A public limited company (PLC) is a limited liability company whose shares may be freely sold and traded to the public with a minimum share capital of £50,000 and usually with the letters PLC after its name.
Public limited companies will also have a separate legal identity.
A PLC can be either an unlisted or listed company on the stock exchanges. There are advantages of becoming a public limited company, especially if you are interested in raising capital for your business.
What are the advantages of setting up a Public liability company instead of a Private limited company?
- A PLC can have a huge magnitude of capital.
- It is legally authorised to trade on stock exchanges.
- There is no limit to the maximum number of shareholders in the public limited company.
- Shareholders of a PLC are entitled to transfer their shares freely without needing the consent of someone.
What structure does a PLC company need to have?
- A minimum of two shareholders.
- A minimum of two directors.
What are the liabilities of a public limited company?
- As a PLC deals with public money, it has to make heavy compliance checks with regards to income tax and regulated bodies.