What must PLCs obtain before commencing trade?

Public Limited Companies (PLCs) must obtain a trading certificate before they can commence trading. This trading certificate serves as evidence that the company has been properly registered and meets the necessary legal requirements to operate. Specifically, it confirms that the PLC has raised the minimum required share capital and has completed the necessary legal formalities in accordance with the Companies Act.

The trading certificate verifies that the company is authorized to trade and signifies that all conditions, such as the completion of the company’s registration and compliance with relevant regulations, have been fulfilled. Without this certificate, any trading activities undertaken by the PLC would be considered unlawful.

This requirement is fundamental to ensuring that companies operate under proper regulatory frameworks, providing protection to shareholders and the public by ensuring that the company has met the necessary legal standards before engaging in business operations.