What type of capital reflects the actual subscription paid by shareholders after the articles of incorporation are approved?

Paid-up capital reflects the actual amount that shareholders have paid for their shares after the articles of incorporation are approved. This represents the funds contributed by shareholders in exchange for equity ownership in the corporation.

When a corporation issues shares, it often states a certain amount of authorized capital, which is the total number of shares the company can issue. However, not all of this authorized capital may be issued or subscribed to initially, and hence not all reflects actual payments made by shareholders.

On the other hand, unissued capital refers to shares that the company is authorized to issue but has not yet sold to shareholders. Registered capital typically refers to the total amount of capital that is registered with a governmental authority, which can encompass both paid-up capital and authorized capital, but does not specifically indicate the amount that has actually been paid by shareholders.

Thus, the correct answer highlights not just the ownership but also the actual financial commitment made by shareholders, making it clear why paid-up capital is the relevant term in this context.