In a Private Limited Company in Pakistan, subscription money is the amount of money that shareholders are required to pay for their shares in the company. When a shareholder subscribes for shares in a Private Limited Company, they are agreeing to pay the subscription price in exchange for the shares.
The subscription price for shares in a Private Limited Company in Pakistan is typically specified in the company’s articles of association. It may be a fixed amount or a percentage of the par value of the shares.
Subscription money is an important source of capital for a Private Limited Company in Pakistan. It is used to finance the operations of the company and to invest in the business.
It’s worth noting that subscription money is not the same as the authorized capital of the company, which is the maximum amount of capital that the company is permitted to issue to shareholders. The authorized capital is typically expressed in terms of the number of shares and their par value, while the subscription money is the actual amount of money paid by shareholders for the shares.