Plc vs. Inc — What's the Difference?
Edited by Tayyaba Rehman — By Maham Liaqat — Updated on May 9, 2024
PLC (Public Limited Company) is a British term for a company that offers shares to the public and is publicly traded, while Inc (Incorporated) is a U.S. designation for a legally established company that can be either public or private.
Difference Between Plc and Inc
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Key Differences
PLC refers to a type of company in the UK that can sell shares to the public and is listed on a stock exchange. Its structure encourages broader investment but requires strict financial reporting. Inc, commonly used in the U.S., signifies that a company is legally incorporated, offering liability protection for owners and the flexibility to operate publicly or privately.
PLCs, due to their public nature, must adhere to stricter regulations and disclose their financials publicly to maintain transparency. Incs, on the other hand, can have more varied financial disclosure requirements depending on their public or private status.
PLCs are often larger because they are incentivized to grow via public investment and must meet higher minimum capital requirements. Incs can start small and may remain so, giving more room for privately owned businesses to thrive.
PLCs are generally governed by a board and shareholders, who vote on major decisions. Incs may also have boards, but private companies often grant more direct control to a smaller group of owners.
PLCs are accountable to shareholders due to their public nature and stock exchange listing. Incs can be more closely held, with accountability often limited to a smaller ownership group.
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Comparison Chart
Geographic Usage
Primarily UK
Primarily U.S.
Public vs. Private
Public, listed on stock exchanges
Public or private
Ownership Requirements
Minimum two directors
Usually requires at least one director
Financial Reporting
Stricter disclosure for transparency
Varies based on public/private status
Investor Base
Broader due to public offerings
Can be limited in private companies
Compare with Definitions
Plc
Publicly traded company.
The PLC is listed on the London Stock Exchange.
Inc
Incorporated company.
The startup became an Inc for liability protection.
Plc
Minimum capital requirement.
A PLC must have a minimum share capital to operate.
Inc
Flexible ownership structure.
An Inc can have various stock classes.
Plc
Shareholder governance.
Shareholders influence PLC decisions through votes.
Inc
Varying reporting standards.
A private Inc has fewer reporting requirements.
Plc
Annual general meetings.
The PLC holds an AGM to address investor concerns.
Inc
Governance.
An Inc has a board of directors for major decisions.
Plc
Strict financial disclosures.
A PLC files comprehensive annual reports.
Inc
Public or private.
A tech firm was a private Inc before going public.
Plc
(business) public limited company
Inc
Alternative spelling of Inc
Plc
(electronics) programmable logic controller
Inc
Abbr of incoming
Inc
(programming) increment
Inc
(knitting) increase
Inc
A Japanese measure of length equal to about two and one twelfth yards.
Inc
A heterogeneous collection of groups united in their opposition to Saddam Hussein's government of Iraq; formed in 1992 it is comprised of Sunni and Shiite Arabs and Kurds who hope to build a new government
Common Curiosities
Are all PLCs listed on the stock exchange?
Yes, a PLC generally trades shares on a recognized stock exchange.
Do Incs need to disclose financials like PLCs?
Public Incs do, but private Incs have less stringent reporting.
Can a PLC be privately held?
No, a PLC is publicly traded and must meet public disclosure standards.
Is shareholder voting required for all Incs?
Private Incs can limit shareholder voting, while public ones follow stricter rules.
Does a PLC have minimum capital requirements?
Yes, it requires a minimum share capital to register.
What is the primary advantage of becoming an Inc?
Incorporation provides liability protection and operational flexibility.
How many directors must a PLC have?
A PLC usually requires at least two directors.
How are taxes different for PLCs vs. Incs?
Both pay corporate taxes, but specifics depend on local tax laws.
Can Incs operate internationally?
Yes, many international companies are incorporated as Incs.
How does a PLC differ from a limited company?
A PLC trades shares publicly, while limited companies often remain private.
Do PLCs always distribute dividends?
Not necessarily; it depends on the company's dividend policy.
Can Incs go public easily?
Yes, private Incs can go public through an initial public offering.
Are Incs suitable for startups?
Yes, incorporation offers liability protection and growth potential.
Can an Inc be converted to a PLC?
In the UK, a private limited company can convert to a PLC if it meets the requirements.
What is the role of a board in a PLC?
The board oversees management and ensures shareholder interests are met.
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Written by
Maham Liaqat
Edited by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
