Are you thinking of setting up a public limited company in the UK? If yes, then you are probably aiming to grow your business, attract outside investors, or even list on the London Stock Exchange in the future. So, you must know that many PLCs remain privately held and are not listed on a stock exchange.
Unlike a private limited company (Ltd), a Public Limited Company (PLC) has stricter legal, financial, and reporting requirements. Also, it must meet minimum share capital rules, appoint multiple directors, comply with Companies House regulations, and satisfy additional transparency requirements introduced under the Economic Crime and Corporate Transparency Act 2023 (ECCTA).
If this seems difficult to you, don’t worry. This guide explains everything you need to know about setting up a public limited company in the UK for the 2026/27 tax year.
Stop worrying about deadlines and penalties. Our expert accountants file accurately and on time — every time.
What Is a Public Limited Company (PLC)?
Obviously, you should first know what a PLC is, right? Well, a Public Limited Company (PLC) is a company registered under the Companies Act 2006 that can offer its shares to the general public. And, many large UK businesses choose this structure because it allows them to raise significant investment through public shareholders.
Unlike an Ltd company in the UK, a PLC:
- Can offer shares to the public
- May be listed on a recognised stock exchange
- Must meet minimum share capital requirements
- Has stricter governance and reporting obligations
- Must comply with additional Companies House regulations
Moreover, if you are looking for businesses planning long-term expansion, setting up a public limited company can provide greater access to investment. If you are still unsure about this business structure, then you must go through the steps as mentioned below.
Who Should Consider Setting Up a Public Limited Company?
A PLC is not only suitable if your business plans to raise capital from public investors but also if you want to prepare for a future stock market listing. Whether you are looking to expand nationally or internationally, or may be want to increase business credibility with lenders and investors, you should consider a PLC.
Furthermore, it is known to attract institutional investment as well. Thus, most small businesses and startups begin as private limited companies before converting to a PLC once they have grown.
Step 1: Choose a Company Name
The first stage in setting up a public limited company is of course selecting a company name that complies with the Companies Act 2006. Another important point is that your company name must end with either Public Limited Company, PLC or P.L.C. If registering a Welsh company, the Welsh equivalents may also be used.
Before applying, you must check that your proposed name:
- Is unique
- Does not infringe trademarks
- Is not offensive or restricted
- Meets Companies House naming rules
Step 2: Meet the Minimum Share Capital Requirement
One of the biggest differences between a PLC and a private company is the minimum share capital requirement.
How much share capital is needed to set up a PLC?
While setting up a public limited company, you must be wondering about the share capital. So, you should know that a PLC must have allotted share capital with a nominal value of at least £50,000 before it can obtain a trading certificate. However, you do not need to pay the full £50,000 immediately.
The law requires shareholders to pay:
- At least 25% of the nominal value of each share
- Any share premium in full
Example
Suppose your PLC issues 50,000 ordinary shares and £1 nominal value per share. Then, the total allotted capital will be £50,000 with minimum amount payable before trading as £12,500. Yes, you can call your remaining balance for your company later, if required.
Step 3: Appoint Directors and a Company Secretary
As many business owners may already know that a PLC has stricter management requirements than a private limited company. Therefore, when setting up a public limited company, you must appoint:
- At least two directors
- A qualified company secretary with the necessary knowledge and experience required under the Companies Act.
Unlike private companies, a PLC cannot operate without a company secretary. The secretary should possess appropriate qualifications or relevant professional experience.
Suitable qualifications commonly include membership of recognised professional bodies such as ICAEW, ACCA and CIMA. Alternatively, solicitors, barristers, or experienced PLC company secretaries may also qualify.
Can one person start a PLC?
A simple answer would be “No”. Because a PLC must have at least two directors, together with a qualified company secretary. And, yes this is mandatory.
Step 4: Register Your PLC with Companies House
Once your company structure has been prepared, you must register your business with Companies House. The incorporation process includes providing the following:
- Company name
- Registered office address
- Director details
- Shareholder information
- Statement of capital
- Articles of Association (most PLCs adopt bespoke Articles rather than the default model articles.)
- Persons with Significant Control (PSC) details
After Companies House approves your application, you receive a Certificate of Incorporation.
Step 5: Comply with ECCTA 2023 Requirements
The Economic Crime and Corporate Transparency Act 2023 introduced major reforms that affect businesses setting up a public limited company. For the 2026/27 tax year, Companies House places greater emphasis on transparency and identity verification.
As a business owner wanting to set up a PLC, you should follow the key requirements such as:
-
Identity Verification
Directors and Persons with Significant Control (PSCs) are required to comply with Companies House identity verification requirements as they come into force under ECCTA.
-
Appropriate Registered Office
Every PLC must maintain an appropriate registered office address where official correspondence can be received. PO Box-only addresses are no longer acceptable.
-
Lawful Purpose Statement
Applicants must confirm that the company is being incorporated for lawful business purposes. These measures are designed to improve corporate transparency and reduce economic crime.
Step 6: Obtain a Trading Certificate
Many new business owners don’t realise that incorporation alone does not allow a PLC to begin trading. They also wonder “can a PLC trade immediately after incorporation” and the answer is NO. Before trading or borrowing money, a public limited company must obtain a Trading Certificate from Companies House.
This certificate confirms that the company has met the statutory minimum share capital requirement and is mostly the last step of setting up a public limited company in the UK. Without it, the company cannot legally commence business activities.
Is There Corporation Tax for a PLC in the UK
You must be thinking that the steps are finished so the work is done. But here is one more thing. It is equally important. Yes, once your PLC begins trading, it must register for Corporation Tax with HMRC.
For the 2026/27 tax year, Corporation Tax generally applies using the existing UK rates:
- Companies with profits up to the lower profits limit may qualify for the Small Profits Rate of 19%, subject to associated company rules.
- 25% Main Rate
- Marginal Relief for companies with profits between the thresholds
This means, your exact Corporation Tax depends on your company’s taxable profits and associated company rules. Professional tax planning can help ensure your company remains compliant while claiming all available reliefs, so you should look out for some experienced accountants in the UK.
What Are the Advantages of Setting Up a Public Limited Company
There are several reasons businesses choose a PLC structure. You might have some personal reasons to set up a PLC, but in general, there are some common benefits including:
- Ability to raise significant capital
- Greater business credibility
- Easier access to institutional investors
- Potential stock exchange listing
- Limited liability protection for shareholders
- Improved opportunities for long-term expansion
What Are the Disadvantages of a PLC
Like everything in this world, there are some pros along with some cons. Although a PLC offers many benefits, it also involves greater responsibility.
Potential drawbacks may include:
- Higher setup costs
- Minimum £50,000 share capital
- More complex reporting requirements
- Greater regulatory scrutiny
- Mandatory company secretary
- Public disclosure of company information
- Ongoing Companies House and HMRC compliance
Is A PLC Better Than A Private Limited Company?
It depends on your business goals. A PLC is generally more suitable for larger businesses seeking external investment. While an Ltd company is often a better option for small and medium-sized businesses. So, who can decide? This seems confusing, right? Don’t worry, seek professional accountant’s help and you can take benefit from all its pros while preventing al the potential cons of a PLC in the UK.
Final Thoughts
Setting up a public limited company can create exciting opportunities for businesses looking to raise investment and expand. But it also brings significantly greater legal, financial, and reporting responsibilities than operating as a private limited company.
Before incorporating, you should make sure to understand the share capital requirements, governance rules, Companies House obligations, Corporation Tax responsibilities, and the latest ECCTA 2023 compliance requirements. More importantly, seeking professional advice early can help you avoid costly mistakes and ensure your PLC is established correctly from the outset.
From bookkeeping to VAT returns, we manage it all so you can focus on growing your business.
Need Help Setting Up a Public Limited Company?
Starting a PLC involves much more than completing incorporation documents. From choosing the right company structure and preparing statutory paperwork to registering with Companies House and HMRC, you should complete every step correctly.
At CheapAccountantsInLondon, our experienced accountants help businesses across the UK with company formation, Corporation Tax registration, payroll, bookkeeping, annual accounts, and ongoing compliance. Whether you’re launching your first PLC or converting an existing Ltd company, our team can guide you through the entire process and ensure your business remains fully compliant from day one.
Contact us today to discuss your plans and receive expert support for setting up a public limited company.
Disclaimer: All the information provided in this article on setting up a public limited company, including all the text and graphics, is general. It does not intend to disregard any of the professional advice.