What is a Public Limited Company (PLC)? A guide for SMEs
Requirement | What this means in practice |
|---|---|
Minimum of 2 directors | A PLC must have at least two directors. At least one director must be a natural person, meaning a real individual rather than another company. |
Qualified company secretary | Unlike a Private Limited Company, a PLC must appoint a company secretary. This person must be suitably qualified, such as an accountant or a chartered company secretary. |
Minimum share capital | A PLC must have a minimum share capital of £50,000. At least 25% (£12,500) must be paid up before the company can begin trading. |
Trading certificate | Before starting business activities, a PLC must obtain a trading certificate from Companies House confirming that these requirements have been met. |
Advantages of a PLC: | Disadvantages of a PLC: |
|---|---|
Access to large-scale funding — ideal for growth and expansion | Stricter regulatory requirements and tighter reporting deadlines |
A more prestigious image — helps to increase credibility and trust among potential lenders, partners, and customers | Higher transparency comes with greater public scrutiny |
Easier transfer of shares and ownership for greater flexibility | Risk of hostile takeovers |