Company Formation Specialists
Public Limited Company (PLC)
A Public Limited Company (PLC) is a company that meets the following criteria:
- The company's Memorandum must state that it is a public company
- The Minimum issued share capital is £50,000. A minimum of 25% of each issued share must be fully paid up plus the whole of any premium paid for the share. (For example, a company with a share capital of £50,000 is required to have a minimum of £12,500 fully paid up)
- The company must have a minimum of 2 directors and one secretary
- The company's secretary must meet the criteria set out on Section 273 of the Companies Act 2006. This states that the secretary must have the necessary qualifications and (or) experience required for the position (i.e. a Solicitor or Chartered Accountant)
- The company must have an annual audit irrespective of turnover by a qualified auditor.
- Before the PLC can trade or borrow money, it must obtain a Trading Certificate from Companies House by completing form 117, witnessed in the presence of a solicitor. This certificate confirms that the company has met the share capital requirements as set out above. This does not apply where the company has re-registered as a Public Limited Company from a Private Limited Company.
As the minimum issued share capital of a PLC is a substantial amount, a PLC may be seen to have more credibility to its proposed creditors than a limited company whose issued share capital may be as little as £1.
A PLC may be able to raise capital by selling its shares through a recognised stock exchange. This option is not available to private companies. A stockbroker will be able to assist you in providing information as to how to sell your shares to the public.
A Private Limited Company may re-register as a Public Company, provided it meets the above criteria. The company must revise its Memorandum & Articles to those of a public company and provide confirmation from an auditor that it meets the minimum share capital requirements