Which type of company must have a minimum share capital of £50,000 and is allowed to offer securities to the public?

A public company must have a minimum share capital of £50,000 and has the ability to offer securities to the public. This requirement is established under UK company law, specifically the Companies Act 2006, which differentiates public companies from private companies.

Public companies, which are often listed on stock exchanges, are subject to stricter regulations, including those related to capital requirements, governance, and reporting. The minimum share capital requirement ensures that public companies have a baseline of financial stability before they can solicit investments from the general public.

On the other hand, private companies are restricted from offering shares to the public and do not have the same capital requirements as public companies. Limited liability companies do not independently require a minimum share capital of £50,000 to operate. A franchise pertains to a different business model entirely and does not fit within the category of public or private companies in this context.