Public Limited Company Definition Uk

Public limited company plc.

Public limited company definition uk. To set up as a plc you need to have at least two shareholders and at least 50 000 worth of shares must be issued although there s no obligation for you to offer any further shares to the public. A public company in the uk has to have the words public limited company plc or plc at the end of its legal name. Public limited company definition. A company in the uk whose shares parts that can be bought and sold can be sold to the public.

The main characteristic and advantage of a public limited company is that you can raise capital through external investors in essence offering shares in your company to the public. However many public companies do not offer their shares in this way and are effectively privately owned sometimes by another plc. A public limited company plc is simply a limited liability company similar to a private limited company that has chosen to raise capital by offering shares to the general public. Public limited company definition the name public limited company is more commonly associated with the british origins of the entity and is commonly used as plc in the united kingdom and some commonwealth countries.

A public limited company is the only type of business in the uk which can if it chooses offer its shares to the public to raise funds for commercial use. It has limited liability and its shares can be bought or sold by anyone either via an initial public offering ipo when it is first established privately by gift sale or through a brokerage or on a stock. Before this limited companies used the term limited ltd at the end of their name. A public limited company plc is the legal designation of a limited liability company which has offered shares to the general public and has limited liability.