The P.L.C. or Public limited company:


Why should you choose a P.L.C.?


Restrict the risks: The debts of the company cannot engage the personal inheritance of the shareholders; the responsibility for the shareholders, in the absence of fraud, is limited to the number of actions they have.

To prepare and facilitate the transmission of the company: the structure of a joint stock company allows that the company does not disappear because of death of the shareholders. One avoids the paralysis of the operations of the company in case of systematic opposition of an heir, since the decisions are made in the majority. The social structure facilitates the sale of the company.

Tax advantages: the development of a trade through company facilitates the identification of the expenditure related to this trade, likely thus to be deduced from the gross income as an income tax.

Economic advantages: the social structure facilitates obtaining bank loans, insofar as it guarantees to the banking institution a surer assignment of the lent capital, it facilitates the bulk-heading of the activities of the company, making it possible to ensure the guarantee of the loan.

The creation of a P.L.C.:

There are imperative rules enacted by the commercial law, but in general, an extensive power of attorney is left to the founders of the company. The statutes must imperatively contain following information:

• The name of the company (followed by the abbreviation C. por A. or C.A.)
• The domicile of the corporation
• The social object
• The accounting period
• The authorized capital
• The capital subscribed and paid
• Statutory reserves
• The face value of the shares and the kind of share
• The description and the value of the goods brought in nature
• The list of the shareholders
• The names and functions of the leaders
• The name(s) and address(es) of the Auditor(s)
• The banks in which will be open the accounts of the company
• The name of the people having power to engage the company

Procedure of register: a new law (2002) aims to modernize and simplify the procedure of constitution of a company by extending the capacity of the Chamber of Commerce. The registration at the Chamber of Commerce is public, obligatory, and opposable with the third-parties. It must be renewed every 2 years.

Once this registration is carried out the company will have to be registered with the National Register of Taxpayers (RNC) near the Directorate General for Internal Taxes. Law firms can carry out the steps of constitution of a company.