Ltd converting to PLC

[artystitches]

Hi all,

I was recently told that in order to get a PLC company then you should first buy a ltd company of the shelf and then convert it into a PLC company, but why not just go ahead and register straight for PLC. Would there be any point or benefit in converting a Ltd to a PLC rather than going ahead and registering PLC?

:|

 

[Paul Kelly ICHYB]

It is a standard business process - I am not sure of the legal aspects, but many investors would be put off by company that is not formerly structured, with the protection that Limited status brings.

Why do you want to go to PLC? The cost of a public offering and the vast additional costs/dilligence required, even for aim listed, put most people off.

If it is additional funding you need, PLC is not the only only course of action. ALso remember, you may lose sole control of the operation!

 

[sabrina88]

Why Ltd converting to plc ?






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[elaine@cheapaccounting]

Are you sure that you really want a PLC?

I expect that you just need a limited company

 

[oldeagleeye]

I admire your ambition OP but considering that few large accountancy firms in the City are PLC's and you have even started work as a self-employed book-keeper yet you may well consider a little too ambitious.

The mention of which you will have to pay a great deal more attention to detail that you seem to do now. Methinks you still have a lot to learn about the pros & cons in relation to both being elf-employed and going LTD and WHAT for instance to you mean convert to a 'PLC'.

You can in fact have a PLC which is regarded by many people as one step up from a LTD. In other words it is still a 'private limited company' but when with perhaps a bigger issues share capital.

A typical example of this is Techgate PLC. A major player in IT infrastructure with about a dozen directors and far more detailed accountancy proceedures needed.

Nvertheless. As an entity it is still a private limited company as opposed to the entity most people associate with a PLC. A Publically Quoted Company listed on the stock exchange and whose shares can be openly traded on the stock market. For smaller PLC's with say £5 million - £20 million turnover this is useually the AIM or Nasdeg and not the main indice but even so way out of your leaque I would say.

The cost of going a full blown PLC for instance can be £2-3 million. Sometimes more.

I would get on with the day job if I were you then.

Good luck.


Rob

Forgot to mention. Private PLC costs about £300 to register as opposed to about £20 for an LTD.

 

[Billmccallum]

Forgot to mention. Private PLC costs about £300 to register as opposed to about £20 for an LTD.

Apart from the registration costs, there's also the small matter of a minimum £50,000 cash initial capital that must be in place.