Capital is the amount that is invested in the company to start and run the business. Every business needs capital without it, no business can start or grow whether it is a sole proprietor, private limited company or any public company even in LLP the partners contribute capital to start the business. At the time of registration of the company, the shareholders have to subscribe to some shares in respect of which they will invest the amount in the company and this capital amount is called paid-up capital. All the companies have to fix the amount of capital at the time of company registration and that amount has to be deposited in the bank account of the company after registration. But this amount can be increased or decreased after registration whenever it is required.