Well-Known Public Limited Company Examples in the UK

If you are looking into ways to structure your UK business, you’ve likely come across the term “PLC”. Reviewing some notable public limited company examples will give you insight into why some of the largest and most famous businesses in the UK have adopted this model. In this article, we will provide some of the most well-known public limited company examples and discuss the essential characteristics of public limited companies. We will also describe and compare public limited companies and private limited companies.

This article will also be useful if you want to learn about public limited companies but find traditional articles difficult to understand due to overly complicated and long sentences and the use of confusing legal jargon. We will provide a straightforward description of public limited companies in easy-to-understand language.

What Is a Public Limited Company? (Quick Recap)

It’s useful to have a general understanding of public limited companies (PLCs) before reviewing PLC examples. A PLC is a company under the Companies Act 2006 that can raise capital by publicly offering its shares and has the authority to list its shares on the stock exchange.

To incorporate as a PLC in the UK, a company is required to:

1. Raise a minimum share capital of £50,000 and have at least 25% of the share capital, that is, £12,500, fully paid before starting business
2. Appoint at least two company directors
3. Appoint a company secretary
4. Add “PLC” or “Public Limited Company” to the company name
5. Obtain a trading or business license from Companies House
6. This is in addition to other requirements for starting any business in the UK.

Public Ltd companies are distinct from private limited companies (Ltd). The requirements for a limited company (Ltd.) are less stringent, and such companies are prohibited from offering their shares to the public.

Examples of Public Limited Companies in the UK

Some well-known brands in the UK are organized as PLCs. Listed below are some well-known brands in each of the main sectors of the UK economy to illustrate how pervasive this structure is in the UK economy.

Banking, Financial Services and Other Industries

1. HSBC Holdings plc is a bank and financial services company headquartered in the United Kingdom and operates internationally.
2. Barclays plc is a bank in the United Kingdom.
3. Lloyds Banking Group plc operates many retail and commercial banks in the United Kingdom.

Other Retail Companies

1. Tesco plc is a chain of supermarkets in the United Kingdom and other countries.
2. Marks and Spencer Group plc is a clothing and other merchandise retailer in the United Kingdom and internationally.
3. Next plc is a clothing and other merchandise retailer in the United Kingdom.
4. Greggs plc is a bakery and other fast food retailer in the United Kingdom.

Energy

1. BP plc produces and distributes oil and gas throughout the world. It is headquartered in London.
2. Shell plc is headquartered in the Netherlands and engages in the worldwide refining and marketing of petroleum products and related chemicals.

Pharmaceuticals

1. AstraZeneca plc, based in Cambridge, England, researches, develops, manufactures and distributes pharmaceutical products worldwide.
2. GSK plc is an international research-based pharmaceutical and consumer healthcare company. It is headquartered in the United Kingdom.

Telecommunications

1. Vodafone Group plc provides telecommunications services worldwide.
2. BT Group plc is headquartered in the United Kingdom and provides fixed-line telecommunications services throughout the country.

Consumer goods

1. Unilever plc produces consumer goods.
2. British American Tobacco plc produces cigarettes and other tobacco products.

Aerospace and engineering

1. Rolls-Royce Holdings plc is a United Kingdom-based aerospace engineering company.

Advertising and media

1. WPP plc is an advertising and media company.

Some other companies in various countries, such as consumer goods companies Unilever plc and British American Tobacco plc; aerospace and other engineering company Rolls-Royce Holdings plc; and international advertising company WPP plc, are also on the FTSE 100.

Why Companies Choose the PLC Structure

These businesses tend to be large and/or capital intensive and/or experiencing high growth. As Public Limited

Companies (PLCs), they enjoy the following benefits over private limited companies:

1. Access to larger equity and debt finance as they can issue shares to the general public and enjoy banking and trade credit facilities
2. Limited liability
3. Ability to raise larger capital quickly to finance their growth and expansion, including cross-border expansion (refer to our guide on how UK SaaS companies can penetrate the Indian market)
4. A positive public and regulatory perception, including improved hiring, business, and partnering opportunities

However, they also have additional obligations to the public, including more onerous and frequent reports and disclosures.

Public Limited Company vs Private Limited Company

Consider the differences between the two business structures before concluding the best business structure for your business:

1. Public limited companies (PLCs) have the ability to offer shares to the public, whereas private limited companies (Ltd) cannot.
2. A PLC has to have a share capital of at least £50,000, whereas a Ltd company has no minimum share capital.
3. A PLC must have a minimum of two directors and a company secretary, whereas a Ltd company only needs one director.
4. PLCs are subject to more stringent requirements on reporting and company secretarial practices than most other companies.

Most companies start out as a Ltd company and, if and when the company wishes to raise capital via the offering of shares on a stock exchange, the company will go through the processes involved in becoming a PLC. The other common options for business structures are described in our other article on the differences between limited companies and partnerships.

How to Become a Public Limited Company in the UK

To establish a public limited company, you need to:

1. Reach the minimum share capital of £50,000, with 25% of the shares fully paid up
2. Appoint at least two directors and a company secretary
3. Register your company with Companies House, using the company name ending with “plc”
4. Receive your trading certificate
5. Public limited companies also have additional financial and governance obligations.

It is a lengthy, costly and regulated process to become a public limited company. Most companies seek legal and financial advice to prepare for the process.

Frequently Asked Questions

Is Greggs really a public limited company?

Yes, Greggs is a public limited company and is listed on the London Stock Exchange.

Can a small UK startup become a PLC?

Yes, a small UK company can also follow the same process and become a public limited company if it is able to fulfil the minimum requirement of £50,000 share capital.

What does "plc" actually stand for?

Public Limited Company (PLC) is a legal structure of a company which allows the company to raise funds by offering shares to the public.

How many public limited companies are there in the UK?

There are very few public limited companies compared to private limited companies. Companies House has records of more than 5 million companies, and fewer than 6000 companies are public limited companies.

Do all public limited companies trade on a stock exchange?

No, not all companies need to be listed. A company may become a public limited company and may not list its shares.

Final Thoughts

This sample of public limited companies shows the varied nature of UK businesses structured as PLCs. PLCs are favored in large, established businesses, as they raise capital on stock markets. Banks and building societies are good examples. The Greggs plc (traditionally a PLC) structure is similar to small, independent businesses.

Initially, the route to market for the majority of independent business founders will be the private limited company. The consideration of a float will arise at the later stages of the growth of the business.

As your business grows and you look to raise further capital and float the business, VenturEasy is on hand to help. If the legal and accounting side of starting up a UK business is uncharted territory, our accounting for startup businesses in the UK may be of assistance.

To know more about other business structures and whether a PLC is appropriate for your business, book a free 15-minute consultation.