Forming a Public Limited Company brings with it many advantages such as easier access to capital, liquidity, as well as profit and tax advantages, but it is important to understand that with the incorporation of a PLC comes more stringent administration and filing requirements. For example; a public company must have at least two directors and a suitably qualified company secretary.
In addition, a public company cannot conduct business or exercise borrowing powers unless it has obtained a trading certificate. Trading without this certificate is an offense and the directors are liable, upon conviction, to a fine.
Regarding share capital, a public company must have an issued share capital of at least £50,000 (or the Euro equivalent) with each share paid up to at least 25% of its nominal value together with any premium due.
As part of its statutory compliance, a public company must hold an annual general meeting within six months after its financial year end (CA2006 s336) and must deliver its accounts within six months from its year end. Failure to to do this will result in a late filing penalty being imposed of up to £7,500.
If you are unsure as to whether a PLC is right for your business needs, feel free to give us a call and we can discuss your individual requirements. If you're ready to form a PLC now, our secure online company formation services do provide facilities to incorporate a PLC electronically should you wish to do so.