UK Company Incorporation Trends: What the 2025 Data Tells Us

The UK remains one of the easiest and most popular places in the world to start a business. In 2025, company incorporations continued at a remarkable pace, with hundreds of thousands of new businesses joining the Companies House register. Here's what the numbers tell us — and what it means if you sell to businesses.

Monthly incorporation volumes

Based on our tracking at NewCo Data, here are the monthly incorporation figures for 2025. The pattern follows a familiar seasonal rhythm, with notable peaks in the spring and autumn.

January is consistently the busiest month for new company formations. This "new year, new business" effect is well-documented — many entrepreneurs use the turn of the year as a catalyst to formalise business plans they've been developing. January 2025 saw approximately 58,200 new incorporations, roughly 30% above the summer lull.

August is the quietest month, as summer holidays and reduced business activity slow the pace of formation. The dip is consistent year-on-year and recovers sharply in September.

Year-on-year comparison

How does 2025 compare to recent years?

After the extraordinary spike during the pandemic years — when redundancies, remote work, and the shift to online commerce drove record numbers of people to start businesses — incorporation volumes have gradually normalised. However, 2025 shows the first signs of stabilisation, with volumes broadly flat compared to 2024 and even a slight uptick.

It's worth noting that even the "normalised" 2025 figure of ~614,000 is significantly higher than the pre-pandemic average of approximately 550,000 per year (2015-2019). The UK's entrepreneurial base appears to have permanently expanded.

Sector trends: what's growing and declining

Not all sectors are moving in the same direction. Based on SIC code analysis of 2025 incorporations, here are the most notable trends:

Fastest-growing sectors

Clean energy and sustainability showed the strongest growth, reflecting both government incentives for green businesses and increasing consumer demand for environmentally conscious products and services. This sector includes solar installation companies, EV-related businesses, and sustainability consultancies.

E-commerce continues to grow, though at a slower rate than during the pandemic years. The barrier to entry for online retail remains exceptionally low, and social commerce (selling through platforms like TikTok Shop and Instagram) is driving a new wave of incorporations.

Declining or flat sectors

The decline in buy-to-let company formations is notable. Changes to tax relief, higher interest rates, and increased regulation (including the Renters' Reform Bill) have made property investment through limited companies less attractive than in previous years. This sector was one of the biggest drivers of incorporation growth in 2016-2019.

Regional patterns

Company formations are heavily concentrated in London and the South East, though there are interesting regional dynamics at play.

London's dominance is partly inflated by the use of virtual office and registered agent addresses. Many companies operated from outside London are registered with a London-based formation agent. However, even accounting for this, London remains the UK's undisputed hub for new business formation.

The North West (led by Manchester) and the West Midlands (Birmingham) are showing the strongest growth outside London, reflecting the regional economic development and "levelling up" investment in these areas.

What this means for B2B sellers

If you sell products or services to businesses, here are the practical implications of these trends:

The opportunity is enormous and ongoing. Over 600,000 new companies per year means roughly 2,500 new potential customers every single working day. That pipeline never dries up.

Sector-specific targeting is essential. The mix of new companies varies significantly by sector and changes over time. Understanding which sectors are growing — and which are declining — helps you allocate your sales resources more effectively.

Regional focus can be a competitive advantage. If you serve a specific geographic area, knowing the incorporation volume and sector mix for your region lets you size your market accurately and focus your outreach.

Seasonality matters. If you're planning a new business acquisition campaign, launching in January or September — when incorporation volumes peak — will give you the highest volume of prospects. Conversely, don't be discouraged by lower response rates in August.

Looking ahead to 2026

Based on current trends, we expect 2026 incorporation volumes to remain broadly stable at 610,000-630,000. The key variables to watch include interest rate movements (lower rates typically encourage business formation), any changes to the tax regime for limited companies, and the impact of ongoing Companies House reform, which is introducing identity verification requirements for directors.

The long-term trajectory is clear: the UK continues to be a nation of entrepreneurs, and the structural shift toward self-employment, portfolio careers, and digital-first businesses shows no sign of reversing. For B2B sellers, that means a consistently replenishing pool of new prospects — provided you have the data to reach them.

At NewCo Data, we track every incorporation as it happens. Start your free trial to see the data for yourself.