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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. 
 
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