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Public Limited Company (PLC) in United Kingdom

PLC · Formation from $134

Last verified: June 13, 2026

Corporate Tax

25.0%

State Tax

0.0%

Formation Cost

$134

Annual Fee

$67

Comparison Scores

Privacy, remote setup, banking, and tax efficiency

Privacy2/10
Remote Setup6/10
Banking8/10
Tax Efficiency7/10
Overall Score6/10

Calculate full formation cost

Break down one-time filing fees and recurring costs for any supported entity type.

Who Should Choose This?

Profiles that typically benefit from this entity

  • Large-scale enterprises planning to raise significant capital from public markets or institutional investors.
  • Companies preparing for an Initial Public Offering (IPO) on a stock exchange.
  • Businesses seeking the highest level of corporate prestige and credibility to win major contracts.
  • Mature companies looking to use their publicly tradable shares for mergers and acquisitions.

Who Should Avoid This?

Scenarios where another structure may be better

  • Small businesses, startups, and solopreneurs who do not need public investment.
  • Founders who want to maintain strict privacy and avoid extensive public financial disclosures.
  • Businesses without the capital to meet the £50,000 minimum share requirement or the budget for high compliance costs.

Advantages

  • +Ability to raise capital from the public (retail and institutional investors) by offering shares.
  • +Enhanced credibility and prestige with suppliers, customers, and lenders due to strict regulatory compliance.
  • +Limited liability protection for shareholders, restricted to the amount unpaid on their shares.
  • +Easier to use shares as currency for acquisitions or to attract top talent via share option schemes.
  • +Clear separation of ownership and management, with robust corporate governance frameworks.

Disadvantages

  • -High minimum share capital requirement (£50,000, with at least £12,500 paid up before trading).
  • -Strict regulatory and compliance burden, including mandatory audits and detailed financial reporting.
  • -Requirement to appoint at least two directors and a professionally qualified company secretary.
  • -Greater public scrutiny and loss of privacy, as detailed accounts and director information are publicly available.
  • -Higher setup and ongoing administrative costs compared to a private limited company (Ltd).

Formation Steps

1

Choose a unique company name ending in 'PLC' or 'Public Limited Company' and verify availability.

2

Appoint at least two directors and one professionally qualified company secretary.

3

Complete mandatory identity verification for all directors and Persons with Significant Control (PSCs) via GOV.UK One Login or an Authorised Corporate Service Provider.

4

Prepare the Memorandum and Articles of Association tailored for a public company.

5

Allot the minimum share capital of £50,000, ensuring at least 25% (£12,500) is paid up.

6

Submit the incorporation application to Companies House and pay the £100 digital filing fee.

7

Apply for a Trading Certificate (Section 761) from Companies House to legally commence business and exercise borrowing powers.

8

Register for Corporation Tax with HMRC within 3 months of starting to do business, and register for VAT/PAYE if applicable.

Cost Breakdown

Detailed breakdown of formation and ongoing costs

ItemTypeAmount
State filing fee (Companies House)One-time$130
Professional Formation & Legal DraftingOne-time$800
Registered Office AddressAnnual$150
Qualified Company Secretary ServiceAnnual$1,500
Annual Confirmation StatementAnnual$65
First year total$2,645
Annual ongoing$1,715

Real-World Examples

Typical use cases for this entity type

  • Unilever PLC: A multinational consumer goods company that uses the PLC structure to manage global operations and access international capital markets.
  • AstraZeneca PLC: A global pharmaceutical company relying on the PLC structure to fund extensive research and development through public investment.
  • Virgin Money UK PLC: A financial services brand that transitioned to a PLC to meet regulatory capital requirements and offer shares to the public.

Common Mistakes

Pitfalls to avoid during setup and operations

  • Starting trading or borrowing before obtaining the mandatory Section 761 Trading Certificate from Companies House.
  • Failing to ensure the company secretary holds the required professional qualifications (e.g., ICAEW, ACCA, ICSA).
  • Underestimating the ongoing costs of compliance, mandatory audits, and corporate governance.
  • Missing the new 2025/2026 mandatory identity verification deadlines for directors and PSCs, leading to rejected filings.
  • Assuming that incorporating as a PLC automatically lists the company on a stock exchange (listing is a separate, complex process).

Other entity types

Other formation options in United Kingdom

Compare with Other Countries

Country / TypeTaxFormationAnnual
🇬🇧 Public Limited Company (PLC)(PLC)25.0%$134$67

FAQ

What is the minimum share capital for a UK PLC?

A UK 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.

Do I need a company secretary for a PLC?

Yes, unlike a private limited company, a PLC is legally required to appoint a suitably qualified company secretary (e.g., a member of ICAEW, ACCA, or ICSA).

How many directors are required for a UK PLC?

A PLC must have a minimum of two directors.

Does a PLC have to be listed on a stock exchange?

No, a PLC can be unlisted. Listing shares on an exchange like the London Stock Exchange (LSE) is an optional step.

What are the new Companies House fees for 2026?

As of February 1, 2026, the digital incorporation fee is £100, and the annual confirmation statement fee is £50.

Are audits mandatory for a PLC?

Yes, public limited companies are generally required to have their annual accounts audited by a statutory auditor.

Can a foreign resident be a director of a UK PLC?

Yes, directors do not need to be UK residents, but the company must maintain a registered office address in the UK and directors must complete mandatory identity verification.

What is a Trading Certificate?

It is a certificate issued by Companies House under Section 761 of the Companies Act 2006, confirming the PLC has met the minimum share capital requirement and is legally allowed to do business.

Detailed Tax Rates

Corporate Income Tax

FromToRate
$0$50,00019.0%
$50,001$250,00025.0%
$250,001No limit25.0%

The standard UK corporate tax rate is 25%. Companies with profits under £50,000 benefit from a 19% Small Profits Rate, while marginal relief applies to profits between £50,000 and £250,000.

Personal Income Tax (Top rate: 45.0%)

FromToRate
$0$12,5700.0%
$12,571$50,27020.0%
$50,271$125,14040.0%
$125,141No limit45.0%

The Personal Allowance of £12,570 is reduced by £1 for every £2 earned over £100,000, creating an effective 60% marginal tax rate between £100,000 and £125,140. Scotland applies different income tax bands.

Capital Gains Tax

24.0%

The higher rate for Capital Gains Tax is 24% for both residential property and other assets. Basic rate taxpayers pay 18%, and the annual tax-free allowance is £3,000.

VAT / GST

20.0%

Registration Threshold: GBP90,000

Non-UK businesses providing digital services to UK consumers must register for and charge UK VAT, with no registration threshold.

Withholding Tax

Dividends0.0%
Royalties20.0%
Interest20.0%

The UK generally does not levy withholding tax on dividends. A 20% rate applies to interest and royalties, but this can often be reduced or eliminated under the UK's extensive network of double taxation treaties.

Payroll & Social Security

Employer15.0%
Employee8.0%

From April 2025, Employer National Insurance increased to 15% on earnings above £5,000 per year. Employees pay 8% on earnings between £12,571 and £50,270, and 2% above that.

Other Taxes

Stamp Duty Reserve Tax (SDRT)

A 0.5% tax is generally payable on the purchase of shares in a UK Public Limited Company (PLC).

Business Rates

A tax charged on most non-domestic properties, such as offices, shops, and warehouses, based on the property's rateable value.

Incentives & Support

R&D Tax Relief (Merged Scheme)

A merged R&D expenditure credit scheme offering a 20% taxable credit on qualifying research and development costs.

20% expenditure credit on qualifying R&D costs.

Eligibility: UK companies undertaking qualifying R&D activities to resolve scientific or technological uncertainties.

Full Expensing (Capital Allowances)

A 100% first-year capital allowance for qualifying plant and machinery investments.

100% immediate tax deduction on qualifying capital expenditure.

Eligibility: Companies subject to UK Corporation Tax investing in new, unused main-rate plant and machinery.

Formation Requirements

Minimum Capital

GBP 50,000

A minimum allotted share capital of £50,000 is required, of which at least 25% (£12,500) must be paid up before the company can obtain a Trading Certificate and commence business.

Local Director

Not Required

Directors can be non-residents, but the company must maintain a registered office address in the UK, and all directors must complete mandatory identity verification.

Registered Office

Required

Virtual office allowed. $50 - $300 per year

Notarization Required

No

Power of Attorney (Remote)

Not Required

UK company formation can be completed 100% remotely online without a Power of Attorney.

Timeline

Standard: 3-5 business days days

Expedited: 1 business day (Same-day available) days ($100)

Required Documents

  • 1Proof of identity (Passport or National ID) for directors and PSCs
  • 2Proof of residential address (Utility bill or bank statement less than 3 months old)
  • 3Memorandum and Articles of Association tailored for a PLC
  • 4Details of Persons with Significant Control (PSC register)
  • 5Consent to act as a director and company secretary

Compliance & Reporting

Annual Filings

Annual Accounts

Penalty: Automatic penalties apply: £750 for up to 1 month late, scaling up to £7,500 for over 6 months late. Penalties double for consecutive late filings.

6 months after the accounting reference date

Confirmation Statement (CS01)

Penalty: Failure to file is a criminal offence and can lead to the company being struck off the register and directors being prosecuted.

Within 14 days of the review period end

Corporation Tax Return (CT600)

Penalty: £100 for 1 day late, another £100 after 3 months, plus 10% of unpaid tax after 6 months.

12 months after the end of the accounting period

Audit Requirement

Required

Public Limited Companies (PLCs) are generally not exempt from statutory audits regardless of their size, unless they are completely dormant.

Accounting Standard

UK GAAP (FRS 102) or IFRS

Tax Return Deadline

12 months after the end of the accounting period (Note: Corporation Tax payment is due earlier, at 9 months and 1 day after the accounting period ends).

VAT Filing Frequency

Quarterly

Data Protection

Must comply with the UK GDPR and the Data (Use and Access) Act 2025 (DUAA). Requires registration with the Information Commissioner's Office (ICO) and payment of an annual data protection fee.

Banking & Payments

Payment Gateways

Stripe, PayPal, Square, Paddle, GoCardless

Currency

GBP

Multi-Currency: Supported

Account Opening

Opening a traditional high-street bank account (e.g., Barclays, HSBC) is notoriously difficult for non-resident founders and typically requires a UK resident director and an in-person visit. However, digital banking platforms like Wise and Revolut Business offer a much smoother, remote-friendly onboarding process. Strict KYC and AML regulations still apply, requiring comprehensive identity verification and proof of business activities.

Practical Information

Timezone

UTC+0 to UTC+1

Business Language

English

Legal System

Common law

Ease of Doing Business

#8

IP Protection

The UK Intellectual Property Office (UKIPO) provides a highly robust, globally respected framework for protecting patents, trademarks, and copyrights, fully aligned with WIPO standards.

Double Tax Treaties

130 countries

Notable treaties: United States, Germany, France, Australia, Japan, Canada

Visa & Residency Options

Innovator Founder Visa

Designed for entrepreneurs seeking to establish a business in the UK based on an innovative, viable, and scalable business idea endorsed by an approved body.

Global Talent Visa

A flexible visa for highly skilled individuals who are recognized as leaders or potential leaders in fields like digital technology, arts, and research.

Guides by Business Type

Changelog

Data updates and changes on this page

Updated Companies House incorporation and confirmation statement fees for 2026, and added ECCT Act mandatory identity verification requirements.

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