February 2026 UK Incorporation Report: 46,800 New Companies
February is traditionally one of the quieter months for UK company formations — shorter month, fewer working days, and the post-January rush has faded. But February 2026 still delivered a solid 46,800 new company incorporations at Companies House, reinforcing the underlying health of UK entrepreneurship.
Here's our full monthly breakdown.
Monthly overview
February 2026 saw 46,800 new incorporations across 20 working days, giving an average of approximately 2,340 new companies per working day. That daily average is remarkably close to January's 2,382 — the lower monthly total is almost entirely explained by two fewer working days rather than any dip in formation activity.
Year-on-year comparison
February 2026's total of 46,800 is down 5.4% compared to February 2025 (49,500). However, as with last month's figures, this comparison is somewhat misleading. February 2025 benefited from a spill-over effect — applications that were delayed from the unusually strong January 2025 period. On a three-year average basis, February 2026 is right in line with expectations.
The four-year February average sits at 46,575 — making February 2026 almost perfectly typical. Strip out the 2025 anomaly and the trend shows a steady 1.7% annual growth in February formations, which aligns with broader UK business formation trends.
Top sectors by incorporation volume
Using SIC code analysis, here are the top 10 sectors for February 2026:
Retail holds firm at the top, accounting for 14% of all formations — consistent with January. Real estate dipped slightly from 11.0% to 10.5%, which may reflect seasonal patterns in the property market (fewer completions in the dead of winter).
Notable sector movements
Construction (specialist trades) overtook food & drink to claim fourth place, up from fifth in January. This is typical February behaviour — construction firms formed now are positioning for the spring and summer building season, when demand peaks. Electrical contractors, plumbing firms, and landscaping businesses all showed strong growth.
IT and software maintained its share at 5.0%, continuing the steady climb we've tracked since late 2025. Within this category, AI and machine learning related SIC codes accounted for an estimated 8% of IT formations — still small in absolute terms but growing rapidly.
Clean energy and sustainability companies grew 22% year-on-year in February, accelerating from the 18% growth seen in January. Solar installation companies, EV charging infrastructure firms, and green consultancies are all contributing to this trend. We expect this sector to enter the top 10 by the second half of 2026.
Regional breakdown
London holds steady at 32%. As we consistently note, this figure includes virtual office registrations — many businesses that operate elsewhere use London addresses for credibility. The real figure for London-based businesses is likely closer to 22-24%.
The North West's share increased to 11.0%, up from 10.5% in January. Manchester continues to be the engine here, with MediaCityUK in Salford and the Northern Quarter driving tech and creative business formations. Liverpool's Baltic Triangle area is also emerging as a start-up cluster.
Northern Ireland dipped to 1.5% from January's 2.0%. This is likely a seasonal blip rather than a trend, but we'll monitor it. Cross-border trade complexities continue to create unique challenges for Northern Irish businesses.
Company types
No surprises here. The Ltd company continues to dominate at 96%. Limited by Guarantee (typically used for non-profits and community organisations) remains at 2.5%, though we've noticed a slight uptick in community interest companies (CICs) within this category — up 6% year-on-year.
Q1 2026 trajectory
With January and February data now complete, we can project the Q1 2026 picture:
March typically sees a rebound from February's lull, driven by financial year-end planning (the UK tax year ends 5 April). Many accountants advise clients to incorporate before the end of the tax year to optimise their first-year tax position. We expect March 2026 to land between 50,500 and 53,000 incorporations.
If this projection holds, Q1 2026 will deliver approximately 150,000 new companies — broadly flat year-on-year with Q1 2025 (155,400), and a healthy result given the economic headwinds.
Identity verification update
The Companies House identity verification (IDV) requirement, part of the Economic Crime and Corporate Transparency Act 2023, continues its phased rollout. As of February 2026, new directors must complete identity verification within 14 days of appointment. Our data shows this is adding approximately 1-2 days to the effective formation timeline for companies where directors haven't pre-verified — but it's not deterring formations.
Formation agents have largely absorbed the IDV process into their workflows, and many directors are now pre-verifying before filing incorporation documents. The impact on total volumes remains negligible.
What this means for B2B sellers
February's 46,800 new companies represent 46,800 businesses actively looking for services right now. The first 30 days after incorporation are critical — new businesses need:
- Accountants — to set up their books, register for VAT/PAYE, and plan tax strategy
- Insurance brokers — professional indemnity, public liability, and employers' liability cover
- Web agencies & designers — websites, branding, and digital presence
- Banks — business accounts, payment processing
- Solicitors — shareholder agreements, terms of business, GDPR compliance
- IT providers — email, cloud services, cybersecurity
The window is narrow. Within 60 days, most new companies have made their initial service provider decisions. If you're reaching them on day 1-7, you're in a strong position. By day 30, you're competing with established relationships.
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Start Your 7-Day Free TrialLooking ahead: March 2026
March brings several factors that should boost formation volumes:
- Tax year-end planning — accountants advising clients to incorporate before 5 April
- Spring Budget effects — any government announcements could trigger formation activity
- Construction season ramp-up — expect a continued surge in specialist trades
- University term endings — student entrepreneurs formalising businesses before graduation
We'll publish our March 2026 report in the first week of April. Follow us to get notified.
Methodology
This report is based on data collected by NewCo Data from Companies House during the period 1-28 February 2026. All incorporations processed by Companies House during this period are included. Sector classifications are based on SIC codes declared at incorporation. Regional classifications are based on the postcode of the registered office address. Figures are rounded to the nearest 10.
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Previous report: January 2026 UK Incorporation Report