how does “paid up capital” work in relation to starting your own business?

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I have aspirations in the next 5 or so years (COVID permitting) to start a small business overseas. Early days but I’m just doing some research on different countries I’m interested in.

Each one has a different requirement for Minimum paid up capital – but I’m confused as to what that means exactly?

Let’s say the minimum paid up capital amount is 200k. Is that money I have to invest into the company from the get go? Or I have to prove I have the funds on hand? Or I have contribute a % of that?

In: Economics
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