This guide explains what a public limited company is, how it works, key requirements, advantages, risks, and whether forming a PLC is the right move for your business in 2026.
What Is a Public Limited Company (PLC)?
A public limited company is a type of limited liability company that can offer its shares to the public. Shareholders’ financial exposure is limited to the value of their investment.In simple terms, a PLC:
- Is a separate legal entity
- Can sell shares to the general public
- Provides limited liability protection
- May be listed on a stock exchange (but does not have to be)
Public Limited Company Meaning and Key Features
A PLC differs from other company types through several defining characteristics.Limited Liability
Shareholders are not personally responsible for company debts beyond their shareholdings.Ability to Raise Public Capital
PLCs can issue shares to external investors, institutional funds, and the wider public.Minimum Share Capital Requirement
A UK PLC must have:- At least £50,000 nominal share capital
- A minimum of £12,500 paid up
Governance Structure
PLCs typically require:- At least two directors
- A company secretary (often professionally qualified)
- More formalised governance procedures
Enhanced Disclosure and Reporting
PLCs are subject to more extensive transparency and compliance obligations.PLC vs LTD — What’s the Difference?
Businesses frequently compare a public limited company (PLC) with a private limited company (Ltd).A PLC is designed for public investment and large-scale capital raising, while an Ltd structure suits privately owned businesses with fewer regulatory obligations.
Key distinctions include:
- Share ownership: PLC shares may be publicly traded; Ltd shares are privately held
- Capital requirements: PLCs require minimum share capital; Ltds do not
- Compliance burden: PLCs face stricter reporting and governance standards
- Investor access: PLCs can raise funds from the public
Who Can Set Up a Public Limited Company in the UK?
Any eligible business meeting statutory requirements can form a PLC.Key conditions include:
- Sufficient minimum share capital
- Appropriate director appointments
- A compliant governance framework
- Proper incorporation documentation
How to Form a Public Limited Company (Step-by-Step)
Forming a PLC follows a structured process.Step 1 — Choose a Company Name
The name must comply with Companies House rules and end with “PLC”.Step 2 — Prepare Incorporation Documents
This includes:- Memorandum of Association
- Articles of Association
Step 3 — Appoint Directors and Company Secretary
PLCs require at least two directors and a suitably capable secretary.Step 4 — Allocate Share Capital
Ensure the company meets the £50,000 capital threshold, with the required paid-up portion.Step 5 — File With Companies House
Submit incorporation forms and statutory details.Step 6 — Register for Taxes
Depending on activity:- Corporation Tax
- PAYE
- VAT
Step 7 — Prepare Governance Framework
Implement internal controls, reporting systems, and compliance procedures.Public Limited Company Share Capital Explained
Share capital plays a central role in PLC formation and operations.PLCs may issue:
- Ordinary shares
- Preference shares
- Different share classes with varying rights
- Initial Public Offerings (IPO)
- Rights issues
- Placings
Advantages of Forming a PLC
A PLC structure offers several strategic benefits.- Access to significant capital
- Enhanced corporate credibility
- Improved share liquidity
- Limited liability protection
- Greater market visibility
Disadvantages and Risks of a PLC
PLCs also introduce complexity.- Higher administrative costs
- Extensive reporting obligations
- Increased regulatory scrutiny
- Governance demands
- Shareholder pressure
Directors and Governance of a Public Limited Company
PLCs operate under more formal governance standards.Directors must comply with:
- Fiduciary duties
- Statutory obligations
- Corporate governance best practices
- Compliance oversight
- Board procedures
- Regulatory filings
Reporting and Compliance Obligations for PLCs
PLCs face elevated compliance requirements.These include:
- Filing annual accounts
- Submitting confirmation statements
- Mandatory audits
- Shareholder disclosures
- Regulatory filings (if listed)
Public Limited Company Tax Obligations
PLCs are subject to standard UK tax frameworks, including:- Corporation Tax
- PAYE and NIC
- VAT (where applicable)
- Dividend distributions
- Cross-border operations
- Group structures
How Public Limited Companies Raise Capital
PLCs can raise funding through:- Public share offerings (IPO)
- Secondary share issuance
- Debt instruments
- Institutional investment
Common Mistakes When Setting Up or Running a PLC
Businesses often underestimate:- Compliance complexity
- Governance requirements
- Investor communication obligations
- Cost of regulatory adherence
Is a Public Limited Company Right for Your Business?
A PLC is typically appropriate where a business:- Requires substantial capital
- Seeks public investment
- Operates at scale
- Has robust governance capabilities
How Persona Finance Helps With PLC Formation and Compliance
At Persona Finance, we support businesses through every stage of PLC planning and operation.Our services include:
- Corporate structure assessment
- PLC formation and incorporation
- Share capital structuring
- Governance and compliance setup
- Tax registration and optimisation
- Ongoing accounting and reporting
👉 Speak with Persona Finance to evaluate whether a PLC structure fits your growth and investment objectives.
Frequently Asked Questions About Public Limited Companies
What is the minimum capital requirement for a PLC?A UK PLC requires £50,000 nominal share capital, with at least £12,500 paid up.
Does a PLC have to be listed on a stock exchange?
No. A PLC may remain unlisted while retaining public company status.
Can one person own a PLC?
Although technically possible, PLC governance structures typically involve broader ownership.
Are PLCs subject to audits?
Yes. PLCs generally require statutory audits.
How long does it take to form a PLC?
Incorporation can be relatively fast, but governance and structuring preparation often take longer.
Get Started with Your Public Limited Company
Forming a public limited company is a strategic decision with far-reaching financial, regulatory, and governance implications.With the right planning and professional support, a PLC can provide powerful growth opportunities while maintaining compliance and control.
👉 Contact Persona Finance for tailored guidance on PLC formation, structuring, and ongoing compliance.
