Understand the key differences between Public Limited Companies (PLCs) and Private Limited Companies (LTDs) in the UK. Form your LTD company with CG Incorporations today.
What is a Private Limited Company (LTD)?
A Private Limited Company is a legal entity with limited liability. It is privately owned and registered with Companies House under the Companies Act 2006.
- Minimum of one director (natural person)
- No minimum share capital (typically £1)
- Shares cannot be offered to the public
- Registered UK office address required
- Annual accounts and confirmation statements must be filed with Companies House
What is a Public Limited Company (PLC)?
A Public Limited Company can offer shares to the public and may be listed on a stock exchange. It must comply with more stringent legal requirements.
- Minimum share capital of £50,000 (25% must be paid up)
- Minimum of two directors and one qualified company secretary
- Annual accounts must be audited
- Must file with Companies House and possibly the Financial Conduct Authority
Note: CG Incorporations does not form PLCs but can help you choose the right structure.
Key Differences Between PLC and LTD
| Feature | LTD (Private Limited Company) | PLC (Public Limited Company) |
|---|---|---|
| Minimum Share Capital | No minimum (often £1) | £50,000 (25% must be paid up) |
| Directors | Minimum 1 | Minimum 2 |
| Company Secretary | Optional | Required (must be qualified) |
| Public Share Offering | Not allowed | Allowed |
| Audit Requirements | Not required for small companies | Mandatory |
Form Your LTD Company with CG Incorporations
We offer fast, compliant UK company formation services for domestic and international clients. Our package includes:
- Company name registration with Companies House
- Articles of Association and Memorandum preparation
- Digital incorporation certificate
- Registered office address (optional)
Frequently Asked Questions
Yes. A private company may convert into a PLC under the Companies Act 2006 by passing a special resolution and submitting the appropriate forms and documents to Companies House, including evidence of meeting the share capital and director requirements.
Yes. There are no residency or nationality restrictions on company directors or shareholders. Non-UK residents can legally form an LTD, provided they have a UK registered office and meet all compliance requirements.
No. VAT registration is only mandatory once your taxable turnover exceeds £90,000 (as of 2024). However, businesses below the threshold can choose to register voluntarily.
No. Private limited companies are not legally required to appoint a company secretary, although they may do so if desired.
Not usually. Small LTD companies that meet the audit exemption criteria (based on turnover, assets, and employee numbers) are not required to file audited accounts. PLCs, however, must file audited accounts regardless of size.
Published: 7/2/2025 11:12:57 AM. Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice.
For formal advice regarding UK company registration please…
