New figures show that the number of companies formed in the UK reached record levels in 2019.
Across the UK there were 690,763 companies formed last year, up from the previous record of 669,855 set in 2018.
Of the 613,316 formations in England, 222,468 were in London. A total of 33,843 companies were formed in Scotland, 18,635 in Wales and 8,657 in Northern Ireland. Each of the nations of the UK saw an increase in new companies formed compared to 2018 although there were big local variations.
Dissolutions
Although the number of new companies continued to rise, so did dissolutions of existing businesses. While UK company formations increased 3.1% between 2018 and 2019, dissolutions rose 5.8% in the same period, with a record 533,680 companies dissolved in 2019. It means that for every 100 new companies formed in the year, about 77 existing companies are closed. Naturally, many businesses will fail or not even get off the ground. However, the rising rate of dissolutions is a cause for concern and highlights the role accountants can play in offering solid business advice alongside supporting their clients to fulfil their statutory obligations.
Increase
The total number of UK companies now stands at 4,471,008, up 3.8% in a year.
This represents a 27% increase over five years, from 3,513,186 at the end of 2014. In every country of the UK and every county of England there are now more companies in existence than before. London continues to dominate the UK company population. Over 25% of active companies, a total of 1,204,778, have a registered office address in the capital.
Total companies 2019 league table
1st London 1,204,778
2nd Greater Manchester 189,867
3rd West Midlands 173,134
4th Essex 128,433
5th West Yorkshire 123,678
Edinburgh 52,839
Cardiff 25,351
Belfast 17,982
This information is drawn from the annual Inform Direct Review of Company Formations, which includes a detailed regional analysis of companies formed and closed. You can read the report at www.informdirect.co.uk/company-formations-2019.
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