Question

Construct a table to show the various legal statuses of businesses (such as PLC, LTD, Registered Charity etc) that your business may adopt. Identify the relative strengths and weaknesses of these legal statuses.

Answer 1

Before a public company can acquire its trade certificate from Companies House and begin business, it needs to have a minimum share capital of £50,000, of which at least one-quarter plus any share premium must be paid up. This is the only sort of business that can raise funds by selling securities to the public (such as shares or debentures). This is often accomplished by getting a stock exchange or other public market listing, such as the Alternative Investment Market. On a wide range of issues, public firms have more strict regulatory obligations than private corporations, particularly in relation to share capital, directors, and accounting.