How To Form A Public Company Limited By Shares

A public company limited by shares is a type of company whose shares can be traded in a public stock exchange. The name of the company is always suffixed by PLC (Public Limited Company). In order to constitute a limited company, it must be registered with the Companies House.

There are a few lower limit demands that must be taken attention of when incorporating a public company limited by shares. The lower limit share working capital demand to constitute a public limited company is £50,000 and out of this 25% must have got been paid for. Secondly, in order to begin a public limited company, it is necessary to have got a lower limit of two stockholders and two directors. One of the managers can also presume the function of a company secretary. Finally, a certification of entitlement is a necessity in order to borrow working capital and make business. The fulfilment of all these demands is absolutely necessary in order to integrate and registry the company.

While choosing the company managers for a public company limited by shares, some things have got to be kept in mind. The individual must not be bankrupt or disqualified under law from holding a directorship. He must not be 70 old age of age during assignment or while in office, until a particular declaration is passed regarding the same. However, there is no lower limit age for assignment of the manager in under United Kingdom law. But assignment must be carried out lone after the consent of the person.

The secretary and the joint secretary of a public company limited by shares must also be chosen with great attention and after considering a figure of factors. He must be a capable and enlightened individual who is aware of his duties in the company. He must be quite experienced in his field of work. Even barristers, lawyers or canvassers who have got been practicing in United Kingdom are eligible for the post.

Forming a public company limited by shares is quite easy. It just necessitates the entry of a few written documents with the Companies House. This procedure can be undertaken either manually, electronically or through a company formation agent.