A Public Limited Company (PLC) is one of the most recognisable business structures in the UK. These companies are allowed to offer shares to the public and can choose to list on a stock exchange. Because of this, PLCs are often associated with large businesses, strong governance, and wider investment opportunities.

However, becoming a PLC is a major step and not suitable for every business. This blog explains the key advantages and disadvantages to help you understand whether this structure aligns with your long-term goals.

What Is a Public Limited Company?

A Public Limited Company is a business that has met specific legal requirements, including having at least £50,000 in share capital, a minimum of two directors, and a qualified company secretary. PLCs must also follow stricter reporting, auditing, and transparency obligations than private companies.

Because of these rules, PLCs are often seen as more credible and stable but they also face greater scrutiny.

Advantages of a Public Limited Company

1. Easier Access to Large Capital

A PLC can offer shares to the public and institutional investors. This makes it far easier to raise substantial funds for expansion, acquisitions, or major projects.

2. Strong Business Credibility and Public Trust

The “PLC” title signals financial stability, strict governance, and transparency. Banks, suppliers, lenders, and investors generally view PLCs as more reliable.

3. Limited Liability

Shareholders only risk the amount they invest.
Their personal assets remain protected a key attraction for investors.

4. Free Transferability of Shares

Shares can be easily bought and sold, improving liquidity and attracting more investors.

5. Better Access to Loans and Finance

Because PLCs must publish audited accounts, lenders have more confidence in the company’s performance and governance.

6. Ability to Offer Share-Based Incentives

PLCs can offer share options or share schemes to employees, helping attract and retain skilled talent.

Disadvantages of a Public Limited Company

1. High Setup and Ongoing Costs

A PLC must maintain:

• £50,000 minimum share capital (with £12,500 paid up)
• A qualified company secretary
• Annual audits
• Higher legal and administrative costs

The financial burden is significantly higher than a private company.

2. Heavy Regulatory and Reporting Burden

PLCs must comply with:

• Companies Act 2006
• Strict audit and financial reporting rules
• Public disclosure of major decisions
• Shorter deadlines for filing accounts
• (If listed) FCA and stock exchange rules

This reduces privacy and increases administrative workload.

3. Loss of Control

When shares are open to the public, ownership becomes widely spread.
Shareholders can influence key decisions, and management must act in their interests. There is also a genuine risk of hostile takeovers if an external party buys enough shares.

4. Extensive Public Disclosure Requirements

PLCs must publish:

• Annual accounts
• Annual reports
• Financial statements
• Directors’ remuneration
• Significant company decisions

This exposes strategic and financial information to competitors.

5. Increased Pressure and Scrutiny

PLCs face scrutiny from:

• Investors
• Analysts
• Media
• Regulatory bodies

This can push management to focus on short-term performance rather than long-term strategy.

Is a PLC the Right Choice for Your Business?

A Public Limited Company offers unmatched opportunities for raising capital and growing your brand’s visibility. However, it also brings strict compliance obligations, higher running costs, and reduced privacy.

Choosing this structure should depend on:

• The scale of your growth plans
• Your willingness to embrace transparency
• Your ability to meet ongoing regulatory requirements
• How much control you are prepared to share

For fast-growing businesses aiming to expand significantly, a PLC can be a powerful structure. For smaller or more private ventures, other company types may be more suitable.

Frequently Asked Questions (FAQs)

1. What is the minimum share capital required for a PLC in the UK?

A Public Limited Company must have £50,000 in allotted share capital, and at least 25% (£12,500) must be paid before the company starts trading.

2. How many directors does a PLC need?

A PLC must have at least two directors. There is no upper limit.

3. Do PLCs need to be audited every year?

Yes. All PLCs, regardless of size, must undergo an annual audit. There is no exemption.

4. What are the biggest risks of becoming a PLC?

The main risks include:

• Loss of control due to shareholder influence
• Risk of hostile takeovers
• High running costs
• Heavy reporting and regulatory obligations
• Public scrutiny of financial performance and decisions

5. Is a PLC suitable for small businesses?

Generally no. A PLC is more suitable for businesses planning rapid growth, large fundraising, or public investment. Small or early-stage businesses usually find private limited companies (Ltd) more cost-effective and flexible.

6. What is an example of a PLC in the UK?

A well-known example of a Public Limited Company (PLC) in the UK is Tesco plc. Other examples include:

• Barclays plc
• Vodafone Group plc
• Unilever plc
• BP plc

These companies are publicly traded, follow strict reporting rules, and have “plc” at the end of their name.

7. What is a UK PLC company?

A UK PLC (Public Limited Company) is a business structure that:

• Has at least £50,000 in share capital
• Can offer its shares to the public
• Must have a minimum of two directors
• Must appoint a qualified company secretary
• Must publish financial information publicly
• Is subject to stricter audit, compliance, and reporting rules

A PLC may be listed on the stock exchange, but listing is optional, not mandatory.

8. What is the difference between PLC and Ltd in the UK?

Here is the difference in simple terms:

PLC (Public Limited Company)

• Can sell shares to the public
• Higher compliance and reporting requirements
• Must have £50,000 minimum share capital

Ltd (Private Limited Company)

• Cannot sell shares to the public
• Lower reporting and administrative burden
• No minimum share capital requirement

Summary: A PLC is designed for large-scale public investment and transparency.
An Ltd is designed for privacy, simplicity, and owner control.

Conclusion

A Public Limited Company comes with unmatched benefits particularly access to significant investment and strong business credibility. However, these advantages require accepting higher costs, strict compliance obligations, and reduced privacy.

A PLC is most suitable for businesses seeking rapid growth, large-scale investment, and strong public presence. For smaller firms or those wanting full control and lower admin, a private limited company may be more appropriate.

If you need tax advice on choosing the right structure for your business, Pro Taxman can help you understand the legal, financial, and strategic implications clearly and confidently.