Nominal Capital is correct.

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In case of issue of shares, the company has to get minimum subscription within__________ from the date of the issue of the prospectus.

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The directors of a company forfeited 400 equity shares of Rs. 10 each fully called up on which Rs. 1,600 had been paid. All the forfeited shares were reissued upon payment of Rs. 3,000. Calculate the amount transferred to Capital Reserve

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Which of the following are correct with respect to Rule 3 of the Companies (Incorporation) Rules, 2014 for One Person Company?

A. Only a natural person being an Indian citizen and resident in India can form one person company.

B. It cannot carry out non-banking financial investment activities.

C. Its paid up share capital is not more than Rs. 50 Lakhs.

D. Its average annual turnover of three years does not exceed Rs. 5 Crores.

Choose the correct answer from the options given below:

2025: 14 May Shift 2

Which of the following is called Registered capital of a company?

What is the other name of registered capital?

Solution

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