AbacusHKCPA - Company Formation and Company Registration by Hong Kong Accountants (HKCPA) |
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What is the difference between authorized share capital and issued share capital? Authorized Share Capital
Authorized share capital is the maximum amount of shares that a company is allowed to issue. For example, the ready made company that we are selling comes with HKD 10,000 authorized share capital splitting into 10,000 shares. Even though he is paying HKD 1,000 for a share of your company, HKD 999 of it is premium. he is buying only 1 share and entitle to 1 voting right only. Issued Share Capital When old shares (shares already issued) are changing hand, stamp duty also need to paid. |