March 2026 UK Incorporation Report: 51,200 New Companies — Tax Year-End Surge Confirmed
As predicted in our February report, March 2026 delivered a strong rebound in company formations. The tax year-end effect is real — with the UK tax year closing on 5 April, accountants across the country have been advising clients to incorporate before the deadline, and the data shows it clearly.
51,200 new companies were incorporated at Companies House in March 2026 — a 9.4% increase from February's 46,800 and right at the top end of our projected range.
Monthly overview
March 2026 saw 51,200 new incorporations across 22 working days, producing a daily average of approximately 2,330 new companies per working day. However, this average masks significant variation within the month — the final two weeks saw notably higher daily volumes as the 5 April tax year deadline approached.
Year-on-year comparison
March 2026's total of 51,200 is broadly flat compared to March 2025 (52,800), representing a modest 3.0% year-on-year decline. Given the £100 incorporation fee that took effect in February 2026 — double the previous rate — a small dip is unsurprising. The higher fee appears to be filtering out speculative or dormant registrations rather than deterring genuine new businesses.
On a four-year basis, March 2026 sits above the four-year average of 50,450. The trend is healthy — more companies are forming every March, and the spring surge pattern continues to hold.
Top sectors by incorporation volume
Using SIC code analysis from our daily data collection, here are the top 10 sectors for March 2026:
The big shift: Real estate takes the crown
For the first time in 2026, real estate overtook retail as the top sector for new incorporations. This is a classic tax year-end pattern — property investors and buy-to-let landlords incorporate holding companies before 5 April to optimise their tax position for the new financial year. We saw the same pattern in March 2025 and March 2024.
Within real estate, the majority of formations are property holding SPVs (special purpose vehicles) used for buy-to-let portfolios. These companies often have a single director-shareholder and a registered office at an accountant's address — a clear sign of professional tax planning rather than a new start-up in the traditional sense.
IT & software accelerates
IT & software climbed to 6.7%, up from 5.0% in both January and February. This marks the sector's highest monthly share since we began tracking in 2024. Within this category, AI and machine learning SIC codes now account for an estimated 11% of IT formations — up from 8% in February. The AI company formation trend shows no signs of slowing.
Construction builds momentum
Combined, specialist and general construction accounted for 4,660 incorporations (9.1%) — the highest share of any month this year. Spring is when construction businesses gear up for the busy building season ahead. Electrical, plumbing, and landscaping firms all surged, with specialist trades growing 11% month-on-month.
Regional breakdown
Regional shares remained largely stable from February. London holds at 32% — as always, we note this includes virtual office registrations, with the true London-operating figure likely closer to 22-24%. The North West maintained its 11% share, with Manchester and Liverpool continuing to punch above their weight in tech and creative industries.
Scotland's share held at 5.5%, with Edinburgh accounting for the lion's share. The Scottish Government's continued investment in tech hubs and start-up support is paying dividends, though Glasgow's share is growing faster than Edinburgh's in percentage terms.
Q1 2026: The full picture
With all three months now complete, here's the definitive Q1 2026 summary:
Q1 2026 delivered 150,400 new incorporations — within our projected range of 149,700-152,200 and down 3.2% from Q1 2025's 155,400. The modest decline is almost entirely attributable to the doubled incorporation fee, which has thinned out speculative registrations without dampening genuine entrepreneurship.
Company types
The Ltd company dominates at 96%, unchanged from recent months. LLPs saw a slight uptick to 0.8%, likely driven by professional services firms (accountants, solicitors, consultants) incorporating before the tax year end. Community Interest Companies (CICs) within the Limited by Guarantee category grew 8% year-on-year, continuing the social enterprise trend.
Identity verification: Settling in
The Companies House identity verification (IDV) requirement, now several months into its rollout, appears to have been fully absorbed by the market. Our data shows the additional processing delay has shrunk from 1-2 days to under 1 day as directors increasingly pre-verify before filing incorporation documents.
Formation agents report that IDV has become a routine step rather than a friction point. The bigger effect has been on data quality — verified director information is more reliable, which improves the accuracy of company data for B2B prospecting purposes.
What this means for B2B sellers
March's 51,200 new companies are actively setting up their businesses right now. The tax year-end timing is significant — many of these companies were incorporated for a specific reason (tax optimisation, new financial year, spring trading season), which means they're serious about trading.
The services new companies need most urgently:
- Accountants — first-year tax planning, VAT registration, annual accounts setup
- Insurance brokers — professional indemnity, public liability, employers' liability
- Banks — business accounts, payment processing, merchant services
- Web agencies — websites, branding, domain registration, email setup
- Solicitors — shareholder agreements, commercial leases, employment contracts
- IT providers — cloud services, email, cybersecurity, hardware
- Telecoms — business broadband, VoIP, mobile contracts
- Energy brokers — gas and electricity contracts for commercial premises
Don't miss the spring surge
NewCo Data delivers daily reports of newly incorporated UK companies, filtered by your target sector and region. With 2,500+ new companies forming every working day, speed matters — reach them before your competitors.
Start Your 7-Day Free TrialLooking ahead: April 2026
April typically sees elevated formation volumes through the first week (covering the tax year deadline of 5 April) before settling into a more typical pattern. We expect:
- Strong first week — a final rush of tax year-end incorporations through 5 April
- Post-Easter dip — Easter falls on 5 April this year, creating an unusual overlap with the tax deadline that may pull some formations forward into late March
- Construction and hospitality surge — seasonal businesses ramping up for summer trading
- AI and tech momentum — continued growth in technology company formations
Our projected range for April 2026 is 47,000-50,000 incorporations, making it another strong month for B2B prospecting.
We'll publish the April 2026 report in the first week of May. Follow us to get notified.
Methodology
This report is based on data collected by NewCo Data from Companies House during the period 1-31 March 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: February 2026 UK Incorporation Report