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BUSINESS TIPS

Do I Need a Trading Certificate?

Before trading, all public limited companies (PLCs) will need to apply for a trading certificate. Private limited companies (Ltds) do not need to apply for a trading certificate and are therefore able to trade as soon as a certificate of incorporation is issued by Companies House.

Companies House issue a trading certificate once an application has been made confirming that the company meets the share capital requirements of a PLC. The Companies Act 2006 requires a public limited company to have a minimum authorised share capital of £50,000 of which at least one quarter of the nominal value and all share premium must be paid up.

Trading without a trading certificate when one is required can result in the directors being prosecuted and issued with a fine. As soon as the trading certificate has been issued the PLC can legally begin trading and can then begin to exercise its borrowing powers.

If you require assistance with the incorporation of your company or commencing trade please contact us on 020 8429 9245 or at info@wisteria.co.uk.