A public limited company (PLC) is a separate legal person created by incorporation at Companies House. Its profits, losses, assets and liabilities are its own. The company is owned by its shareholders and run by the directors whose assets are protected from loss if the business should fail. This is sometimes referred to as limited liability. Because a company has a life of its own the business can continue despite the resignation or death of any directors or shareholders and the sale of the business or the introduction of outside investors is simplified.

A PLC also enables the directors to raise money in the market place or to list on the stock exchange so that its shares may be more freely traded. There is a requirement that there be a minimum of two directors and a Company Secretary. A PLC must have a minimum authorised and issued capital of £50,000. At least 25% (£12,500) of this minimum must be fully paid up before the Registrar of Companies can issue a Certificate for Commencement of Trading. This Certificate must be issued before the company commences any business transactions.