What is the required minimum share capital for a company to become a plc?

To become a public limited company (plc) in the UK, a company must have a minimum share capital requirement of £50,000. This capital must be at least partially paid up, meaning that at least 25% of this amount must be issued and paid for by shareholders.

This requirement is in place to ensure that a plc has a sufficient financial foundation before it can offer its shares to the public. The higher share capital not only reflects the additional regulatory responsibilities and market expectations associated with being publicly listed but also provides a buffer for creditors and stakeholders.

In contrast, lower amounts, such as £25,000 or £75,000, do not meet the statutory requirement set for public companies. Additionally, £100,000 exceeds the minimum threshold, making it unnecessary as a requirement to simply achieve plc status. Thus, the correct answer reflects the legal framework governing public companies in the UK.