Ltd vs PLC: UK Company Types Explained

Ltd vs PLC

The two main types of limited company in the UK: private limited (Ltd) and public limited company (PLC), differing in share trading, capital requirements, and governance.

A Private Limited Company (Ltd) is the most common company type in the UK, accounting for over 95% of all registrations. Ltd companies cannot offer shares to the public and have no minimum share capital requirement. They must have at least one director and one shareholder.

A Public Limited Company (PLC) can offer shares to the public and be listed on a stock exchange. PLCs require a minimum share capital of £50,000 (of which at least 25% must be paid up), at least two directors, and a qualified company secretary. PLCs face stricter reporting and governance requirements.

Other company types include Limited Liability Partnerships (LLPs), which combine the flexibility of partnerships with limited liability, and Community Interest Companies (CICs), designed for social enterprises. There are also unlimited companies, guarantee companies, and Scottish Limited Partnerships.

BORSCH.AI covers all company types registered with Companies House, including 5.6 million Ltd companies, approximately 6,000 PLCs, and hundreds of thousands of LLPs and other entity types.

5,471,489
Private Ltd Companies
4,776
Public PLCs
0
LLPs

Frequently Asked Questions

What is the minimum capital for a PLC?

A PLC must have a minimum allotted share capital of £50,000, of which at least 25% (£12,500) must be paid up before the company can trade or borrow.

Can a Ltd company become a PLC?

Yes, a private limited company can re-register as a PLC by passing a special resolution and meeting the PLC requirements (minimum capital, two directors, company secretary, etc.).

Which is better for a small business, Ltd or PLC?

For most small businesses, a Ltd company is appropriate. It has lower setup costs, simpler governance, and fewer disclosure requirements. A PLC is only necessary if you plan to raise capital by offering shares to the public.

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Data sourced from 53 official UK government and regulatory bodies including Companies House, FCA, HMRC, and Land Registry. Updated daily.