There were 5.63 million active companies registered with Companies House at the end of last year, a new record.
That represents an increase of 3% on the previous year, according to the NatWest and Beauhurst New Startup Index, which is published today.
Almost 850,000 businesses joined the UK’s corporate register last year. The first quarter saw the highest number of company formations of any quarter in the past five years, peaking at 248,000. But despite a robust start, this had fallen to 184,000 incorporations during Q4 in what is historically quietest quarter of the year.
Property businesses recorded the largest percentage increase in new business formations, growing by 38% year-on-year to 44,000. A further 22,000 new takeaway shops and food stands recorded a 14% increase, along with 38,000 management consultancies – a 10.7% increase.
In terms of trends, while companies with all-male Boards continued to represent the majority of new firms, there was a noticeable shift towards more gender-balanced boards. Companies with mixed-gender directorship grew from 10.4% of all incorporations in 2023, to 11.3% in 2024.
it’s vital that the public and private sectors work together to give young start-ups the support, guidance and tools they need to survive and grow
NatWest’s Head of Business Banking James Holianat said the numbers were “testament to the UK’s reputation as a nation of entrepreneurs”. But he added: “With the number of company incorporations falling slightly as 2024 progressed, there is still more to be done to give prospective entrepreneurs the confidence and tools to start a new business.
“Our Accelerator programme plays a key role in giving start-ups the tools to scale and succeed – with data showing our support significantly boosts businesses’ turnover, investment and chances of survival.
“As we move into 2025, with the number of incorporations projected to fall from the exceptionally high numbers of the past few years, it’s vital that the public and private sectors work together to give young start-ups the support, guidance and tools they need to survive and grow, no matter what environment they might face.”
Gareth Thomas, Minister for Small Business, said: “Seeing a record number of active businesses shows the ambition of our country’s entrepreneurs and that the UK is a fantastic place to start and grow a company.”
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