Inform direct have released their yearly review of UK Company Formations.
This report gives a great insight into the amount of businesses which opened their doors (and closed their doors) in the last year.
2020 was an unexpected year to say the least… but how does the coronavirus pandemic impact their findings?
What Data Is Included In The Report?
The data is collected from Companies House and the Office of National Statistics.
The review is then compiled and the statistics produced on an interactive regional map produced by Inform Direct.
This means we have easy-to-read data that shows how many businesses were formed and closed in the UK… in comparison to previous years.
UK Company Highlights
Despite the horrendous year we’ve just experienced, you might be surprised to hear that there has been an uptake in both the amount of new company formations, and the total amount of companies in the UK.
The number of UK companies stands at 4,837,426. This is an increase of 8.2% since 2019.
A total of 780,766 companies were formed in 2020, with almost 35% of those being formed in London, with a high proportion of formations happening between June and October.
However, 418,427 UK companies closed their doors, and dissolved, during 2020.
Over the past five years, the number of UK companies in existence is up by 28.7%.
With many businesses benefitting from coronavirus support, this data isn’t a complete surprise – but it is encouraging to see the UK continue with a positive trajectory in company formations despite the turbulence during 2020.
As mentioned above London takes the top spot in the league table – this is where the most startup activity has happened! They report that 270,114 new companies were formed in London.
Outside of London, the most popular areas for new company formations in England were the West Midlands (37,202), Greater Manchester (36,288), West Yorkshire 22,615) and Essex (19,277).
Across the other nations Glasgow leads the way with 7,293 company formations, Cardiff has 4,036 company formations and Belfast has 2,122 company formations in 2020.
Read The Full Report
Inform Direct have published the full report on their website, which also allows you to take a look at your own region’s performance over the past 5 years!
For the full statistics, presented in an awesome interactive format – click the link below.
View Inform Direct’s Review Of Company Formations Here
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