January 2026 UK Incorporation Report: 52,000+ New Companies

January is traditionally the busiest month of the year for new company formations in the UK, and January 2026 was no exception. Our data shows 52,400 new companies were incorporated at Companies House during the month — a strong start to the year and broadly in line with January 2025's figure of 58,200.

Here's the full breakdown.

Monthly overview

January 2026 saw 52,400 new incorporations, representing an average of approximately 2,380 new companies per working day (22 working days in January 2026). The busiest single day was Monday 5th January with 3,180 incorporations — a typical post-holiday surge as formation agents processed applications submitted over the Christmas break.

Year-on-year comparison

January 2026's total of 52,400 represents a 10% decrease compared to January 2025 (58,200). However, this should be interpreted carefully. January 2025 was unusually strong, partly driven by Companies House fee changes that prompted some incorporations to be brought forward. The 2026 figure is actually closely aligned with the pre-2025 trend.

Looking at the three-year trend (excluding the 2025 anomaly), January incorporations are remarkably consistent at around 52,000-55,000. The UK's appetite for starting new businesses remains robust.

Top sectors by incorporation volume

Using SIC code analysis, here are the top 10 sectors for new incorporations in January 2026:

Retail continues to dominate, driven primarily by e-commerce and marketplace sellers. Real estate holds its second-place position — the formation of property SPVs (special purpose vehicles) for buy-to-let remains common despite recent regulatory headwinds.

Notable sector movements

IT and software climbed from 7th to 6th place compared to the same month last year, reflecting continued growth in the UK's tech sector. Clean energy and sustainability companies, while not yet in the top 10, grew by 18% year-on-year — the fastest growth of any sector.

Taxi and private hire companies continued to decline, down 12% year-on-year, likely reflecting the maturation of ride-hailing platforms and tighter licensing requirements in several cities.

Regional breakdown

Incorporation volumes by region for January 2026:

London's 32% share is consistent with previous months, though as we've noted before, this figure is inflated by virtual office addresses. The North West (Manchester, Liverpool, and surrounding areas) continues to grow as a regional hub, with incorporation volumes up 4% year-on-year.

Company types

The private limited company remains overwhelmingly dominant, accounting for 96% of all formations. This reflects the simplicity of incorporating a Ltd company (as little as £50 and a few hours via a formation agent) and the favourable tax treatment compared to operating as a sole trader.

Notable trends and observations

The "new year effect"

January consistently sees the highest incorporation volumes of any month. The "new year, new business" psychology is real — many entrepreneurs use the start of a new year as the catalyst to formalise business plans. We also see a post-Christmas surge in the first working week as people who made decisions over the holiday period follow through.

Identity verification impact

The ongoing rollout of Companies House identity verification for directors (part of the Economic Crime and Corporate Transparency Act) has not yet had a measurable impact on incorporation volumes. The process adds a step to formation but is not proving to be a significant barrier. We'll continue monitoring this throughout 2026.

Formation speed

The average time from application to incorporation remains under 24 hours for electronic filings (which account for over 99% of all applications). Same-day incorporation is the norm via formation agents and the Companies House web filing service.

What this means for B2B sellers

January's 52,400 new companies represent 52,400 businesses that need services now. Whether you're an accountant, insurance broker, web agency, or any other B2B service provider, the new year surge creates the highest-volume prospecting period of the year.

If you're not already tapping into this pipeline, you're missing the busiest month. The good news: February, March, and the rest of the year will continue to deliver 40,000-55,000 new companies per month. The pipeline never stops.

Methodology

This report is based on data collected by NewCo Data from Companies House during the period 1-31 January 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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