PLC FAQs

WHAT ARE THE BENEFITS OF A PLC? 

The shareholders of a PLC have limited liability. Capital can be raised through issuing shares and the business can be floated on the stock exchange or other alternative investment market (note this is not a necessity of forming a PLC). PLC’s can also offer you spread risk, more finance options and increased status. These can all help enabling future expansion and increased powers when negotiating with suppliers.

WHAT ARE PLCs USED FOR? 

Mainly for high-profile and larger companies trading internationally.

HOW IS A PLC DIFFERENT TO A LIMITED COMPANY? 

A PLC must issue a minimum of 50,000 x £1 shares, and a quarter must be paid up. A limited company only need issue 1 x £1 share.

WHAT IS THE LIABILITY OF A PLC? 

With a limited company as above the liability would only be from £1 payable to creditors. With a PLC the liability would be £50,000 minimum.

CAN I PUT GOODS, EQUIPMENT OR VEHICLES INTO THE COMPANY INSTEAD OF MONEY? 

Yes, you can introduce capital equipment up to the value, which then becomes a company asset and you would have no further liability if it has true valuation.

IS A PLC MORE RISKY THAN LTD? 

Yes, if not run properly. If you are just starting out or have a small to medium sized business, we would not recommend forming a PLC.

COULD I HAVE A LTD COMPANY AND A PLC? 

Yes, some clients use the PLC for the trading image and the Ltd for the risk element and contractual obligations. Both companies must be run totally separately.

IS CREDIT EASIER TO OBTAIN? 

Yes, because anyone dealing with the company knows you have assets of at least £50,000.

DOES MY PLC HAVE TO BE FLOATED? 

No, not at all, most PLCs are privately run and controlled. It is up to the Directors to float the company and issue more shares.

CAN I OFFER SHARES TO THE PUBLIC TO GET INVESTORS IN? 

Yes, this would be an option available to you. Our expert team are on hand to advise what is best for you and guide you through the process so if you have any questions please get in touch.

Which Type of Limited Company is Right for you?

Limited Companies 

Limited liability can protect the owner of a company from personal loss or even bankruptcy, which a sole trader could not avoid. Take the stress out of making it official and form your company with the National Business Register here.

PLC (Public Limited Companies) 

Owning a PLC offers prestige and perceived status. PLC companies do not have to be listed on the Stock Exchange or Alternative Investment Market and many PLC shareholders/directors choose to retain control over their company at all times. Form your PLC with the National Business Regitser here.

Guarantee Companies 

Guarantee companies are usually run for the benefit of members of a club or association to raise funds for the benefit of others. The “guarantors” give a personal amount they will pay in the event the company fails and owes debts. If they wish, members can give an unlimited guarantee and be responsible for all debts. Can also be used for flat management. Form your guarantee company with the National Business Register here.

LLP (Limited Liability Partnerships) Companies 

An option for companies with two or more owners, the partners can limit their personal liability and avoid putting their personal assets at risk. Mostly used by accounting and law firms. Form your LLP with National Business Regitser here.

CIC (Community Interest Company) 

This is a limited company with extra features to mark it out as a Social Enterprise. CIC’s are easy to set up, with all the flexibility and certainty of the company form, but with some special features to ensure they are working for the benefit of the community rather than private individuals. Form your CIC with National Business Register here.