Paid-up capital, also known as contributed capital or share capital, refers to the portion of a company's authorized capital that shareholders have paid for in exchange for issued shares. Paid-up capital represents the total amount of equity capital contributed by shareholders to finance the company's operations, investments, and growth initiatives. It is recorded on the balance sheet as part of shareholders' equity and reflects the actual funds received by the company from the sale of its shares. Paid-up capital provides a source of permanent funding for the company, as shareholders cannot reclaim their contributions unless the company undergoes a share buyback or distributes dividends. Paid-up capital serves as a measure of the company's financial strength, stability, and solvency, as it represents the shareholders' tangible commitment to the business and their willingness to invest capital for long-term growth and value creation. Investors and creditors often assess a company's paid-up capital to evaluate its capital structure, leverage ratios, and ability to support future growth and profitability.