Example of a Public Limited Company Business in the UK is one of the most searched topics by aspiring entrepreneurs, students, and investors across Britain — and for good reason.
From household names like Tesco to global giants like BP, public limited companies (PLCs) shape the UK economy in powerful ways. These businesses don’t just operate privately — they’re listed on the London Stock Exchange, invite public investment, and are held to high standards of transparency and governance.
So, what makes these companies “public”? What are their advantages? And more importantly, could your business follow a similar path?
In this guide, we’ll break down what a PLC is, show you real-life examples, and help you understand whether forming or investing in a public limited company could be your next big move.
How UK Public Companies Work
In the UK, PLCs are businesses that trade shares publicly,companies typically on exchanges. Formation demands: official registration, £50k share capital (with £12.5k paid), and meeting legal obligations. Public limited companies have the advantage of raising funds by offering shares to the general public, something private companies are not permitted to do.
This makes them ideal for raising large-scale funding and expanding operations nationally or globally.
Key Characteristics of a PLC:
- Must have at least two directors and a qualified company secretary
- Shares can be freely traded on a recognised exchange
- Requires a minimum of two shareholders
Must publish annual reports and undergo external audits
Voice Search Style Answer:
“A public limited company in the UK is a business that offers shares to the public.”
PLCs are often seen in sectors like retail, energy, pharmaceuticals, and finance, where large-scale investment is essential for growth.
Top Examples of Public Limited Companies in the UK
Public limited companies (PLCs) represent some of the most recognisable and influential businesses in the UK. Their ability to offer shares to the public, raise capital on stock markets, and operate under transparent governance frameworks allows them to scale rapidly and maintain a competitive edge. Below are four well-known examples that illustrate how the PLC model works in different industries.
Tesco PLC – A Retail Powerhouse
Tesco PLC stands as one of the largest and most successful supermarket chains in the UK, serving millions of customers each week through a network of stores and online platforms. As a public limited company, Tesco is listed on the London Stock Exchange (LSE) under the ticker symbol TSCO, giving it access to capital from both institutional and individual investors.
Tesco operates within the regulatory structure required of PLCs by publishing comprehensive financial statements each year and maintaining a diverse board of directors, which includes shareholder representation and voting rights. Its ability to secure public funding has enabled the company to expand not only across the UK but also into international markets and digital retail technologies. The financial leverage provided by its PLC status continues to support Tesco’s dominance in the retail and logistics space.
Rolls-Royce Holdings PLC – Engineering Innovation
Rolls-Royce Holdings PLC is a globally respected name in aerospace and defence engineering. The company is renowned for designing and manufacturing aircraft engines, marine propulsion systems, and advanced power technologies. Traded on the LSE under the symbol RR, Rolls-Royce exemplifies how a PLC can attract global investment through public share offerings.
The company’s financial performance is transparently reported and made publicly available, reinforcing investor confidence and regulatory compliance. Rolls-Royce operates under strict governance standards and uses the capital it raises to fuel intensive research and development projects. Its PLC status has enabled it to innovate at scale, contributing to advancements in civil aviation, defence, and clean energy technologies.
BP PLC – A Global Leader in Energy from the UK
Once known as British Petroleum, BP PLC stands today as one of the most prominent and diversified oil and gas companies operating on a global scale.
With its main offices in London, BP is listed on the London Stock Exchange under its recognizable BP symbol.L (and also on the New York Stock Exchange), BP’s PLC structure enables it to operate across continents with a high level of accountability and visibility.
By raising capital on global stock exchanges, BP can fund extensive oil exploration projects, renewable energy initiatives, and sustainability research. The organization maintains transparency through routine financial reporting while following rigorous ESG standards.Its transparent public reporting builds trust with investors and the public alike. As a PLC, BP is able to adapt its business model in response to changing energy needs while maintaining a strong presence in traditional and renewable energy sectors.
The Global Reach of Unilever PLC
From personal care to food staples, Unilever’s extensive brand family (including Persil and Lipton) benefits from its innovative dual-market presence on the LSE and Euronext Amsterdam.
As a public limited company, Unilever upholds a high standard of corporate transparency and governance. Its shareholder base is globally diversified, and the company regularly publishes ESG and sustainability reports outlining its environmental impact and ethical practices. The funds raised through public share offerings are used to invest in innovation, brand acquisitions, and sustainability-focused initiatives. Unilever’s continued growth and influence in global markets are directly linked to the advantages of its PLC structure.
Real Examples of UK PLCs
- Some of the most successful public limited companies in the UK include:
- Tesco PLC – A dominant force in retail and grocery
- Rolls-Royce Holdings PLC – A leader in aerospace and defence engineering
- BP PLC – One of the world’s top energy and petroleum corporations
- Unilever PLC – A global leader in consumer goods and sustainability
These examples demonstrate the unique ability of PLCs to scale, innovate, and attract investment while remaining accountable to the public and shareholders.
How Do PLCs Differ From Other Business Types?
The UK’s public limited company model comes with specific features that distinguish it from alternative business formats.
These features are defined by UK company law and enforced through regulatory frameworks, primarily via Companies House and the Financial Conduct Authority (FCA).
Voice Search-Friendly Answer:
“A public limited company in the UK stands apart due to its ability to have publicly owned shares, a mandatory minimum share capital, several appointed directors, and a high level of regulatory transparency through regular reporting.”
Let’s take a closer look at what makes a PLC unique.
Public Share Ownership
One of the standout features of a PLC is its ability to sell shares to the general public. These shares are typically listed on major stock exchanges like the London Stock Exchange, where they can be bought and sold by investors.
This means:
Anyone can invest in the company by buying its shares
Ownership is distributed among public and institutional shareholders
Shareholders have voting rights on key business matters, such as board appointments .
Share Capital Rules for Public Companies
UK law mandates that PLCs must have £50,000 in allotted shares, with no less than 25% of this amount actually paid before the company can start operations.
This rule helps guarantee that the company is financially stable enough to fulfil its commitments and uphold the trust of its investors.
Governance Structure of Public Companies
By law, every PLC needs two directors and a qualified secretary. Together, they steer business decisions and guarantee the organization meets its compliance responsibilities.
This formal governance structure ensures accountability and transparency, which are critical when a business is publicly owned.
Openness and Financial Accountability
Public limited companies are legally required to follow rigorous financial reporting standards, ensuring transparency in how they operate and manage their finances.
These include:
Filing annual accounts and reports with Companies House
Publishing financial statements for shareholders and the public
Undergoing external audits by registered auditors
This transparency builds trust with investors and helps protect the integrity of the financial markets.
Ability to Raise Capital
Because PLCs can sell shares to the public, they can raise substantial funding to support expansion, acquisitions, research, or product development. This is a significant advantage over private limited companies (LTDs), which are limited to private investment sources.
In many cases, PLCs issue Initial Public Offerings (IPOs) to attract large-scale investment and fuel growth.
Corporate Identity and Branding
Public limited companies must include “PLC” in their official company name. This immediately signals to investors, customers, and regulators that the company is publicly traded and operates under a specific legal framework.
Key Features of a PLC in the UK
- Public share ownership and stock exchange listing
- Minimum share capital of £50,000 (£12,500 paid-up)
- At least two directors and a qualified company secretary
- Annual public financial reporting and external audits
- Greater access to capital through public investment
- “PLC” legally included in the company name
These features make a PLC ideal for businesses looking to grow quickly, attract widespread investment, and operate with a high degree of public visibility.
PLC vs LTD: What’s the Difference?
PLCs and LTDs differ fundamentally in three key aspects: who can hold shares, how they secure funding, and what rules they must follow.
Voice Search-Friendly Answer:
“A PLC can sell shares to the public and is listed on the stock market, while an LTD is privately owned and cannot trade shares publicly.”
These two business structures serve different purposes depending on the goals of the company.
Understanding the Core Distinctions
PLCs have the advantage of public share offerings, typically through major exchanges like the LSE, while private limited companies restrict ownership to select investors without public trading options.
- PLC: Shares traded publicly, open to investors
- LTD: Shares held privately, usually among founders, family, or a small group of investors
Minimum Share Capital
To become a PLC in the UK, the company must have a minimum share capital of £50,000, with at least £12,500 paid up before starting trade. An LTD, on the other hand, has no minimum capital requirement, making it more accessible for small businesses or startups.
Financial Disclosure and Regulation
- PLCs face stricter reporting rules than LTDs. They must:
- File detailed annual reports
- Be audited annually
- Comply with stock exchange regulations (if listed)
- Report more transparently to shareholders and the public
LTDs still file annual accounts with Companies House, but their reporting obligations are lighter, especially for small companies.
Management Team Essentials
The director count tells the story: LTDs need only one, while PLCs must appoint at least two directors plus a formally qualified secretary.
This reflects the higher level of public accountability that PLCs must uphold.
Raising Funds Through Public Investment
One of the key benefits of establishing a public limited company is its capacity to secure substantial funding from a wide range of investors.Publicly-listed firms enjoy multiple financing avenues – from equity sales on exchanges that attract professional investors to bond issues that provide alternative funding streams.In contrast, LTDs are limited to private funding sources such as personal savings, loans, or private investors.
The Great UK Company Debate: PLC or LTD?
Before incorporating, understand how these two business models differ in practical, everyday operations.
Here’s a breakdown of how these two entities compare across key features — now explained in plain English, without a table.
The Ownership Spectrum
At one end, PLCs offer shares to the wider public through markets. At the other, LTDs maintain exclusive ownership among a private group of stakeholders.
The Power of Public Listing
Stock exchange flotation – on markets such as the LSE – gives PLCs a powerful mechanism to secure funding from diverse investors.
LTDs, on the other hand, are not allowed to list their shares publicly and cannot be traded on the stock market.
Capital Requirements Explained
Starting a PLC? You’ll need £50,000 in shares issued, with no less than 25% actually paid in before trading begins.
This requirement ensures the company has sufficient financial backing. Private limited companies do not have any set minimum capital requirement, making them more accessible for startups and small businesses.
Management Team Requirements
The rules differ sharply: PLCs need multiple directors and a qualified governance professional, while private companies can operate with a single director and no secretary.
Financial Reporting Obligations:
PLCs are required to publicly disclose their financial activities. This includes publishing full annual accounts, undergoing independent audits, and maintaining a high level of transparency. Private limited companies have fewer reporting obligations and can often file simplified accounts, especially if classified as a small business.
The Capital Advantage
Public companies have a powerful edge: they can tap into vast pools of investor funds via stock offerings. This access to substantial capital fuels expansion and large-scale operations that private firms might struggle to finance.
Ds are limited to private funding sources like loans, personal funds, or private investors.
Business Scale and Suitability:
Public limited companies are ideal for large-scale, national, or international businesses that require significant funding and public trust. Private limited companies are typically better suited for small to medium-sized enterprises (SMEs), family-owned businesses, or closely held ventures looking for more control and less public scrutiny.
Main Difference Between PLC and LTD
- A PLC is publicly traded and raises capital from the stock market.
- An LTD is privately held and funded through private investment.
- PLCs face greater regulation but benefit from greater financial flexibility.
- LTDs offer more privacy, lower costs, and less reporting pressure.
In short, if your business is aiming for rapid growth, external investment, and wide public reach, a PLC might be the best fit. However, if you’re building a closely held company with simpler compliance needs, an LTD may offer more flexibility and control.
Pros and Cons of Running a Public Limited Company
Voice Search-Friendly Answer:
“A public limited company offers greater access to funding and credibility but comes with strict regulations and public scrutiny.”
Running a public limited company (PLC) in the UK can be both rewarding and demanding. The structure suits businesses that need significant capital and wide-scale operations, but it also introduces complex regulatory responsibilities.
The PLC Advantage: Superior Access to Capital
When it comes to securing investment, public limited companies outperform all other business structures in their ability to generate substantial funding.
This makes expansion, acquisitions, or product innovation much more achievable. For example, Tesco used its PLC status to grow its digital and international footprint.
The Prestige Factor
A public listing isn’t just about capital – it elevates your brand’s standing, creating automatic trust in the marketplace.
Public financial reporting builds trust with shareholders, partners, and the public. It shows you’re transparent and accountable.
Improved liquidity for shareholders
Because shares are traded publicly, investors and founders can buy and sell more freely compared to private companies.
Attracting top talent.
PLCs often use share options and employee share schemes (like EMI) to reward staff, making them more attractive to high-level talent.
Potential for global reach.
With access to international capital and high public visibility, PLCs often expand faster and scale beyond national borders.
Disadvantages of a Public Limited Company
Heavy compliance and regulatory burden.
PLCs must publish detailed financial accounts, undergo independent audits, and comply with UK Corporate Governance Code. This takes time, money, and expertise.
Public scrutiny and loss of privacy.
Every financial decision, executive change, or public statement can affect your share price. Unlike private companies, PLCs have limited confidentiality. Shareholders can influence business direction, which may reduce founder control.
Risk of hostile takeovers.
Because shares are sold publicly, other companies or investors could attempt a hostile acquisition if they gain a significant stake in your business.
Costs of being listed.
Initial Public Offerings (IPOs) are expensive, and staying listed includes ongoing legal, admin, and compliance costs. Many small businesses simply can’t afford it.
Pressure to prioritise short-term profits.
Public shareholders often expect quarterly returns. Such environments tend to reward quick wins at the expense of future-proof planning.
Is a PLC Right for Your Business?”
Becoming a PLC gives your business access to public capital, increases trust, and supports large-scale growth. However, it brings high regulatory demands, loss of privacy, and constant investor scrutiny.
Weighing Up: Is a PLC Structure Right for You?
Voice Search-Friendly Answer:
“A public limited company is right for your business if you plan to raise large-scale funding, grow quickly, and are prepared to meet strict regulatory standards.”
While it offers unmatched access to capital and greater public trust, it also involves complex governance and high levels of transparency. If your business is still in its early stages or serves a small local market, forming a PLC may be more of a burden than a benefit.
Think of a PLC as a high-powered vehicle: it can take you far and fast, but you’ll need the right engine, fuel, and maintenance to run it successfully.
When Is a PLC a Good Fit?
- A public limited company may be the right structure if your business:
- Needs significant external funding to grow
- Plans to list on the stock exchange and attract public shareholders
- Can meet strict financial reporting and auditing requirements
- Has a strong governance structure in place
- Is looking to build credibility with large investors, partners, and customers
For example, if you’re scaling a technology firm that needs millions in R&D funding and wants to compete globally, a PLC could offer the access and trust you need.
When a PLC Might Not Be Right
If you’re running a small to medium-sized enterprise (SME), a family business, or a startup with limited operations, the obligations of a PLC might slow you down.
A Private Limited Company (LTD) offers far more flexibility, lower operating costs, and more control — making it a better fit for most early-stage or closely-held companies.
Also, if you’re not ready to share control with external investors or face the scrutiny of public financial disclosure, a PLC could feel overwhelming.
Key Questions to Ask Before Choosing PLC Status
- Ask yourself the following:
- Do I need to raise millions in capital soon?
- Am I ready to make my finances public and be audited annually?
- Can I handle regulatory pressure from Companies House and possibly the FCA?
- Is my leadership team strong enough to manage shareholder relations and public communication?
If the answer is “yes” to most of these, it may be time to explore PLC formation seriously.
Is a PLC Right for Me?
A PLC is ideal for ambitious, growth-driven businesses that need external funding and are ready for full financial transparency. For smaller, privately held companies, a more flexible structure like an LTD may be more appropriate.
Funding Options for Public Limited Companies
Voice Search-Friendly Answer:
“A public limited company raises capital by selling shares to the public, issuing bonds, or attracting institutional investors.”
A Public Limited Company (PLC) has more options for raising capital than most other UK business structures. Its ability to offer shares to the public means it can tap into vast funding sources from individual investors, pension funds, and financial institutions — all in exchange for equity.
Fuel for Ambitious Business Goals
Such capital access proves invaluable for companies pursuing mergers, market growth, or technological breakthroughs.
The Stock Market Launchpad
Companies “go public” via an IPO—their inaugural share offering that opens doors to public investment.
It’s the most significant capital-raising event for any PLC.
In the UK, companies typically list on the London Stock Exchange (LSE). When they “go public,” they allow anyone — including members of the public — to buy a portion of their company in the form of shares.
For example, when Deliveroo launched its IPO in London, it raised millions, helping fuel its growth across the UK and Europe.
Issuing New Shares
After the IPO, a PLC can continue raising money by issuing additional shares.
These new shares are sold to existing shareholders or new investors. However, doing this dilutes existing ownership — so it’s typically done with shareholder approval.
Companies like Rolls-Royce have used secondary offerings to fund research and development or support restructuring efforts.
Securing Big-Ticket Investors
Public companies frequently draw major institutional money – from pension schemes to asset managers – providing substantial capital injections.
These investors often buy large blocks of shares — providing substantial funds and long-term support.
For example, FTSE 100 companies often rely on investment from UK pension funds, which hold billions in capital and look for stable, regulated investment opportunities like established PLCs.
Corporate Bonds and Debentures
While shares are a common way to raise equity capital, many PLCs also raise funds by issuing corporate bonds or debentures.
Unlike shares, these don’t dilute ownership — but they do require the company to make regular interest payments.
Companies like BP and Tesco often issue bonds to fund infrastructure, acquisitions, or sustainability efforts while keeping shareholder equity intact.
Investor Retention Strategy
To reward loyalty, PLCs allow current shareholders to buy more stock at a lower price in a rights issue, maintaining their stake before new investors can participate.
It’s a way of raising funds while prioritising loyal investors.
This strategy is often used during restructuring, emergency funding (like during the COVID-19 pandemic), or to support major new projects.
Ways PLCs Raise Capital
-
Launching an IPO to list on the stock exchange
-
Issuing new shares to the public or private buyers
-
Attracting large institutional investors
-
Issuing corporate bonds and debentures
-
Offering rights issues to existing shareholders
By having these flexible options, UK PLCs can raise millions — sometimes even billions — to fuel business growth, innovation, and global expansion.
Conclusion: Why Understanding PLCs Matters for UK Entrepreneurs and Investors
Voice Search-Friendly Answer:
“Understanding PLCs helps UK business owners make better growth decisions and helps investors choose companies with public trust and financial transparency.”
Whether you’re an aspiring entrepreneur, a business owner looking to scale, or a potential investor, understanding how public limited companies work gives you a real edge. PLCs play a huge role in the UK economy — from powering the high street (like Tesco) to driving innovation in aerospace (like Rolls-Royce) and transforming the energy sector (like BP).
For founders, knowing the requirements and responsibilities of a PLC helps you plan for the future. For investors, PLCs offer access to regulated, transparent companies where you can buy, sell, and track shares openly.
Why This Knowledge Matters
- Understanding the PLC model gives you the ability to:
- Make informed decisions about business formation
- Recognise investment opportunities in publicly traded firms
For example, if you’re running a fast-growing tech business and aiming to attract external funding, knowing what it takes to become a PLC can shape how you build your board, report your finances, or pitch to investors.
The Takeaway
A PLC is a powerful business structure for raising funds and building public trust.
It’s not right for every company — but for the right business at the right stage, it unlocks national and global growth.
Entrepreneurs should understand the regulatory, capital, and public accountability landscape of PLCs.
Investors benefit by recognising what makes a PLC stable, transparent, and potentially profitable.
Final Thought: Ready to Go Public?
Becoming a PLC isn’t just a legal structure — it’s a strategic milestone. For the UK’s most successful companies, it has been the path to scale, innovation, and long-term legacy.
If you’re considering forming a public company or investing in one, take time to understand the rules, risks, and rewards. A strong understanding of the PLC model can help you avoid costly mistakes — and make smarter moves for the future.
