Nominal Capital is also known as Registered Capital or Authorized Capital. This is the maximum amount of share capital that a company is authorized to issue as per its Memorandum of Association.
The relationship between different types of capital can be understood as:
Registered/Nominal/Authorized Capital (Maximum limit as per MOA)
→ Issued Capital (Part offered to public)
→ Subscribed Capital (Part taken up by subscribers)
→ Called Up Capital (Part demanded by company from subscribers)
Since Nominal Capital represents the capital registered in the company's constitutional documents (Memorandum of Association), it is also called Registered Capital.
The other options represent different stages in the capital structure:
- Subscribed Capital is the portion actually taken up by shareholders
- Called Up Capital is the amount demanded from subscribers
- Issued Capital is the portion offered for subscription
Answer: Option 3 - Registered Capital