Capital is that portion of wealth which is set aside for future production and is either fixed or circulating.

The former is represented by land, houses, factories, workshops, machinery, lease, goodwill or other things necessary for the carrying on of business, and not of a nature to be sold or exchanged.

Circulating or floating capital is money provided for the purchase of raw material, the remuneration of employees, and other working expenses in the ordinary course of business.

In a general way, the term capital signifies the money and money-value invested in a business undertaking. The actual capital of a limited liability company is the amount that its shareholders may have subscribed for the carrying on of the undertaking.

The term, however, has a varied application. Thus the full sum named as capital in the Memorandum of Association is called the "nominal," "authorised," or "registered" capital, which the sum represented by the shares actually taken up is called the "subscribed capital," the portion remaining unpaid or uncalled up being styled "unpaid" or "uncalled" capital.

The principal sum of a loan is also called "capital."

Capitalisation is the act of providing money to be used as capital in a commercial or other undertaking.