A Public Limited Company (PLC) is similar to a Private Limited Company (Ltd), the major difference being that a PLC is allowed to raise money by selling shares to the public. The shares offered are required to have a minimum value of £50,000 and must be offered to the public via the London Stock Exchange or through the Alternative Investments Market. A Private Limited Company can comprise of just one sole director, whereas a PLC is required by law to have of at least two directors and one qualified company secretary. Every shareholder in a PLC is limited in liability to the amount unpaid on his or her shares. Income may be raised in a PLC through the issuance and sales of additional share through the stock exchange.
It is possible to convert a Private Limited Company to a PLC, but doing so requires re-registering with the Companies House.
The two directors of a UK Public Limited Company need not be of residents of the UK or even reside in the UK – a huge advantage for international investors looking to secure a foothold in the United Kingdom. Midford Accountants can help put together all the necessary paperwork to register your Public Limited Company through the Companies House regardless of where you are in the world. We can also help arrange for a secretary for your PLC, if required. Like the directors, the secretary need not be a citizen of the UK or reside in the country. He or she also must fulfil the following requirements:
A Public Limited Company has the right to issue as many shares as it wants, and with different conditions associated with each class of shares. Among the share types that can be issued by a PLC are bearer shares, cumulative preference shares, ordinary shares, preference shares, and redeemable shares. Some, like bearer shares, are legal instruments denoting ownership in the company while others, like preference shares, give the share owners the right to receive annual dividend payments before owners of other share classes.
A PLC is required to file their annual tax accounts with the Registrar of Companies and the Inland Revenue in the statutory time required for filing or risk facing civil penalties. Audit and account filings must include a report from both directors signed by a director or the company secretary; a balance sheet bearing a director's signature; a profit and loss statement; and any additional notes explaining the accounts.
Finally, a Public Limited Company must have a registered office maintained in the United Kingdom. Midford Accountants can help with every step of setting up and running a PLC in the UK, from arranging a registered office for your business to dealing with the accounts and yearly tax accounts. Our team of London based tax professionals are on hand to ensure everything goes smoothly so you and your partners can spend less time worrying about administrative tasks and more time focusing on your core business.