Public Limited Companies – PLC
There is substantial prestige in having PLC at the end of your company name, and if you require this, we can incorporate a public limited company for you.
With a PLC, there are capital requirements to adhere to, two directors and company secretary are required. We will tailor the company’s main objects to suit specific requirements.
A PLC must have a capital of £50,000 and at least 25% (£12,500) of this minimum value must be fully paid before the Registrar of Companies can issue a certificate for Commencement of Trading. This certificate must be issued before the company commences any business transactions.
A PLC status can be valuable if the company:
- Is to trade its shares to the public
- Can undertake any nature of business
- Can operate anywhere in the world
The primary difference between Public Limited Company (PLC) and a Private Limited Company (Ltd) is the Public Company’s shares may be offered for sale to the general public.
Advantage of a Public Company
- Offer securities for sale to the public
- Limited liability for members
- Own choice of company name
- A private company can be converted to a PLC
- Access to capital growth
- Creating a market for the company’s shares
- Creating a heightened public profile
- Incentive and rewards for employee commitment – by the use of shared option schemes
- Increasing the company’s ability to make acquisitions – its shares can be used as currency
- Enhanced status with customers and suppliers
- There are no restrictions on the directors nationality or residency
- Company shareholders and directors need not be from the UK
- There must be 2 directors (no maximum amount)
- Directors can be corporate bodies , there must be at least one individual
- All companies must appoint a company secretary
- Share Capital of £50,000 – 25% of which must be paid before any transaction can commence
- The company must have a registered office in the UK
We have PLC’s available immediately, fully inclusive of all necessary documentation, and the company name can be changed if required.
We also have 100 aged shelf companies up to 8 years old, which can be converted to PLC status.
Find out more about our PLC Administration and PLC Formation Fees.
Find out more about our PLC Administration services.
Going Public – The Benefits
Formacompany can offer a public limited company the opportunity to have their shares publicly traded and obtain a market valuation quickly, without cumbersome legal and accounting requirements, which could lead to excessive professional costs.
We assist companies looking to go public on the Frankfurt Stock Exchange and in London.
For the new London market:
- No minimum or maximum capitalisation
- No minimum prior trading record required
- No prescribed level of shares to be in public hands
- No complicated takeover rules
- Straight forward admission process with no requirement to produce a prospectus on admission
The benefits of taking your company public include:
- Your public company can raise capital for growth
- Listing of shares on the Frankfurt Stock Exchange or London provides a broader equity base for your company
- Offering shares to the public means your company can attract more funding
- Your company will obtain a market valuation
- Public companies have a higher valuation than private companies
- Liquidity is created for investors and provides them the option to trade their shares
- Your company can create a market for its shares by being public, the shares will thus have a market value and can be traded
- The shareholders of a public company will achieve a higher degree of liquidity for their shares than a private company
- Acquisitions by your company can be made with your publicly traded shares
- Your company can use share plans for employees
- Shares in a public company can be issued as a performance-based reward
- Issuing shares to an employee can offer tax advantages as capital gains taxes are generally lower than personal income taxes
Company’s Public Exposure
- Your public company may gain a significant amount of prestige and positive publicity
- A stock exchange listing can improve a company’s creditworthiness
- More people will be aware of a company as it is public
- Public companies will often receive media and analyst attention
that can be used to attract new shareholders and other possibilities
- Your company’s status could be enhanced with customers and suppliers
Mergers and Acquisitions
- Increased valuation of your public company can lead to opportunities for mergers and acquisitions
- Being public makes it easier for other companies to evaluate your company for potential partnerships
- Going public also creates a market for the shares, providing a potential exit strategy to investors